A perfect competition is a type of market, in which there are many<span> sellers and buyers who has fuul knowledge of the market. All element of monopoly (one man seller or buyer) is eliminated and the market price of a commodity is not controled by any individual buyer or seller.</span>
Answer: $20,000
Explanation:
From the question, we are told that Liddy Corp. began constructing a new warehouse for its operations in the current year and that Liddy incurred interest of $10,000 on a working capital loan, and an interest on a construction loan for a warehouse of $70,000. The interest that was computed on the average accumulated expenditures for the warehouse construction was $60,000.
To calculate the amount of interest that Liddy should expense for the year, we add the $10,000 Liddy interest that Liddy incurred on a working capital loan plus the interest on the construction loan for the warehouse of $70,000. We then subtract the expenditure of $60,000 from the value gotten. This will be:
= $10,000 + $70,000 - $60,000
= $20,000
The amount of interest should Liddy expense for the year is $20,000.
Answer:
$369,830.37
Explanation:
Present value can be calculated using a financial calculator
Cash flow from year 1 to 6 = 80,000
i = 8%
pv = $369,830.37
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
The Average Collection period is 92 days.
Explanation:
Average collection period is the average number of days between the number of credit sales and the day when the cash is received. It means how many days it will take received cash from the credit sales on average.
Credit Sales = $2,736,000
Account Receivable = $699,200
Average collection period = ( Account receivable / Credit sales ) x 360
Average collection period = ( $699,200 / $2,736,000 ) x 360
Average collection period = 92 days
