Answer: Undercapitalization
Explanation:
Undercapitalization is defined as the situation where a person or entity of any kind does not have sufficient funds or capital to run their business and pay the costs it has. This type of situation usually occurs when the business is not selling the necessary amount of products or services to generate the amount of income necessary to meet all the payments it has.
When an entity or business is undercapitalization, in many cases they have had to take measures such as downsizing, fewer materials to create the product, or ultimately, if none of this works, having to close the business.
Answer: The average collection period of the receivables in terms of days was 73 days.
Explanation:
Given that,
Accounts Receivable at the beginning of the year = $390,000
Accounts Receivable at the end of the year = $410,000
Net credit sales during the year = $2,000,000
Average collection period of the receivables in terms of days:
Average accounts receivables = 
= 4,00,000
Net credit sales = 
= 5
∴ Accounts receivable days = 
= 73 days
The average collection period of the receivables in terms of days was 73 days.
Answer:
$3,225
Explanation:
The computation of the amount reported as an ending inventory is shown below:
Date Particulars Units Cost Amount
1 -1 Op Balance 1,000 $1 $1,000
1 -7 Purchases 600 $3 $1,800
Total 1,600 $1.75 $2,800
($2,800 ÷ 1,600 units)
1 -20 COGS 900 $1.75 $1,575
Total 700 $1.75 $1,225
1 -25 Purchases 400 $5 $2,000
Ending inventory 1,100 $2.9318 $3,225
($3,225 ÷ 1,100 units)
We simply added the purchase units with the opening balance and deduct the cost of goods sold units from the opening balance so that the correct ending inventory amount could arrive
Answer:
The price of a Dinner= $6.22
Explanation:
<em>Mark-up is the proportion of the product cost which is expected to be made as profit. In other words, it is profit expressed as a percentage of product cost.</em>
To account for the spoilage rate of 10%, $3.50 unit cost would be consider as 90% of the cost. Thus, 100% of the cost would be given as follows:
Dinner cost = 100/(100-10)× 3.50= 3.89
The price of a Dinner = product cost + 60% of product cost
The price of a Dinner = 3.89 + 60%*3.89= $6.22
The price of a Dinner= $6.22
Answer:
could likely result in a notable loss of sales to competitors
Explanation:
In the case of the perfect competitive market wheen the price of the firm is increased from $179 to $199 as compared to the prevailing market price so this means that there should be the loss with respect to the sales for the competitors or rivalrs as this would result the firm to lose its overall shares to its rivalry
Therefore the above statement should be considered true
