The cash realizable value is the sum of
cash you look forward to get from your accounts receivable after deducting the
uncollectable amount. To compute
for the cash realizable value, deduct the uncollectable amount from your gross
accounts receivable. But since there is no uncollectable amount, the
cash realizable value is $16,000.
I don’t know what are you asking, is this multiple choice. Please explain more
Answer: The management requires the overhead rates before the end of the year
Explanation:
The overhead rates are used because the management requires the overhead rates before the end of the year and the predetermined overhead rates are helpful in keeping records very well. The overhead rates are more accurate in results also.
Answer:
$9.40
Explanation:
First we have to calculate the future value of the stock when it starts to pay the $1.40 using the perpetuity formula:
stock price in 7 years = $1.40 / 10.7% = $13.08
Now we have to find the present value of both next year's dividend and the perpetuity:
stock price = ($3.30 / 1.107) + ($13.08 / 1.107⁷) = $2.98 + $6.42 = $9.40