1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DaniilM [7]
3 years ago
14

Sheridan company offers its customers a pottery cereal bowl if they send in 3 boxtops from Sheridan Frosted Flakes boxes and $1.

The company estimates that 60% of the boxtops will be redeemed. In 2021, the company sold 1344000 boxes of Frosted Flakes and customers redeemed 630000 boxtops receiving 210000 bowls. If the bowls cost Sheridan Company $3 each, how much liability for outstanding premiums should be recorded at the end of 2021
Business
2 answers:
Evgesh-ka [11]3 years ago
6 0

Answer:

$117,600

Explanation:

Boxes of Frosted Flakes ×Estimate of Box Tops to be redeemed

1,344,000×60%= 806,000

806,000- 630,000 (Box Tops redeemed) =176,400

Estimate of Box Tops left to be received /Number of Box Tops Needed per bowl

176,400/3= 58,800 Total bowls estimated to be sent to customers in future

58,800 x 2.00 (The Cost of bowls to company was $3 while the cash to be received from customer was $1)

= $117,600 Which will be the total premium liability to be recorded.

SVEN [57.7K]3 years ago
4 0

Answer: $117,600

Explanation: From the above question, In 2021, the company sold 1,344,000 boxes of Frosted Flakes.

1,344,000 /3 = 448,000 pottery cereal bowl is expected to be redeemed in the year.

customers redeemed 630,000 boxtops receiving 210,000 bowls.

estimates that 60% of the boxtops will be redeemed = 1,344,000 * 60% = 806,400 and 630,000 was redeemed = 806,400 - 630,000 = 176,400 unredeemed at the end of the year.

Outstanding liability for 2021 = 176,400/3 = 58,800 x ($3 - $1)

= 58,800 x $2 = $117,600

Note that customers get a pottery cereal bowl if they send in 3 boxtops from Sheridan Frosted Flakes boxes and $1 and the bowl costs $3. To the actual cost estimate of the bowl is $3 -$1 = $2

You might be interested in
Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her cond
kumpel [21]

Answer and Explanation:

Natalie's Gross Income = $10,000

75 + 35 = 110 days

Expenses:

Insurance Expense (75/110) x 1000                 682

Advertising Expense                                        500

Mortgage Interest (75/110) x 3500                  2386

Property Taxes (75/110) x 900                         614

Repairs and Maintenance (75/110) x 650        443

Utilities    (75/110) x 950                                   648

Depreciation (75/110) x 8500                          5795

Until the depreciation expenses the total expenses accumulate to  5273. If we deduct that with the gross income total we get 4727. We can only deduct 4727 from the total portion of 5795 depreciation expense.

Therefore, for AGI deductions we take total of (5273 + 4727) = $10,000

For Natalie's personal deduction of AGI

Mortgage interest (35/110) x 3500                    1114

Property taxes (35/110) x 900                            286

Total personal deduction for AGI                    $1400

4 0
3 years ago
A manager from another restaurant says to you, "I’ve heard that Barcelona has a three-step hiring process. Candidates first have
SpyIntel [72]

Answer:

Both steps give candidates a realistic preview of the job.

Explanation:

When a manager from another restaurant says to you, "I’ve heard that Barcelona has a three-step hiring process. Candidates first have an interview in which Scott does most of the talking, and then they visit Barcelona restaurants and record their impressions. This seems like a lot of work. The basic purpose and logic behind these two steps is to give candidates a realistic preview of the job. With the help of these two steps in which candidates first have an interview with Scott and then visit Barcelona restaurants to get their impressions recorded, candidates can have a realistic, practical and genuine preview of the job. Candidates can come to know about the expectations which they can have from the job and the reality so they will not be surprised and shocked at all if their expectations does not meet the actual job's conditions and specifications.

7 0
3 years ago
How to calculate bank balance if the opening balance was R26041 and the total receipts were R39567​
Helen [10]

Answer:

Answer:the the opening balance is =26041the total receive were=39567the the bank balance if opening=13526.

Explanation:

7 0
2 years ago
ExxonMobil has historically had a very low debt-to-equity ratio within the oil industry, but it recently issued $12 billion in n
Galina-37 [17]

Answer:

The WACC before bond issuance is 3.9% and the WACC after bond issuance is 3.71%

Explanation:

In order to calculate the WACC before bond issuance , we would have to calculate first the cost of equity  using capital asset pricing model .

So Using CAPM we have Rf + Beta x Market risk premium

= 0.5% + 0.85 * 4%

= 3.9% . cost of equity

Therefore WACC before bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)

= 3.9% . WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.

In order to calculate the WACC after bond issuance  we make the following calculation:

WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)

= (3.9% x 0.9) + (2% x 0.1)

= 3.51% + 0.2%

= 3.71%

4 0
2 years ago
Read 2 more answers
When unemployment is high, government policymakers might decide to do which of the following?
dedylja [7]

Answer:

Option C is correct.

Explanation:

The option is C, “Increase government spending on goods and services” is correct because the spending by the government will create new employment opportunities. Therefore, this will decrease unemployment. However, if the government decreases the loan funds in the economy, decreases the spending on goods and services, and rises the taxes then it will raise unemployment in the economy.  

8 0
3 years ago
Other questions:
  • Assignment Background Ellie Johnson Associates surveys American eating habits. The company's 1) Using the General Journal tab, c
    14·1 answer
  • What is the price at which a dealer will sell a bond?
    8·1 answer
  • It is estimated that between 1899 and 1924, about 2.1 million italians left the u.s. while almost ____ million arrived.
    6·1 answer
  • How does buying a plant asset affect general ledger accounts
    14·1 answer
  • You have some property for sale and have received two offers. The first offer is for $89,500 today in cash. The second offer is
    8·1 answer
  • Bonds that may be exchanged for common stock at the option of the bondholders are called
    5·1 answer
  • g If all resources used in the production of a product are increased by 10 percent and output increases by less than 5 percent,
    5·1 answer
  • AYEEEE YALL WANNA JOIN ME IN A KAHOOT AT 12:20 - 1:00?
    5·2 answers
  • The net income for Bramble Corp. for 2022 was $264,300. For 2022, depreciation on plant assets was $65,600, and the company incu
    7·1 answer
  • Which form of bankruptcy allows a debtor with a regular income to extinguish his or her debts from future earnings or other prop
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!