Answer:
4.86%
Explanation:
Given that
Expected sales = $360,000
Break-even sales = $342,500
The computation of the margin of safety is shown below:-
Margin of safety (in percent) = (Expected sales - Break-even sales) ÷ Expected sales
= ($360,000 - $342,500) ÷ $360,000
= $17500 ÷ $360,000
= 4.86%
Therefore, for computing the margin of safety we simply deduct break even sales from expected sales and after result we divide with expected sales.
Answer:
The credit terms 2/10, n/30 are interpreted as:
- 2% cash discount if the amount is paid within 10 days, or the balance due in 30 days.
Explanation:
I will explain using an example:
On January 2, the company sells $1,000 worth of goods with credit terms 2/10, n/30.
January 2
Dr Accounts receivable 1,000
Cr Sales revenue
If the client pays within the discount period:
January 11
Dr Cash 980
Dr Sales discounts 20
Cr Accounts receivable 1,000
If the client pays after the discount period but before 30 days:
January 31
Dr Cash 1,000
Cr Accounts receivable 1,000
It would be a "balance sheet" that represents an attempt to measure the earnings of the firm’s operations over a given time period. They are usually done every quarter and take into account both the income and spending of the firm.
Answer:
Total FV= $27,805.2
Explanation:
Giving the following information:
You expect to receive $5,400 two years from now, $6,300 three years from now, and $10,900 six years from now.
Interest rate= 7.4%
<u>To calculate the Future Value, we need to use the following formula:</u>
FV= Cf*(1 + i)^n
Cf1= 5,400*(1.074^5)= 7,716.41
Cf2= 6,300*(1.074^4)= 8,382.19
Cf3= 10,900*1.074= 11,706.6
Total FV= $27,805.2
Answer:
c. the total inflow of foreign funds minus the total outflow of domestic funds
Explanation:
Capital inflow equals the total inflow of foreign funds minus the total outflow of domestic funds.
Inflows of foreign fund occur generally in a country by selling goods and services, shares, etc to outside of the country and similarly, the outflow of domestic funds occur from a country through purchasing of goods and services, shares, etc from outside countries and<u> differences of these two called as Capital inflow.</u>
