Answer:
c. $3,750
Explanation:
Green Thumb Company provides two years warranty for any product defect. The provision needs to be made for the warranty expense and it should be reported in the balance sheet as warranty liability. The company budgets the warranty expense to be 2% in year of sales which is $2,400 ($120,000 * 2%) and 3% in the year after sale which is $1,350 ($45,000 * 3%). The total warranty liability for the year 2017 which will be reported at December 31, 2017 is $3,750.
Answer:
15%
Explanation:
The computation of the cost of equity in case of no taxes is shown below:
Cost of equity without tax = Cost of equity + (cost of equity - cost of debt) × debt equity ratio
where,
Cost of equity = 12%
Cost fo debt = 9%
And, the debt equity ratio = 1
Now placing these values to the above formula,
So, the cost of equity without considering the tax is
= 0.12 + (0.12 - 0.09) × 1
= 0.12 + 0.03 × 1
= 0.12 + 0.03
= 0.15
= 15%
Answer:
share holder equity
Explanation:
it indicates how much of company's assets have been generated
Answer:
c. 7215
Explanation:
Number of shares of Stock C = 275
Value of Stock C = $52
Number of shares of Stock D = 240
Value of Stock D = $23
The weight of stock of a given stock is defined by the total value of the stock divided by the total value of the portfolio. For stock C:
The weight of of Stock C is 0.7215 or 72.15%.
Answer:
The correct statement regarding the transfer of financial assets such as receivables:
b. II only.
Explanation:
The transfer is not regarded as payment for the debt. Therefore, a liability is recorded for the amount borrowed while the financial asset remains in the records of the transferor until the final settlement. Appropriate disclosures are made in the transferor's financial statements about the security on the financial assets.
