Answer:
30%
Explanation:
The computation of return on investment is shown below:-
Return on Sales = Credit sales × Return on sales
= $24,000 × 5%
= $1,200
Investment in Accounts Receivable
= $24,000 × 1 ÷ 6
= $4,000
Return on Investment = Return on Sales ÷ Investment in Accounts Receivable × 100
= $1,200 ÷ $4,000 × 100
= 30%
Therefore for computing the return on investment we simply divide the investment in account receivable by return on sales.
Answer:
option (c) 8 years
Explanation:
Data provided in the question:
Cost of the machine = $240,000
Useful life = 10 years
Salvage value = 0
Net income = $6,000 each year
Now,
Using the straight-line method of depreciation
Annual depreciation = [ Cost - Salvage value ] ÷ Useful life
= [ $240,000 - 0 ] ÷ 10
= $24,000
Thus,
Cash flow = $6,000 + $24,000
= $30,000
Therefore,
The payback period = ( Cost ) ÷ ( Cash flow )
= $240,000 ÷ $30,000
= 8 years
Hence,
the correct answer is option (c) 8 years
Answer:
See explanation section
Explanation:
As there is a difference between the physical count of the inventory and actual Inventory count, it indicates that the merchandise inventory is either sold or wasted. However, for continuing the operation smoothly, it is assumed as sold. Therefore, the journal entry to record the sale is -
December - 31 Cost of goods sold Debit 45,000
($415,000 - $370,000)
Merchandise Inventory Credit 45,000
(To record the sale of merchandise: adjusted)
Answer:
d.economic duress
Explanation:
The economic duress in simple terms means a party who is entering into a contract frightens or threatens of cancelling the contract or does not act according to the terms of the contract unless the other party in the contract agrees to their demands.
In the context, the conduct of Roger against Karl is probably can be called as the 'economic duress' as Roger informs Karl before the deadline of filing the response that he will not represent himself against IRS unless Karl enters into a deal of an expensive retainer agreement. Thus it is an economic duress that Roger is showing and forcing Karl to agree on his demands.
A thing that motivates or encourages someone to do something
