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4 years ago

When a purchase on account is made the invoice becomes a debit memo?

1 answer:

6 0

When a purchase on account is made, the invoice becomes a debit memo. The account receivable is normally documented through invoice which is issued to the customer who is buying on credit. When purchasing on an account, the balance of the invoice becomes a payable, that is, a debt.

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You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect

dedylja [7]

Answer:

Amount investment in Sock Y = - $126,000

Beta of portfolio = 1.636

Explanation:

Data provided in the question:

Total amount to be invested = $140,000

Stock X Y

Expected return 14% 10%

Beta 1.42 1.18

Expected return of portfolio = 17.6%

Now,

let the weight invested n stock X be W

therefore,

Weight of Stock Y = 1 - W

thus,

( W × 14% ) + (1 - w) × 10% = 17.6 %

14W + 10% - 10W = 17.6%

4W = 7.6

W = 1.9

Therefore,

weight of Y = 1 - 1.9 = -0.9

Thus,

Amount investment in Sock Y = Total amount to be invested × Weight

= 140,000 × ( - 0.9 )

= - $126,000 i.e short Y

Beta of portfolio = ∑ (Beta × Weight)

= [ 1.42 × 1.9 ] + [ 1.18 × (-0.9) ]

= 2.698 - 1.062

= 1.636

6 0

3 years ago

On January 1, 2016, Miller Corporation had retained earnings of $8,000,000. During 2016, Miller reported net income of $1,500,00

Papessa [141]

Answer:

Miller's retained earnings on December 31, 2016 is $9,000,000.

Explanation:

Miller's retained earnings on 31 December 2016 = retained earnings on January 1, 2016 + net income - declared dividends

= $8,000,000 + $1,500,000 - $500,000

= $ 9,000,000

Therefore, Miller's retained earnings on December 31, 2016 is $9,000,000.

4 0

3 years ago

Kluth Corporation has two manufacturing departments--Molding and Customizing. The company used the following data at the beginni

Fofino [41]

Answer:

Selling price for Job C $93,300

Selling price for Job M $78,204

Explanation:

The computation of the selling prices for Job C and for Job M is given below:

But before that following calculations need to be done

Departmental overhead rates:

Molding 6.50 (2.5 + (36000 ÷ 9000))

Customizing 6.70 (3 + (13320 ÷ 3600)

Particulars Job C Job M

Direct materials $16,700 $9,900

Direct labor cost $23,400 $10,300

Overhead applied:

Molding $17,550 $40,950

(2700 × 6.50) (6300 × 6.50)

Customizing $20,100 $4,020

(3000 × 6.70) (600 × 6.70)

Total manufacturing cost $77,750 $65,170

Add: Markup at 20% $15,550 $13,034

Selling price $93,300 $78,204

7 0

3 years ago

Durango, Inc. purchased a parcel of land for $450,000. It paid attorney fees of $3,000 to verify title to the land. In addition,

Crank

Answer:

D. $460,500

Explanation:

Given that

Cost of parcel of land = 450000

Legal fees = 3000

Broker's fees = 7500

Therefore,

Amount recorded as cost of parcel of land is

Cost of parcel of land + legal fees + brokers fee

= 450000 + 3000 + 7500

= $460,500

When purchasing land, fees like commissions, legal fees, bank fees, title fees and other expenses added before the land can be used are considered as part of the land's cost. Hence the answer.

8 0

3 years ago

Read 2 more answers

The following data are available relating to the performance of Wildcat Fund and the market portfolio: Wildcat Market Portfolio

alekssr [168]

Answer:

50.0%

Explanation:

The computation of the information ratio is as follows

Information ratio = Alpha ÷ residual standard deviation

where,

Alpha is

= Average rate of return - required rate of return

The average rate of return is 18%

And the required rate of return is

= Risk-free rate + Beta × (Market rate of return - Risk-free rate)

= 7% + 1.25 × (15% - 7%)

= 17%

So, the alpha is

= 18% - 17%

= 1%

Therefore the information ratio is

= 1% ÷ 2%

= 50.0%

5 0

3 years ago