Santa claus enterprises has 87,000 shares of common stock outstanding at a current price of $39 a share. the firm also has two b
ond issues outstanding. the first bond issue has a total face value of $230,000, pays 7.1 percent interest annually, and currently sells for 103.1 percent of face value. the second bond issue consists of 5,000 bonds that are selling for $887 each. these bonds pay 6.5 percent interest annually and mature in eight years. the tax rate is 35 percent. what is the capital structure weight of the firms debt?
Receivables means deptors. These are obligations that has been honoured and value given, but you're yet to get cash. Receivables are seen as such. So the things you've given value to and you're yet to receive cash or payment for are receivables.
So when receivables are collected, then the asset account Cash is increased.
On the Delivery of goods or Services, the company debits Accounts Receivable and credits what is known as Sales Revenues or Service Revenues. When an account receivable is collected say 30 days later, the account receivables is reduced and the Cash or bank account is increased.
The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market at a price of $0.40 per pound: c. there will be a shortage of the good.
The correct answer is - c. there will be a shortage of the good.
Reason -
At the equilibrium price, the demand = supply
If the price is increased by the equilibrium price then, there are more customers(i.e. quantity demanded is increase ) and there is shortage of goods (i.e quantity supplied will decrease)
So, the correct option is - c. there will be a shortage of the good.
