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sdas [7]
4 years ago
15

Swordfish Co. earned $75,000 in 2018 and expects to receive 2/3 of the amount in 2019 and the remainder in 2020. How much revenu

e should Swordfish Co. report in 2018?
Business
1 answer:
Gnoma [55]4 years ago
5 0

Answer:

$75,000

Explanation:

Revenue is said to be earned on the deliver of the goods and services to the party that enjoys the benefits from the good or service.

As long as control of the goods has been transferred, the revenue is earned. Note that this is not when cash has been collected.

As such, if the company earned $75,000 in 2018 but some amounts are to be collected in subsequent years, the revenue earned in 2018 is still $75,000 while the amounts yet to be collected will be recognized in accounts receivable.

You might be interested in
A customer relationship management (CRM) system helps a company to plan, execute, and control all the activities involved in raw
RUDIKE [14]

Answer:

False

Explanation:

A customer relationship management(CRM) system is a technology that a company applies to help manage its customer interactions. The system provides a platform for a business to nurture and cultivate customer relationships. CRM enables a business to organize customer information and streamline its processes.

The traditional applications of CRM systems were in sales, marketing, and customer management. Modern CRM systems have evolved to play a more critical role in almost all departments in a business.

3 0
4 years ago
You are holding a stock that has a beta of 1.39 and is currently in equilibrium. The required return on the stock is 20.47%, and
r-ruslan [8.4K]

Answer: 26.73%

Explanation:

You can calculate the expected return using the Capital Asset Pricing Model (CAPM).

Formula is:

Expected return = Risk free rate + beta * (Market return - risk free rate)

Use the previous figures to solve for the risk free rate:

20.47% = Rf + 1.39 * (16.50% - Rf)

20.47% = Rf + 22.935% - 1.39R

20.47% - 22.935% = Rf - 1.39Rf

-2.465% = -0.39Rf

Rf = -2.465% / -0.39

= 6.32%

New expected return is:

= 6.32% + 1.39 * (21% - 6.32%)

= 26.73%

7 0
3 years ago
Refer to Scenario 15-2. Which of the following statements is most likely to be true? (i) New entrants to the market know they wi
prohojiy [21]

Answer: (i), (iii) and (iv)

Explanation:

PPCo is able to provide the entire needs of the county and and has been in operations for a few years gaining loyal customers and controlling the market. Any company that will want to come in will have to fight them for market dominance and as such will have a smaller market share than PPCo.

As PPCo is meet the demands of everyone in the county, they are most likely experiencing Economies of Scale. This means that they are making more revenue thereby driving total cost down as the fixed costs remain the same but Revenue climbs. This classifies them as a Natural Monopoly because Natural Monopolies experience Economies of Scale and declining average total costs.

3 0
4 years ago
During 2017, Sheridan Company expected Job No. 26 to cost $300000 of overhead, $500000 of materials, and $200000 in labor. Sheri
vovangra [49]

Answer:

The $885,000 was transferred to Finished Goods

Explanation:

The computation of the transferred amount to finished good is shown below:

= Material used + labor cost + overhead cost

where,

Overhead cost = (Expected overhead ÷ estimated labor) × actual labor cost

= ($300,000 ÷ $200,000) × $150,000

= 1.5 × $150,000

= $225,000

The other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $510,000 + $150,000 + $225,000

= $885,000

3 0
3 years ago
The Adams Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimati
tino4ka555 [31]

Answer:

the cost of internal equity is 16.17%

Explanation:

The computation of the cost of internal equity is shown below:

= Yield of the bond + risk premium of the firm

= 10.28% + 4.95%

= 16.17%

Hence, the cost of internal equity is 16.17%

Basically we add the two things so that the cost of internal equity could be determined

5 0
3 years ago
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