i'm confused what your trying to say here?
Answer:
A. dr. Bad Debt Expense 3,000 and cr. Allowance for Doubtful accounts 3,000
Explanation:
Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.
Closing Value of the Allowance for Doubtful Accounts will be as follow
Closing Balance = $100,000 x 5% = $5,000
As Allowance for Doubtful Accounts already have credit balance of $2,000, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $5,000 at the year end.
Adjustment Value = $5,000 - $2,000 = $3,000
We are given
fixed cost, F = $6,660,000
sales mix:
65% sporting goods
35% sports gear
margin ratio:
30% sporting goods
50% sports gear
Now, we solve for the break even point in dollars. We use the formula
x = total fixed cost / [ price - total variable cost/price ]
Using the given values
x = 6660000 / [0.65(0.3)(6660000) + .35(0.5)(660000)]/ [(0.3)(6660000) + (0.5)(660000)]
x = $14,400,000
The breakeven point is $14,400,000
This is the sales when the revenue is just equal to the total cost of producing the products resulting to zero profit.
Answer: See explanation
Explanation:
a. The Law of Demand states that when the price of a good rises, then the Quantity Demanded will (fall)
b. The Law of Demand states that when the price of a good falls, then the Quantity Demanded will (rise).
According to the law of demand, when there's an increase in the price of a product, there'll be a reduction in the quantity of the good that will be demanded by the consumers and vice versa.
Answer:
1. $5.3
2. 17.95
Explanation:
1. Earning per share today = $5.1
Earning growth in one year = 4%
So, the EPS one-year ahead:
= Earning per share today × (1 + Earning growth in one year)
= 5.1 × 1.04
= $5.3
2
. Market price one-year ahead:
= Current price × (1 + expected return on Parador stock)
= 78 × 1.22
= $95.16.
P/E Ratio = Market price per share ÷ Earning per share
P/E Ratio = 95.16 ÷ 5.3
= 17.95
