Answer:
1. $66,000
2. $66,000
Explanation:
The computations are shown below:
1. Before written off:
= Account receivable balance - uncollectible amount
= $70,000 - $4,000
= $66,000
2. After written off:
= Account receivable balance - second year written off amount - uncollectible amount + second year written off amount
= $70,000 - $700 - $4,000 + $700
= $66,000
Answer:
29.71 per machine-hour
Explanation:
Buker corporation has an estimated machine hours of 74,000
The estimated variable manufacturing overhead is 7.67 per-machine hour
The estimated total fixed manufacturing overhead is $1,630,960
The first step is to calculate the estimated overhead cost
= (74,000×7.67) + $1,630,960
= 567,580 + $1,630,960
= $2,198,540
Therefore, the predetermined overhead rate can be calculated as follows
Predetermined Overhead rate= Estimated manufacturing overhead cost/Estimated machine hours allocated
= $2,198,540/74,000
= 29.71 per machine-hour
Hence predetermined overhead rate for the recently completed year was closest to 29.71 per machine-hour
Answer:
Current Price of the Share Stock is $ 37.86 (D)
Explanation:
Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).
Where; Po ⇒Market Value excluding any dividend currently payable
D1= Do(1+g)⇒Expected dividend in one year's time
Ke =Required rate of return by shareholders
g= Dividend growth rate
<u>Calculation</u>
D1 = 5(1+0.06)= $5.3
Hence, Po= 5.3/(0.20-0.06)
Po=$37.86
The share price is expected to reflect the future expected stream of income i.e dividends and capital gains ,discounted at an appropriate cost of capital.
Some of the assumptions of dividend valuation method include but not limited to the following:
- it assumed that investors act rationality and in the same way ;
-the dividend either show growth or no growth;
-the discount rate used exceeds the dividend growth rate.
Answer:
The description of the given question is explained below in the explanation portion.
Explanation:
Risk 1: <u>New customer</u>
- Our advantage comes from developing strong client relationships, that also typically lead to other initiatives with this client.
Risk 2: <u>Poor cost estimate</u>
- It's always research linked towards the building of educational business process, therefore a complicated project consisting of several components including students, instructional personnel, and clients.
Risk 3: <u>Difficult to maintain</u>
- Throughout the long term, disproportionately numerous people will be able to use that same technology in some of these circumstances.
Basic and Routine decisions is the kind of decision-making process that the management follows in the given scenario.
<h3><u>Explanation:</u></h3>
Basic decision are taken when some crisis arises. These decisions require the formulation of new rules with different thinking process.
<u>Example:</u> Location of plant, plant diversification and selection in distribution of channels.
For an organization basic decisions are of strategic aspects and routine decisions are of tactical aspects. Since routine decisions are of repetitive nature and need small consideration based on the decision made. Lilian has to make decision to improve the quality of the product and the soil and also need to rent new farms.
