Answer:
Account Receivable Ratio = 10
Explanation:
Account Receivable Turnover Ratio:
The Account Receivable Turnover Ratio is an accounting measure that indicates the effectiveness of company's ability to collect its receivables from its customers.
A high turnover ratio represents good credit policy and aggressive collections department with good portfolio of customers.
A low turnover ratio indicates excess amount of old receivables being tied up in working capital.
Formula: Net Credit Sales ÷ (Opening receivable + closing receivable/2)
Receivable Turnover Ratio = $ 1,450,000 ÷ ( $200,000+$90,000/2)
=$1,450,000 ÷ $145,000
= 10
Answer:
Rate of return = 6.64%
Explanation:
Annual coupon rate = 7.5% = 0.075
Face value = 1,000
Coupon payment = 1,000*0.075 = 75
YTM = 8%
Years = 20
Price of the bond = PV(8%, 20, 75, 7.5%)
Price of the bond = $950.91
Rate of return = Selling price + Coupon payment received - Purchase price / Purchase price
Rate of return = $939.05 + $75 - $950.91 / $950.91
Rate of return = $63.14 / $950.91
Rate of return = 0.0663996
Rate of return = 6.64%
Answer:
The ending balance of Allowance for Bad Debts account is $800
Explanation:
The computation of the ending balance of allowance for bad debt is shown below:
= Credit sales × uncollectible rate
= $40,000 × 2%
= $800
The estimated amount would be considered as an allowance for bad debts i.e $800, So no other amount would be come while computing the ending balance of Allowance for Bad Debts account.
However, the other information which is given in the question is not relevant. Hence, ignored it
Answer:
Market Segmentation
Explanation:
Market Segmentation is an efficient tool used in catering for the wants,needs,etc. for buyers classified under sub-group (age,income,behavior)
Answer: (D).
According to the real business cycle, "changes in the level of technology are the main causes of inflation and fluctuations in real GDP".
Explanation:
The "real business cycle" states that an economy during its lifetime will go through all the various stages of a business cycle which include; expansion, peak, recession, depression, trough and recovery. There will be periods where economic activities will be high and other periods when they will be low.
According to the real business cycle, technological innovation or shocks, which determine the extent to which inputs are converted to outputs, are responsible for the changes in the economy (such as inflation and real GDP fluctuations).
