"the two best times to keep your mouth shut are when you're swimming and when you're angry."

Assume PRC Corp., an equipment distributor, sells a piece of machinery with a list price of $600,000 to ACH Inc. ACH will pay $6

katen-ka-za [31]

Answer:

b. $600,000

Explanation:

The company has to record as revenue the product at the list price, then if exist a special discount on the price list, it must be record as discount applied to products in the Income Statement, separate of Revenue or Gross Sales.

The price that the company ACH pay by the product ($650,000) it's not at change on the price if not due to the payments term which is one year later, so the company ACH has to pay a financial cost because the payment will be made one year later.

6 0

3 years ago

How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 39 years at an annual interest ra

Solnce55 [7]

Answer:

It will take 30.10 year

Explanation:

We have given initial investment $500000

Future value = $ 1 million = $1000000

Rate of interest r = 1.79 %

We have to find the time taken to reach the amount $1000000

We know that future value is equal to $A=P(!+\frac{r}{100})^n$

$1000000=500000(!+\frac{1.79}{100})^n$

$2=(1.0179)^n$

Taking log both side

$log2=nlog1.0179$

n×0.0077 = 0.3010

n = 39.09 year

Now in second case rate of interest

r = 2.34 %

So $1000000=500000(1+\frac{2.34}{100})^n$

$2=(1+\frac{2.34}{100})^n$

$2=1.0234^n$

taking log both side

log 2 = n log 1.0234

n×0.01 = 0.3010

n = 30.10 year

8 0

3 years ago

Which of the following statements about recessions is false?

drek231 [11]

The correct answer is choice D-

It not true that a recession is usually no longer than six months. A recession van be longer than 6 months (it takes a 6 months fall in real GDP for a recession to occur), but a recession generally does not last longer than a year. Beyond a year, the situation is much severe, and is called an economic depression.

7 0

3 years ago

Read 2 more answers

The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales $ 11,100 Current as

Pachacha [2.7K]

Answer:

EXTERNAL FINANCING NEEDED IS $383.736

Explanation:

For calculating the external financing , we first have to take out what the sales , cost , asset , liability will be when the sales of the company increases by 17%, so now we have to calculate all the values -

SALES = $11,100 X 1.17 ( multiplying by 17% because of increase in sale)

= $12,987

COST = $7900 X 1.17 (multiplying by 17%)

= $9243

INCOME BEFORE TAX = SALES - COST

= $12,987 - $9243

= $3744

TAXES AT 24% ON TAXABLE INCOME OF $3744

= .24 X $3744 =$ 898.56

Now subtracting this amount from taxable income

$3744 - $898.56 = $2,845.44

Next step would be of paying dividend payout ratio from it

40% of $2,845.44 = .40 x $2845.44

= $1138.176

RETAINED EARNINGS = Taxable income - Dividend payout

= $2845.44 - $1138.176

= $1707.264

NOW TOTAL ASSETS WOULD BE = $15,600(5400+10200) X 1.17

= $18,252

IT IS GIVEN IN THE QUESTION THAT COST, ASSET, LIABILITY(CURRENT) ARE ALL PROPORTIONAL TO SALES.

CURRENT LIABILITY = $3300 X 1.17

= $3861

TOTAL COST = LONG TERM LIABILITY + CURRENT LIABILITY

=$4820 + $3861

= $8681

TOTAL EQUITY EQUAL = $7480 + $1707.264 (RETAINED EARNINGS)

= $9187.264

EXTERNAL FINANCING = ASSET - LIABILITY - EQUITY

= $18,252 - $8681 - $9187.264

= $383.736

4 0

3 years ago

In response to a shortage caused by the imposition of a binding price ceiling on a market,

Margaret [11]

In response to a shortage caused by the imposition of a binding price ceiling on a market,

a. price will no longer be the mechanism that rations scarce resources.

b. long lines of buyers may develop.

c. sellers could ration the good or service according to their own personal biases.

A binding price ceiling is when the government or an agency of the government sets the maximum price of a good or service below the equilibrium price.

When price of a good is set below the equilibrium price of the good, the producer surplus would decreases and the consumer surplus would increase. This would lead to an excess of demand over supply. As a result, a shortage would occur. As a result of the shortage, black markets would occur.

To learn more about a price ceiling, please check: brainly.com/question/24312330

6 0

2 years ago