Answer:
July 1, 2020
Dr. Account Receivable $56,000
Cr. Sales $56,000
July 9, 2020
Dr. Cash $54,880
Dr. Sales Discount $1,120
Cr. Account Receivable $56,000
Explanation:
Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
As Payment of $56,000 is received within the discount period. So, the discount will be
Discount = $56,000 x 2% = $1,120
Amount Paid = $56,000 - $1,120 = $54,880
Answer:
the company's WACC is 16.88%
Explanation:
<u>Cost of Common Stock is Calculated as follows :</u>
The available data allows us to use the (Capital Asset Pricing Model ) CAPM to calculate the cost of equity.
Cost of Common Stock = Risk free rate + Company`s Beta × Risk Premium
= 5.9 % + 1.12× 10 %
= 17.10%
<u>Cost of Bonds is Calculated as follows :</u>
Cost of Debt = Interest × (1- tax rate)
= 7.90% × ( 1- 0.30)
= 5.53%
<em>Capital Source Market Value Weight Cost Total</em>
Common Stock $35,190,000 98.05% 17.10% 16.77%
Bonds $699,840 1.95% 5.53% 0.11%
Total $35,889,840 100.00% 16.88%
Answer:
Both direct costs and activity costs.
Explanation:
Activity-based costing model takes into consideration both the direct and activity costs, as it does not omit the overhead or indirect costs, unlike some other costing methods. This costing model, is mostly used in the manufacturing. This method identifies activities and assigns them to each product or service accordingly.
It is true that a standing bill been passed