Answer:
$1,280,000
Explanation:
The net realizable value of accounts receivable after the net adjustment is computed as
= Ending balance in Accounts receivables - Uncollectible ageing accounts receivables
Given that;
Ending balance in Accounts receivables = $1,400,000
Uncollectible ageing accounts receivables = $120,000
Net realizable value of the accounts receivables after the net adjustment = $1400,000 - $120,000
= $1,280,000
Answer:
$10 profit
Explanation:
In this question, we are asked to calculate the profit or loss to a short position.
Firstly, we identify that the spot price of market index is $900.
Now, a three months forward contract equals a value of $930.
Raising the index to $920 at the expiry date is obviously a profit to the short position.
To calculate the profit here, we simply subtract the index at expiry date from the three months forward contract.
Mathematically, this is equal to $930-$920 = $10 profit
Answer:
ii. Her accounting profit was $150,000
iii. Her economic profit was $50,000
Explanation:
The computation is shown below:
For accounting profit, it is
= Total revenues - total expenses i.e explicit cost
= $250,000 - $100,000
= $150,000
And, for economic profit
= Total revenues - total cost i.e explicit and implicit cost
= $250,000 - $100,000 - $100,000
= $50,000
Hence, the second and third options are correct
