Answer:
The journal entry would be as follows:
December 31, 2020 Debit Credit
Retained Earnings $9,400,000
Inventory $9,400,000
Explanation:
In order to prepare the journal entry to record the adjustment, we would have to calculate the amount of inventory with the following formula:
Amount of inventory=December 31, 2020, CPS’s inventories (FIFO)-31, 2020, CPS’s inventories (Average Cost)
=$38 million-$28.6 million
=$9.4 millions
Therefore, the journal entry would be as follows:
December 31, 2020 Debit Credit
Retained Earnings $9,400,000
Inventory $9,400,000
Answer:
A) The amount of the premium in fair insurance policy that replaces Beths car, must be equal to the probability or expectation of claim of car theft.
Therefore, the Premium amount = 20000 x (1/200)
= 20000 (0.005)
= $100
B) If an Insurance company charges 0.6% for replacing a stolen car, then the policy will cost beth:
20000* 0.6%
= 12,000/100
= $ 120
C) To be risk-neutral means to be indifferent to the risk. This means that Beth would be indifferent. She most likely will be focused on maximizing value for money. In other words, she will NOT pay for the insurance policy in part b because part A provides her with the exact (or fair) premium for her insurance.
D) The moral hazard problem is this, people tend to become more careless with an insurance policy in place. This moral hazard arises form the knowledge that there is an insurance policy that caters to their risks.
As a matter of practice, therefore, insurance companies factor this increased risk into their premiums. Where the premium was supposed to be $100, they may charge $120.
In summary, it means that Beth most likely will move from becoming risk neutral to becoming (to a certain degree) more risk loving.
Cheers!
Answer:
b. Golfanatics did a better job because its inventory turnover was higher.
Explanation:
Inventory turnover is defined as the number of times a business sells off its inventory in a year. Businesses target higher inventory turnover as this implies that they are making more sales.
The inventory turnover of Golf Inc was 5 times in the year.
The inventory turnover of Golfanatics was every 65 days, so in a year turnover would have been= 365/65 = 5.615
So Golfanatics turned over their inventory more times (5.615 times) than did Golf Inc (5 times).
Answer:1 it helps you lead a healthier life 2 stress causes so many ailments it greatly affects your mental health but it also affects you physically aches and pains
Explanation:
Answer:
Steve
Explanation:
because he can get in contact with Steve while in the hotel
