Answer:
B. $16,000.
Explanation:
The computation of the balance of Allowance for Uncollectible Accounts after adjustment is shown below:
= Account receivable × estimated percentage
= $400,000 × 4%
= $16,000
By multiplying the account receivable with the estimated percentage we can get the uncollectible amount
Hence, all other formation which is mentioned is not relevant. Hence, ignored it
Answer:
The correct answer is a. Debit Short-Term Investment for $160,000 and Credit Cash for the Same Amount.
Explanation:
Investments in Money Market Instruments, that is those instruments that mature within one year, are classified as Short-term Investments. Whereas, investments for a period of more than one year are termed as Long-term Investments. Since Kenall Corp. purchased bonds that will mature within one year, so such investment shall be classified under the head of Current Assets.
In-case of interest received semi-annually, Cash will be debited and Finance Income will be credited.
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Answer:
1. The overall goal and/or purpose
The overall goal of this analysis is to determine if you would actually save money by purchasing the extended warranty.
2. The given information
You can calculate this by determining the present value of the expected repair costs that will be covered by the warranty and determine which is higher; the warranty or the repairs
3. A time-line for the expected repair costs covered by the warranty
- initial investment -$1,800
- cash flow year 4 = $400
- cash flow year 5 = $500
- cash flow year 6 = $600
- cash flow year 7 = $800
4. The present value for each of the repair costs
the discount rate is 7%, so the present value of each repair cost is:
- PV cash flow year 4 = $400 / 1.07⁴ = $305
- PV cash flow year 5 = $500 / 1.07⁵ = $356
- PV cash flow year 6 = $600 / 1.07⁶ = $400
- PV cash flow year 7 = $800 / 1.07⁷ = $498
- total $1,559
5. The present value of the warranty and the expected profit for the warranty company
the present value of the warranty is $1,800, so the car company is making $1,800 - $1,559 = $241 in profits by selling you the warranty
6. Your conclusion
You shouldn't buy the extended warranty (negative NPV)
Answer:
314,000 shares
Explanation:
The number of issued shares in case of 2 for 1 stock split would be
= Number of issued shares × stock split ratio
= 157,000 shares × 2
= 314,000 shares
Simply we multiply the Number of issued shares with the stock split ratio so that the accurate number of shares can come
All other information which is given is not relevant. Hence, ignored it
Answer:
Production during January= 9000 units
Explanation:
By the following information, we need to calculate the number of units to produce in January:
beginning inventory 12,000 units
Sales January = 17000 units
Sales february= 20000
Ending inventory= 20% of expected sales for next month
Production during January= Sales January + ending inventory - beginning inventory
Production during January= 17000 + 0,20*20000-12000
Production during January= 9000 units