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mina [271]
3 years ago
6

Johnson, Inc. has just ended the calendar year making a sale in the amount of $10,000 of merchandise purchased during the year a

t a total cost of $7,000. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The net profit and cash flow from this sale for the year are
Business
1 answer:
Alexxx [7]3 years ago
7 0

Answer:

The net profit = $ 3,000

Cash flow from the sale for the year = - $ 7,000

Explanation:

Given:

Total sales = $ 10,000

Total cost of the merchandise purchased = $ 7,000

Therefore, the net profit = Total sales - Purchase cost of the merchandise

or

The net profit = $ 10,000 - $ 7,000

ot

The net profit = $ 3,000

Since,the cash is not collected yet,

Therefore, the cash flow = account receivable = - $ 7,000

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Paula earns $40,000 per year and rides her bicycle to work. There is a 1% chance that she will break her leg in the next year an
Hoochie [10]

Answer:

$40

Explanation:

The computation of the premium pay for the next year is shown below:

= Estimated medical bills × given percentage for next year

= $4,000 × 1 %

= $40

By multiplying the estimated value of medical bills with the next year given percentage, the premium for the next year can come

All other information that is given in the question is not relevant. Hence, ignored it

8 0
3 years ago
When comparing absorption costing and variable costing, if units produced are units sold, what is the effect on net operating in
11111nata11111 [884]

Answer:

The Net Operating income will be the same for both methods.

Explanation:

Net Operating income under absorption costing and variable costing methods usually differ because of existence of inventory.

Fixed overheads are deferred in Inventory when using absorption costing. Meaning that a higher income is obtained under absorption costing than variable costing when there is inventory and a lower income under absorption costing than variable costing.

When units produced are units sold, there is no inventory. Therefore, the Net Operating income will be the same for both methods.

8 0
3 years ago
Earl was known for driving 30 miles just to save a dollar on the price of case of his favorite carbonated beverage. Earl perceiv
Marianna [84]

Answer:

Money Paid

Overall Sacrifice

Explanation:

The two major dimensions of pricing are Monetary and Non- Monetary pricing.

Monetary pricing is the liquid asset like cash that is spent to acquire goods and services while the non monetary are other costs apart from money like time , stress , distance that it costs to acquire an item .

The individual perception of pricing has a way of affecting its choice when it comes to purchasing.

Earl did not consider the cost of stress in travelling 30 miles in order to save a $1 in his purchase decision as his mindset is programmed to the price paid being the real price  while most other customers considers the sacrifice involved before making a purchase decision.

3 0
3 years ago
If your risk-aversion coefficient is A = 4.4 and you believe that the entire 1926–2015 period is representative of future expect
tamaranim1 [39]

Answer:

=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.

=> fraction to equity = 0.5518 = 55.18%.

Explanation:

So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.

The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;

The first step is to determine or Calculate the value of fraction to equity.

Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.

= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.

Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .

8 0
3 years ago
Which of the following is an INCORRECT statement regarding the right to stop delivery of goods in​ transit? A. If the lessee rep
Verizon [17]

Answer:

B. The lessor does not have the right to stop delivery in transit due to the​ lessee's breach of the lease​ agreement; instead, the lessor must deliver the goods to the lessee in spite of the​ breach, and then sue the lessee for damages.

Explanation:

During the transit of goods, if the lessor learns of a breach of the lease agreement, he has every right to stop the delivery of the goods in transit by notifying  the goods carrier or bailee. Since the carrier of the goods reports directly to the lessor, once he receives instructions from the lessor to stop delivery of goods, and he still has sufficient time, the delivery should be stopped.

Once the goods are reclaimed, the lessor can then decide to sue to recover damages. He can also, decide to cancel the contract at that point

7 0
3 years ago
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