1. most businesses that desire fewer customer probably fall between these categories:
- Those who do not have enough resource/employee to maintain the cutomers
- Those who sell rare collectibles
2. It really depended on the type of business. If the business focus on obtaining high-end/wealthy customers and maintain highest quality of service, they may prefer lower amount of customers
Answer:
Revised balance = $8000
Explanation:
Milo Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $ 150 comma 000, and management estimates 4% will be uncollectible.
Milo Company's balance of Allowance for Uncollectible Accounts after adjustments, was $ 5 comma 000.
The following year, Milo Company wrote off $ 3 comma 000 of old receivables as uncollectible.
The Allowance account balance now will be:
Amount of Uncollectible Accounts for the year = 4% x $150,000 = $6000
Previous balance is $5,000 less amount written off $3000 = $2000
Revised balance = $6,000 + $2000 which is $8000
Answer:
The price of this stock today is $4.275
Explanation:
The constant growth model of the DDM approach will be used to calculate the price of this stock today. However, as the dividends are falling by a consatnt percentage every year, the growth rate taken will be negative i.e. -5%.
The formula for the price of a stock using this model is,
P0 = D0 * (1+g) / r - g
Thus,
P0 = 0.9 * (1 - 0.05) / 0.15 +0.05
P0 = $4.275
Answer:
The most likely outcome would be that Lois will still have to sell Stew the house
Explanation:
The most likely outcome would be that Lois will still have to sell Stew the house. This is mainly because Lois accepted Stew's offer of $100,000 and Stew already fulfilled part of the agreement. By simply paying the $10,000 that he left Stew he has already fulfilled part of his side of the agreement which solidifies the agreement and makes it legally binding. Therefore, he would most likely win a court case if Lois decides to back out of the agreement.
Answer:
Send some positive confirmation requests
Explanation:
This is an inquiry made by an auditor to a third party, the not audited party, that requires a formal response. It is done regarding whether the third party, residents' delinquent real estate taxes, match those that Cooper is examining.
Due to Cooper is auditing the financial statements of a small rural municipality, they could not require a negative confirmation, where the third party only has to answer if the records match or not.