What happens when there are only a few large customers in the market?

Peter Company acquired 75 percent of Sally Company on January 1, 2019 for $712,500. During 2019, Sally purchased inventory for $

dezoksy [38]

Answer:

Journal entry to eliminate Sale to Peter Company

Debit : Sales Revenue (Sally Company ) $50,000

Credit : Cost of Sales (Peter Company) $50,000

Explanation:

Peter Company and Sally Company are in a group and Peter Company is the Parent whilst Sally Company is the subsidiary.

For 2019 Eliminate an Intragroup Transactions that occur between Peter Company and Sally Company.

8 0

2 years ago

You have just signed a contract for your rental property and you will make monthly payments at the beginning of each month. Your

Mekhanik [1.2K]

Answer:

$9,760.48

Explanation:

Present value of annuity due = P* [[1 - (1+r)^-(n-1)] / r] + P. Where P = Periodic payment = $1,000, r = Rate of interest per period 4% (0.48/12), n = number of payments 12 (12*1)

Present value of annuity = $1000 * [[1 - (1 + 0.04)^-(12-1)] / 0.04] + $1000

Present value of annuity = $1000*8.760475 + $1000

Present value of annuity = $8760.48 + $1000

Present value of annuity = $9,760.48

3 0

2 years ago

Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her

Dovator [93]

Answer:

3 cases

Explanation:

Marginal product refers to change in the total output when an additional input is employed. For example, output is 5 units when 2 laborers are employed. When another unit of input i.e 3rd laborer is employed, the output rises to 9 units. In this case marginal product of the 3rd unit of labor would be 9 - 5 i.e 4 units.

In the given case, before Atul is hired, the production was 4 cases per week. After his being hired, it rose to 7 cases per week. Thus Atul's marginal product in the given case would be 7 - 4 i.e 3 cases.

8 0

3 years ago

The following financial ratios and calculations were based on information from Kohl Co.'s financial statements for the current y

creativ13 [48]

Answer:

Kohl's Average total Assets were $1,000,000

Explanation:

1.

Asset Turnover = Net Sales / Average fixed Assets

Net Sales = Asset Turnover x Average fixed Assets

2.

Account Receivable Turnover = Net Sales / Average Account receivable

Net Sales = Account Receivable Turnover x Average Account receivable

According to given condition

Asset Turnover x Average fixed Assets = Account Receivable Turnover x Average Account receivable

2 X Average fixed Assets = 10 X $200,000

Average fixed Assets = $2000,000 / 2

Average fixed Assets = $1,000,000

7 0

3 years ago

Weaver Corporation had the following stock issued and outstanding at January 1, Year 1:

lesantik [10]

Answer:

Preferred shareholder (7,500*$100)*7% $52,500

Common shareholder (70,000×$2) $140,000

Total dividend $192,500

Date General Journal Debit Credit

10 June Dividend $192,500

To dividend payable $192,500

(To record dividends payable)

20 June No entry required

01 July Dividend payable $192,500

To cash $192,500

(To record dividend payment)

31 Dec Retained earning $192,500

To dividends $192,500

(To close dividend account)

7 0

2 years ago