Falling prices send signals to consumers to what?

"Stimpleton Company engages in the following cash payments: Purchase equipment $ 3,900 Pay rent 500 Repay loan to the bank 4,300

DENIUS [597]

Answer:

csh used for operatng activities 1,600

Explanation:

the operatng activities will be the cash outflow for business day-to-day operation

the rent is an operational cost, as the rented space is used daily for the business.

the workers salaries are operating activities, they work and provide their work to make the business operate

The equipment is an investment activity. the equipment will generate cash over the course of his useful life, is an investing activity. It decreases cash now, to increases in the future.

The Loan is a financing activity, the company is paying a loan which in a previous period provide cash.

So, total operating activities:

rent 500

salaries 1,100

total 1,600

6 0

3 years ago

Hannah, Greta, and Winston own the stock in Redpoll Corporation (E & P of $900,000) as follows: Hannah, 600 shares; Greta, 4

LenaWriter [7]

Answer:

A. Long-term capital gain of $185,000

Explanation:

4 0

3 years ago

Record transactions related to accounts receivable (LO5-3, 5-4, 5-5).The following information applies to the questions.The foll

andrew-mc [135]

Answer:

The Underwood Corporation

Journal Entries

June 12, 2021:

Debit Accounts Receivable $41,000

Credit Service Revenue $41,000

To record provision of services to customers on account

Sept 17, 2021:

Debit Cash Account $25,000

Credit Accounts Receivable $25,000

To record cash receipt from customers

Dec. 31, 2021:

Debit Uncollectible Expense $7,200

Credit Allowance for Doubtful Accounts $7,200

To record allowance for doubtful accounts.

March 4, 2022:

Debit Accounts Receivable $56,000

Credit Service Revenue $56,000

To record provision of services to customers on account.

May 20, 2022:

Debit Cash Account $10,000

Credit Accounts Receivable $10,000

To record cash receipts from customers.

July 2, 2022:

Debit Allowance for Doubtful Accounts $6,000

Credit Accounts Receivable $6,000

To record write-off of uncollectibles.

Oct. 19, 2022:

Debit Cash Account $45,000

Credit Accounts Receivable $45,000

To record cash receipts from customers.

Dec. 31, 2022:

Debit Uncollectible Expense $3,750

Credit Allowance for Doubtful Accounts $3,750

To bring the allowance for doubtful accounts to $4,950

b) Calculation of Net Realizable Value of Accounts Receivable:

2021 2022

Accounts Receivable $16,000 $11,000

Less: Allowance for Uncollectible Accounts $7,200 $4,950

Net Realizable Value $8,800 $6,050

Explanation:

a) Services provided to customers on account increase the accounts receivable and the Service Revenue accounts by the same amount.

b) Cash Receipts from customers on account decrease the accounts receivable and increase the Cash Account by the same amount.

c) Allowance for Uncollectible (Doubtful) is a provision made to cover the risk of credit sales. The account is a contra account to the Accounts Receivable and is increased or reduced accordingly depending on the estimated allowance. Write-off of debts deemed uncollectible is done in this account.

d) The net realizable value of accounts receivable is the balance of accounts receivable less the allowance for uncollectible at the end of the period.

6 0

3 years ago

Account A pays 13.8% interest per year. Account B pays 13.5% interest per year, compounded monthly. Account C pays 13% interest

alexandr1967 [171]

Answer:

1. Future value (FV) = $4,717

2. Future value (FV) = $5,189

3. Future value (FV) = $5,237

Explanation:

Requirement 1

Assume that the present value of the investment is $1,000.

We know, Compounding yearly,

FV = PV*(1 + i)^n

Given,

Present value (PV) = $1,000

Interest rate, i = 13.8% = 0.138

number of periods, n = 12 years

We have to calculate the future value of the investment.

Therefore,

FV = $1,000 × $(1 + 0.138)^{12}$

or, FV = $1,000 × $1.138^{12}$

or, FV = $1,000 × 4.7174

Therefore, Future value (FV) = $4,717

Requirement 2

Again, Assume that the present value of the investment is $1,000.

We know, Compounding monthly,

FV = PV × $(1 + \frac{i}{m})^{m*n}$

Given,

Present value (PV) = $1,000

Interest rate, i = 13.8% = 0.138

number of periods, n = 12 years

compounding period (monthly), m = 12

We have to calculate the future value of the investment.

Therefore,

FV = $1,000 × $(1 + \frac{0.138}{12})^{12*12}$

or, FV = $1,000 × $(1 + 0.0115)^{144}$

or, FV = $1,000 × $1.0115^{144}$

or, FV = $1,000 × 5.1890

Therefore, Future value (FV) = $5,189

Requirement 3

Again, Assume that the present value of the investment is $1,000.

We know, Compounding daily,

FV = PV × $(1 + \frac{i}{m})^{m*n}$

Given,

Present value (PV) = $1,000

Interest rate, i = 13.8% = 0.138

number of periods, n = 12 years

compounding period (daily), m = 365

We have to calculate the future value of the investment.

Therefore,

FV = $1,000 × $(1 + \frac{0.138}{365})^{365*12}$

or, FV = $1,000 × $(1 + 0.000378)^{4,380}$

or, FV = $1,000 × $1.000378^{4380}$

or, FV = $1,000 × 5.2367

Therefore, Future value (FV) = $5,237

4 0

4 years ago

A company's pretax cost of debt:

sertanlavr [38]

Answer:

D.

Explanation:

Firstly, we need to keep in mind when it comes to cost of capital (debt or equity) is that it have to be incremental cost. Use bond yield to maturity rather than other yield to estimate cost of debt.

Let go through each of answer option one by one:

a. is based on the current yield to maturity of the company's outstanding bonds. => include both old bonds and recently-issue bonds => not incremental cost => False

b. is equal to the coupon rate on the latest bonds issued by the company. => Coupon rate is not relevant => Fasle

c. is equivalent to the average current yield on all of a company's outstanding bonds. => Current yield is not relevant => Fasle

d. is based on the original yield to maturity on the latest bonds issued by a company. => Meet all requirement => True

3 0

4 years ago