Answer:
June 3
Account Receivable $7,000 (debit)
Service Revenue $7,000 (credit)
June 8
Cash $4,500 (debit)
Discount allowed $500 (debit)
Accounts Receivables $5,000 (credit)
November 15
Bad Debt $1,500 (debit)
Accounts Receivables $1,500 (credit)
Explanation
The above transactions must be adjusted as they affect our transactions at the reporting date. Remember to grant the cash discount on early settlement of the payment made on June 8. The policy of sales on account is on the terms of 2% cash discount on payments made within 10 days.
Answer:
We know the company's ROE and plowback ratio, and we can use these 2 figures to find out the future growth rate of the company. In order to do this we need to multiply the ROE by plowback ratio.
0.18*0.7=0.126= 12.6%
We can also find the company's dividend, by (1- plowback ratio) we get how much percentage of the earning is the company distributing as dividends.
(1-0.7)= 0.3 which is the dividend payout ratio
Dividend= Dividend payout ratio *EPS
0.3*6=1.8
This dividend is the dividend which the company will pay in the upcoming year after which they will have a constant growth rate, so in order to find the intrinisc value now, we need to find the intrinsic value of the stock will be in the upcoming year using the upcoming years dividend and then discount that value by the required return of the stock to get the current years intrinsic value.
Now we can use the DDM formula to find the intrinsic value of the stock in the upcoming year.
The formula for DDM is D*(1+G)/(R-G)
D= 1.8
G= 0.126
R=0.14
1.8*(1+G)/0.14-0.126
=144.77
Discount it to find the present value
144.77/1.14
=128.5
The intrinsic value of the stock should be 128.5
Explanation:
Explanation:
The adjusting entry is shown below:
Supplies expense A/c Dr $5,130
To Supplies A/c $5,130
(Being supplies account is adjusted)
The supplies expense is computed below
= Purchase of supplied made - supplies still on hand
= $7,160 - $2,030
= $5,130
We simply debited the supplies expense account and credited the supplies account
Answer: Vroom and Yetton's normative decision model.
Explanation:
The Vroom–Yetton normative decision model is a situational leadership theory of industrial and organizational psychology that was developed by Victor Vroom, in collaboration with Phillip Yetton and later with Arthur Jago. The situational theory argues the best style of leadership is contingent to the situation.
Regarding decision making, the Vroom-Yetton model suggests that being autocratic, seeking advice, considering alternative approaches before a decision is made, informing a group on an issue, and letting that group develop the solution without forcing your own ideas are all important at times.
Answer:
C. Individuals
Explanation:
Indivudals do not own the factors of production.
