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mina [271]
4 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]4 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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3 years ago
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You currently own shares in Buckeye Mutual Fund (BMF). Your broker calls and recommends buying shares in a small-capitalization
GarryVolchara [31]

Answer:

Option D is the correct option

Explanation:

To find the optimal fund to combine with risk free rate of return, we will use Coefficient of variation,

Coefficient of variation(CoV) = Standard Deviation/Expected Return

CoV of Buckeye = 14%/20% = 0.7

CoV of Wolverine = 11%/12% = 0.9167

So, higher the CoV higher the risk, we will take Buckeye to combine with Risk Free Return.

Hence, Option A

- Required target return of portfolio = 22%

Risk Free return = 8%

Buckeye Return = 20%

Let the weight of Buckeye be X ,& weight of risk free be (1-X)

Required return = (WRF)*(RRF) + (WB)*(RB)

22 = (1-X)(8) + (X)(20)

22 = 8-8X + 20X

14 = 12X

X = 1.17

SO, weight of Buckeye is 1.17 or 117%

while weight of Risk free is -0.17 (1-1.17) or -17%

Hence, ans is OPTION D

7 0
3 years ago
Mostert Music Company had the following transactions in March: Sold music lessons to customers for $12,050; received $6,650 in c
bezimeni [28]

Answer:

Under Cash Basis all transactions for which cash is exchanged whether paid or received is accounted for.

Cash Basis Income Statement

Sales Revenue = $6,650

Customer Deposits = $4,550

Total Revenue = $11,200

Less: Expenses:

Wages              = ($700)

Net Income = $10,500

Under Accrual basis, the transactions are recorded as to the period they relate, and it is not necessary to exchange cash for the same.

Accrual Basis Income Statement

Sales Revenue = $12,050

Total Revenue = $12,050

Expenses

Wages = ($700)

Utilities = ($330)

Total Expenses = ($1,030)

Net Income = $11,020

7 0
4 years ago
In the context of the strategies for reaching global markets, a(n) _____ is a firm that is offered the right to produce and mark
VladimirAG [237]

A licensing firm is a firm that is offered the right to produce and market another firm's products if it agrees to specific operating requirements.

<h3>What is a licensing firm?</h3>

A firm, which does not have a product of its own, but specializes in production and marketing of its client firms' products by the way of obtaining a licensed agreement, it is known as a licensing firm.

For example, in India, Varun Beverages Ltd. is a licensing firm that has been offered the rights to produce and market the products for PepsiCo.

Hence, the significance of a licensing firm is aforementioned.

Learn more about a licensing firm here:

brainly.com/question/1236640

#SPJ1

4 0
2 years ago
Why did Guardbark want people to not disturb the trees?
vichka [17]

Answer:

Why did the Guardbark want people to leave trees alone? ... He wanted the trees to be left alone because they give us oxygen and are the habitats of lots of diverse species.

I found this answer on google so I hope this helps.

3 0
3 years ago
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