Answer:
Cost of goods sold = $8,800
Explanation:
<em>The cost of goods is represents amount incurred to make available what has been sold. It is computed as follows:</em>
<em>Cost of goods sold = opening stock + purchases - closing inventory</em>
It is useful to determine the cost of goods so as to calculate the gross profit margin. The gross profit is the sales revenue less cost of goods sold.
So we can compute same for the sporting equipment store as follows:
Cost of goods sold = 3,800 + 7,800 - 2,800
= $8,800
Cost of goods sold = $8,800
The answer is: A) As deductibles decrease, policy costs tend to increase.
Deductibles refers to the amount of money that the insured had to pay before receiving benefit from the insurance company. If you sign a contract with lower deductibles, the amount of money usually would be allocated to the policy cost that you have to pay each months.
Answer:
d. Account receivable days = 72 days
Explanation:
The average receivable days. This is the average length of time it takes a business to collect the amount due from its customers in respect of credit sales.
When a business sells on credit , customers are expected to settle their account within a given credit period. Account receivable days is computed to evaluate how well a business is managing its investment in the account receivables.
The shorter the better, as it means that custmers are paying on time, thereby preserving cash position for the business and reducing the risk bad debt.
A prolonged account receivable days means a poor credit control system which comes with the attendants risk bad debt and additional financing costs for the business.
To compute the account receivable days (debtors collection period), use this formula:
Account receivable days= (Average account receivable/Credit sales) × 360 days.
So we apply this to the question:
Account receivable days= ( 1,200,000/6,000,000) × 360 days
= 72 days
Answer:
No, a currency carry trade with positive profit can not be conducted.
Explanation:
The currency carry trade is the trading strategy where investor funding from lower-yield currency to invest in higher-yield currency with expectation to earn positive profit from the yield differences between the two currencies.
However, this strategy only works when the difference is big enough to compensate for the depreciation ( if any) of the higher-yield currency against the lower-yield currency.
With the given information, the strategy will not work because the depreciation of NZ$ against US$ after one-year is too big to be compensated for the yield difference.
For specific example, suppose the strategy is conducted, in 2008, an investor will borrow, for example, US$1 at 4.2%, exchange it to NZ$1.71. Then, invest NZ$1.71 at 9.1%.
In 2019, an investor will get NZ$1.86561 (1.71 x 1.091). The, he/she exchanges at the 2019 exchange rate, for US$1.36176 (1.86561 / 1.37). While at the same time, he will have to pay back 1 x 1.042 = US$1.042 => The loss making in US$ is US$0.32.
