Answer:
$73,500
Explanation:
Given data
Amount expected to be collected $898,000
Allowance for uncollectible accounts at 1/1/20 - credit balance $102,000 Accounts written off as uncollectible during 2020 $68,500
Accounts receivable at 12/31/20 $971,500
Uncollectible accounts recovered during 2020 $14,900
The computation of the bad debt expense is shown below:
Bad debt expense = Ending balance of account receivable - amount expected to be collected
= $971,500 - $898,000
= $73,500
Answer:
b. Only incremental cash flows, which are the cash flows that would result if a project is accepted, are relevant when making accept/reject decisions, is the is CORRECT rule for capital budgeting analysis.
Explanation:
Incremental cash flow is the additional operating cash flow that an organization receives from taking on a new project. The incremental cash flows may be positive or negative.
If it is a positive incremental cash flow, which means the company's cash flow will increase with the acceptance of the project.
If it is negative incremental cash flow, then the company's cash flow will decrease and the project needs to be rejected.
Answer:
Ans. your monthly payment, for 30 years is $9,257.51 if you buy a property worth $1,000,000 and you make a down payment of $100,000
Explanation:
Hi, first we have to change the fixed rate in terms of an effective monthly rate, which is 1% effective monthly (12% nominal interest/12 =1% effective monthly). After that, take into account that the property is going to be paid in 30 years, but since the payments are going to be made in a montlhly basis, we have to turn years into months (30 years * 12 = 360 months).
After all that is done, all we have to do is to solve the following equiation for "A".
Where:
A= Annuity or monthly payment
r= Rate (effective monthly, in our case)
n= Periods to pay (360 months)
Everything should look like this.
Best of luck.
Answer:
The net income will decrease and also the total assets will also decrease
Explanation:
Here, we want to know the combined effect on net income and total assets of company that made a decision of distributing assets as a property dividend.
As the asset value is down the entry is asset (credit) and loss on asset (debit)
This will effect the net income as it will come down and total assets value also come down
