Answer:
The estimated balance uncollectible using the balance sheet method is $4,727.
Explanation:
In the balance sheet method, the Estimated balance uncollectible is calculated using the percentage of the closing accounts receivables. As account receivables are reported in the balance sheet of the company.
In the income statement method, the Estimated balance uncollectible is calculated using the percentage of sales value because the sale is reported in the income statement.
Estimated balance uncollectible = Accounts receivable x estimation percentage
Estimation percentage = 2.9%
Accounts receivable = $163,000
Placing values in the formula
Estimated balance uncollectible = $163,000 x 2.9%
Estimated balance uncollectible = $4,727
Answer:required return of Nutshell, Inc. stock = 13.2%
Explanation:The Required return also called Hurdle rate is the minimum return in percentage which an investor should receive from doing business or investing in a business to compensate for the risks associated with the business. The more risky the investment, the more high returns and the less risky investment, the lower the returns.
Required Rate of Return = Risk Free Rate + Beta x (Whole Market Return – Risk Free Rate)
given
risk-free rate = 6%
market return= 12 %
beta = 1.2
Required Rate of Return = Risk Free Rate + Beta * (Whole Market Return – Risk Free Rate
= 6% + 1.2 x (12% - 6%) = 6% + 1.2 x 6% = 0.06 + 1.2x 0.06= 0.06 + 0.072=0.132 x 100 = 13.2%
Answer with Explanation:
The Value-added salespersons are the one with better qualification, trainings, experience and have thorough understanding how the sales mechanism would better work in different circumstances and thus are far much better than the transaction salespeople. Furthermore, they are the one who knows what the customer is desiring and this helps them in adding value to their operations and product. Whereas transactional salesperson add very little value to sell the product because the customer knows about the product features and the presence of the transactional salesperson doesn't have any significant impact on the customer perception.
Answer: $17,209,000
Explanation:
Given that,
Production volume = 602,000 units per year
Market price = $32 per unit
Desired operating income = 15% of total assets
Total assets = $13,700,000
Total Income = 15% of Total assets
= $13,700,000 × 15%
= $ 2,055,000
Total Sales = Market price × Production volume
= $32 × 602,000
= $ 19,264,000
Target full product cost in total for the year = Total Sales - Total Income
= $ 9,264,000 - $2,055,000
= $17,209,000
Answer: A. The internal rate of return is expressed as a percent rather than the absolute dollar value of present value.
Explanation:
The internal rate of return is used in calculating the rate of return for the investment of a company. During the calculation, external factors like cost of capital, inflation, risk free rate are all excluded.
The internal rate of return method is not subject to the limitations of the net present value method when comparing projects with different amounts invested because it's expressed as a percent rather than the absolute dollar value of present value..
