Answer:
d. 15.09
Explanation:
425,000 sales
52,500 AR
year of 365 days
<u>Days Sales Outstanding</u>
<u>Average days late</u>
45.09 - 30 = 15.09
in average customer pays within 45 days.
That is 15.09 days above the allowed credit period.
Net income for the year was $161,511. The beginning net position balances are net investment in capital assets, $585,400; restri
cted, $5,000; and unrestricted, $254,790. New golf carts were leased. The present value of the lease liability is $200,000. A principal payment of $40,000 was made during the year, and amortization of the leased asset totaled $37,500. Lawn edging equipment with a carrying value of $6,100 was sold for $6,300. A new lawn mower was purchased for $75,000. At the end of the year, a $25,000 note associated with the machine remains outstanding. Depreciation of the mower was $7,500. Additional depreciation totaled $30,000.
Required
Prepare the net position section of Shelburne’s statement of net position.
Required
Prepare the net position section of Shelburne’s statement of net position.
1 answer:
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Answer:
Explanation:
a)We find the portfolio weights first. For a two security portfolio
x2 = 0.625 and x1 = 0.375
Then
rp = x1r1 + x2r2
rp = (0.375 ´ 0.06) + (0.625 ´ 0.14)
= 0.11
= 11.0%
Hence, he can improve the expected rate of return without any change in the risk of the portfolio.
b)
The expected return is:
rp = x1r1 + x2r2
rp = (0.5 *´ 0.09) + (0.5 ´* 0.14)
= 0.115 = 11.5%
sP2 = (0.5)^2(0.10)^2 + 2*(0.5)(0.5)(0.10)(0.16)(0.10) + (0.5)^2(0.16)^2
sP2 = 0.0097
sP = 0.985 = 9.85%
Hence, he can never perform better by investing equal amount in bond portfolio and index fund. The expected return increases to 11.5% and standard deviation decreases to 9.85%.