Answer: a. $1,000.0m
Explanation:
Even though the company's enterprise value has no growth, the equity investment of the sponsor will rise from $500.0m when purchased to $1,000.0m when the target for the value of the enterprise is sold for $1500.0m.
The debt was $1000m at year 0 while the remaining $500m was for equity. It should be noted that at the fifth year, equity will be $1,000.0m while the debt will be $500m.
Answer & Explanation:
<u>a.- Revenues: </u>Increase for 3.2 millions
It will be recognize for the entire order, as it was deliveried entirely within the accounting period.
<u>b.- Earnings: </u> Increase for 1.5 millions
The earnings for the business will be the net between the revenues and expenses.
3.2 revenues - 1.7 expenses = 1.5 earnings
<u>c.- Receivables: </u> Increase for 1.8 millions
It will increase for the unpaid portion ofthe order.
<u>d.- Inventory</u> Decrease for 1.7 millions
It will decrease for the entire cost of the order, as it was within this accounting period both, revenues and the expense related to it, will be recognize.
<u>e.- Cash:</u> Increase for 1.4 millions
It will increase for the amount received from the customer. As it was no payment from the business in the transaction.
Answer:
A) $1,050,000
Explanation:
Residual income
= Net operating income - (Total assets*Target rate of return)
= 1,250,000 - (20%*1,000,000)
= $1,050,000
Therefore, The division's Residual Income is $1,050,000.
Answer:
$31,400
Explanation:
Ruby estimates that only 2% of its 2019 credit sales will be written off
Ruby Red has a $12,800 credit balance in its allowance for doubtful accounts
Ruby Red has credit sales of $1,570,000.
Bad debt expense = Credit sales * 2% of its 2019 credit sales
Bad debt expense = $1,570,000 * 2/100
Bad debt expense = $1,570,000 * 0.02
Bad debt expense = $31,400
The level of each variable measured is (1) the type of credit card is Nominal variable or a categorical variable which comes under multiple categories.(2) the amount (in dollars) of each purchase is ration variable it can have both discrete it starts at a fixed zero point.
Explanation:
- There are four levels of measurement, while analyzing data of columns.
- Nominal,Ordinal, Interval and ratio.
- Nominal each row of that particular column has specific identification.
- Nominal can have classification race,gender,ethnicity.
- Ordinal data is based on the ranking system, order or list.
- Numbers are still used arbitrary.
- Interval distance between the numbers Celsius,Fahrenheit and kelvin.
- Ratio data has an absolute zero point non-arbitrary, It is measuring .
- Blood pressure is a common example of ratio data.
