Answer:
b. A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800
Explanation:
Parker Company uses the perpetual inventory system. It bought merchandise on account from Beige Inc, invoice no. 342, $20,000; terms 1/15, n/30; dated June 25; FOB San Francisco, freight prepaid and added to the invoice, $1,800 (total $21,800).
The following journal entries records this purchase transaction: A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800
<u>The reason is that with a perpetual inventory system, transportation costs are added directly to the inventory balance</u>
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Answer:
$819.98
Explanation:
After making downpayment, the remaining amount is $145,000 - 15000 = $130,000
Using financial calculator:
PV = 130,000
n = 30 years = 360 months
i/r = 6.5%/year = 0.54% / month
FV = 0
PMT = ? (Monthly payment = ?)
--> Monthly payment = $819.98
Answer:
a. Expected Return = 16.20 %
Standard Deviation = 35.70%
b. Stock A = 22.10%
Stock B = 29.75%
Stock C = 33.15%
T-bills = 15%
Explanation:
a. To calculate the expected return of the portfolio, we simply multiply the Expected return of the stock with the weight of the stock in the portfolio.
Thus, the expected return of the client's portfolio is,
- w1 * r1 + w2 * r2
- 85% * 18% + 15% * 6% = 16.20%
The standard deviation of a portfolio with a risky and risk free asset is equal to the standard deviation of the risky asset multiply by its weightage in the portfolio as the risk free asset like T-bill has zero standard deviation.
b. The investment proportions of the client is equal to his investment in T-bills and risky portfolio. If the risky portfolio investment is considered of the set proportion investment in Stock A, B & C then the 85% investment of the client will be divided in the following proportions,
- Stock A = 85% * 26% = 22.10%
- Stock B = 85% * 35% = 29.75%
- Stock C = 85% * 39% = 33.15%
- T-bills = 15%
- These all add up to make 100%
Reasons for shifting production to other countries John Deere is a global leader in the tractor market and its strategic objective is to expand rapidly outside of North America. One of the ways to expand globally is to make the product closer to the target market
Offshoring is the practice of a firm moving its service and production operations to a different nation. A corporation with American roots, John Deere is well recognised for assembling and producing agricultural tractors.
Samuel Allen, the company's CEO, predicts that Offshoring the company's tractor manufacture overseas will boost overall sales to $50 billion by 2018, with half of that amount coming from nations other than the US and Canada. Offshoring production would aid in growing the business to a worldwide scale in addition to boosting revenue.
Due to differences in time zones, the company's production processes and services would be available around the clock. The cost of manufacture would also be reduced by offshore tractor production.
The business would stop paying the costs of transporting tractors from the base production site to foreign nations. The need to exert more control, an effort to reduce risks, and a desire to concentrate on business development are some further justifications for outsourcing.
To learn more about offshoring here,
brainly.com/question/22541228
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Explanation:
The adjusting entry is as follows
On January 31
Unearned revenue A/c Dr $3,500
To Magazine subscription revenue A/c $3,500
(Being the unearned revenue is recorded)
The computation is shown below:
= Sale value of annual subscriptions ÷ total number of months in a year
= $42,000 ÷ 12 months
= $3,500
