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3 years ago

A. Calculate the total estimated bad debts on the below information.

Business

1 answer:

Rudik [331]3 years ago

5 0

Answer:

The answer is below;

Explanation:

b. Allowance for Doubtful Accounts Dr.$4,000

Bad Debts Cr.$4,000

c. Bad Debt Expense Dr.$5,000

Account Receivable Cr.$5,000

d. 1)Account Receivable Dr.$5,000

Bad Debt Expense Cr.$5,000

2)Cash Dr.$5,000

Account Receivable Cr.$,5000

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Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 8 percent. You also

maks197457 [2]

Answer: $3.46

Explanation:

Given the following :

Current share price (P0) = $90 per share

Required return on stock= 8%

total return on the stock is evenly divided between a capital gains yield and a dividend yield ;

Therefore, Required return on stock= 8% ;

4% capital gain yield + 4% Dividend yield = 8%

Growth rate = 4% = 4/ 100 = 0.04

D1 = D0(1 + g)

D1 = value of next year's Dividend

D0 = current Dividend yield

g = Constant growth rate

D1 = current stock price * g

D1 = 90 * 0.04 = 3.6

D1 = D0(1 + g)

D0 = D1 / (1+g)

D0 = 3.6 / (1+ 0.04)

D0 = 3.6 / 1.04

D0 = $3.46

8 0

3 years ago

You have 40 years left until retirement and want to retire with $5 million. Your salary is paid annually, and you will receive $

Marat540 [252]

Answer:

16.67%

Explanation:

Calculation to determine what percentage of your salary must you save each year

First step is to calculate the Annual savings

Annual savings=$5 million*[(10%-3%)/(1+0.1)^40-(1+0.03)^40]

Annual savings=$5 million*0.07/(1.1^40-1.03^40)

Annual savings=$8333.88

Now let determine the percentage of the salary you must save each year

Proportion of savings=$8333.88/$50,000

Proportion of savings=0.1667*100

Proportion of savings=16.67%

Therefore the percentage of your salary that you must save each year is 16.67%

5 0

2 years ago

Clam gulch is a very popular clamming beach in alaska. on good low tides, clammers can easily gather 60 clams (the state limit).

Ahat [919]

The way economists would probably explain the wastage of this clam resource is by saying that clams are free goods and are therefore subject to the tragedy of the commons effect. The tragedy of the commons effect is a theory in economics, postulated by the Victorian economist William Forster Lloyd.

The tragedy of the commons effect describes a condition within a shared-resource system where each user act freely according to their own self-interest, but their collective actions ends in the depletion or spoilage of that resource, thus having a negative impact on the common good of all users. In this case, commons is taken to refer to the clam resources.

6 0

2 years ago

Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm’s fixed

julia-pushkina [17]

Answer:

- BEP in unit: 4,000 units;

- In case fixed cost increases by 10%, New BEP in unit: 4,400 units.

- Net income: 1,000,000p.

- BEP in units if sale price to decrease : 8,000 units => Price change should not take place as it moves the company from making 1 million peso profit to a loss as sales in units (1,200 + 5,000 =6,200) is lower than break-even point ( 8,000 units).

Explanation:

Please find detailed calculations as below:

- BEP in unit is calculated as Fixed cost/ Margin earned by one product = 4,000,000/(3,000 - 2,000) = 4,000.

- New BEP in unit is calculated as New Fixed cost/ Margin earned by one product = (4,000,000 x 1.1)/(3,000 - 2,000) = 4,400.

- Net income: Sales - fixed cost - variable cost = 3,000 x 5,000 - 4,000,000 - 2,000 x 5,000 = 1,000,000 p

- BEP in units if sale price to decrease: Fixed cost/ Margin earned by one product = 4,000,000/(2,500 - 2,000) = 8,000.

4 0

2 years ago

!. without asking, you help a coworker who is burdened by multiple and fast approaching deadlines.

PtichkaEL [24]

I believe it is C, hope this helps!!

8 0

2 years ago