Solution :
We calculate the advances form the customer to be reported as the current liability as on Dec. 31, 2009 in the balance sheet as follows :
<u> Particulars </u> <u> Amount ($)</u>
Customer advances the balance Dec 31, 2008 110
Add : advances that is received with 2009 orders is 195
Less : advances applicable to the orders in 2009 -180
Less : advances from orders that are canceled in 2009 <u> -45 </u>
Advances from the customers liability Dec. 31, 2009 80
Therefore, the advance from the customer to be reported in the balance sheet as the current liability is $80.
Answer: The problem of this plan is that their income will not be able to break even, because their cost price will be grater than the selling price. Which may cause the new company to wind up
Explanation: break even is a point where the cost price is equal to the selling price. This means that profit nor loss were not made.
Because Avis and Hertz are offering rentals at a prices below average variable cost, the company may not be able to meet up with capital for production of more cars, and this will cause them to wind up.
For a new company, it is always advisable to keep it's selling price a little bit above or the same with it's cost Price, because the strength not any business is the ability to produce more to fill the space of scarcity.
Answer:
Your eligible to take care of your self and pay things you have going on including: Depth, Late payment, Rent
Explanation:
Answer:
IRR= R1+[NPV1(R2-R1)%/(NPV1-NPV2)]
=28%+[ 549 x (29-28)%/(549-(-763)]
=28% +[5.49/1312]
=28% +0.418
=28.41%
As per both NPV and IRR the project is acceptable
Reason:
NPV is positive and IRR is greater than cost of capital
Explanation:
See the attached pictures for detailed explanation.
