Answer:
The correct answer is market economy.
Explanation:
A market economy is a type of economy where most of the resources or factors of production are privately owned. The allocation of resources is determined by the market forces and not the government.
The government is not in control of what, how or for whom the goods are produced. This type of economy is directly in contrast with a centrally planned or controlled economy, where the factors of production are owned by the government and the government decides the allocation of resources.
Jamal is using <u>markup percentage</u> to calculate the cost of production and add a percentage.
<h3><u>Explanation:</u></h3>
When the company provides either goods or services, there are factors that need to be considered during pricing. These factors include the profit the company wishes to generate, cost of production and many more. Markup is the difference between goods or services selling price and the its original cost and it is represented as a percentage.
The markup provides the manufacturer or service-provider with profit since it is the amount added to total cost of the goods or services. The significance is to ensure that the company can make a decent gross profit.
Answer:
Sorry I think brainest could do it again sorry
What amount should be recorded as Bad Debt Expense for the current year?
Not yet due:
22,000
Estimated Percentage Uncollectible: 3%
Estimated Amount Uncollectible: 660
Up to 120 days past due:
6500
Estimated Percentage Uncollectible: 14%
Estimated Amount Uncollectible:
910
Over 120 days past due:
2800
Estimated Percentage Uncollectible: 34%
Estimated Amount Uncollectible: 952
Estimated Balance in allowance for doubtful accounts: 2522
Current balance in allowance for doubtful accounts: 1200
Bad Debt Expense for the Year: 1322
Answer:
Aurillo Equipment Company (AEC)
If AEC refinances its high interest bonds, its projected new ROE will be:
= 15.6%
Explanation:
a) Data and Calculations:
Total debt = $200,000
Debt ratio = 80%
Total assets = $250,000 ($200,000/80%)
Equity = $50,000 ($250,000 - $200,000)
Old interest rate on old debt = 14%
New interest rate on refinanced debt = 10%
Total interest = $20,000 ($200,000 * 10%)
Sales revenue = $300,000
EBIT = $33,000
Interest 20,000
Before tax $13,000
Tax = 5,200 (40% of $13,000)
Net income $7,800
ROE = Net income/Equity * 100
= ($7,800/$50,000 * 100)
= 15.6%
