Who played the character of harry potter in movie? Daniel Red Cliff.

An article in the Wall Street Journal noted that the demand for video Internet advertising was increasing at the same time that

Andrei [34K]

Answer:

c.

Explanation:

If the demand for video internet advertising is increasing, then the demand curve shifts to the right. And if the number of internet sites accepting advertising also increases, then the supply curve shifts to the right. Independently on the magnitude shifts the equilibrium quantity will rise, but the change in price depends on these magnitudes. For example, if the demand shift is greater than the supply shift, the eq. quantity will increase but the price will increase too. If the supply shift is greater than the demand shift, the eq. quantity will increase but the price will decrease. And if the magnitude shifts are similar it is probable that the eq. quantity increases and the price remains the same.

5 0

2 years ago

Locomotive Corporation is planning to repurchase part of its common stock by issuing corporate debt. As a result, the firm’s deb

QveST [7]

Answer: See explanation

Explanation:

a. What is the market value of Locomotive Corporation before and after the repurchase announcement?

Equity value = Debt value / Debt to equity ratio

= 3,300,000/0.3

= 11,000,000

Market value = Debt value + Equity value

= $3,300,000 + $11,000,000

= $14,300,000

b. What is the expected return on the firm’s equity before the announcement of the stock repurchase plan?

To solve this, we need to know the interest payment first which will be:

= $3,300,000 × 9%

= $3,300,000 × 0.09

= $297000

Return on equity will now be:

= (EBIT - interest) / Equity

= (1320000 - 297000) / 11000000

= 9.30%

c. What is the expected return on the equity of an otherwise identical all-equity firm?

This will be:

= Earnings before Interest / Unlevered firm value

= 1320000 / 14300000

= 9.23%

d. What is the expected return on the firm’s equity after the announcement of the stock repurchase plan?

This will be:

= 9.23% + 50% × (9.23% - 9%)

= 9.35%

5 0

3 years ago

The sales forecasting method that consists of making a product available to buyers in one or more locations and measuring purcha

vladimir1956 [14]

Answer: Market test (a)

Explanation:

Market test is an experiment that is usually conducted before the commercialization of a particular product, the outcome of the experiment will determine if such firm will accept the idea of the product or drop it.

3 0

3 years ago

Charter Corporation, which began business in 2013, appropriately uses the installment sales method of accounting for its install

Doss [256]

Answer:

a. Charter should recognize $80,000 as gross profit in 2013; and Charter should recognize $92,500 as gross profit in 2014.

b. The balance in the deferred gross profit account at the end of 2013 should be $105,000; and the balance in the deferred gross profit account at the end of 2014 should be $120,500.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. Kindly see the attached pdf file for the represented complete question with the sorted data.

The explanation to the answers is now given as follows:

Installment sales method can be described as a revenue recognition technique where a business postpone profit on a sale until when the cash is received from the buyer. A proportion of the profit based on gross profit percentage is then recorded as a profit for the period when the cash is received from the buyer.

This method can be applied to this question as follows:

Gross profit in 2013 = Installment sales in 2013 - Cost of installment sales in 2013 = $370,000 - $185,000 = $185,000

Gross profit percentage in 2013 = (Gross profit in 2013 / Installment sales in 2013) * 100 = ($185,000 / $370,000) * 100 = 0.50 * 100 = 50%

Gross profit in 2014 = Installment sales in 2014 - Cost of installment sales in 2014 = $360,000 - $252,000 = $108,000

Gross profit percentage in 2014 = (Gross profit in 2014 / Installment sales in 2014) * 100 = ($108,000 / $360,000) * 100 = 0.30 * 100 = 30%

a. How much gross profit should Charter recognize in 2013 and 2014 from installment sales?

Gross to recognize in 2013:

Gross recognized in 2013 in respect of 2013 instalment sales = Cash collections in 2013 on installment sales during 2013 * Gross profit percentage in 2013 = $160,000 * 50% = $80,000

Therefore, Charter should recognize $80,000 as gross profit in 2013.

Gross to recognize in 2014:

Gross recognized in 2014 in respect of 2013 instalment sales = Cash collections in 2014 on installment sales during 2013 * Gross profit percentage in 2013 = $110,000 * 50% = $55,000

Gross recognized in 2014 in respect of 2014 instalment sales = Cash collections in 2014 on installment sales during 2014 * Gross profit percentage in 2014 = $125,000 * 30% = $37,500

Total gross profit to recognize in 2014 = Gross recognized in 2014 in respect of 2013 instalment sales + Gross recognized in 2014 in respect of 2014 instalment sales = $55,000 + $37,500 = $92,500

Therefore, Charter should recognize $92,500 as gross profit in 2015.

b. What should be the balance in the deferred gross profit account at the end of 2013 and 2014?

For 2013:

Balance in the deferred gross profit in respect of 2013 account at the end of 2013 = Gross profit in 2013 - Gross recognized in 2013 in respect of 2013 installment sales = $185,000 - $80,000 = $105,000

Therefore, the balance in the deferred gross profit account at the end of 2013 should be $105,000.

For 2014:

Balance in the deferred gross profit account in respect of 2013 at the end of 2014 = Balance in the deferred gross profit in respect of 2013 account at the end of 2013 - Gross recognized in 2014 in respect of 2013 installment sales = $105,000 - $55,000 = $50,000

Balance in the deferred gross profit in respect of 2014 account at the end of 2014 = Gross profit in 2014 - Gross recognised in 2014 in respect of 2014 installment sales = $108,000 - $37,500 = $70,500

Total balance in the deferred gross profit account at the end of 2013 = Balance in the deferred gross profit account in respect of 2013 at the end of 2014 + Balance in the deferred gross profit in respect of 2014 account at the end of 2014 = $50,000 + $70,500 = $120,500

Therefore, the balance in the deferred gross profit account at the end of 2014 should be $120,500.

Download pdf

6 0

3 years ago

Fallsview Glatt Kosher Caterers ran a business that provided travel packages, including food, entertainment, and lectures on rel

inessss [21]

Answer: The Contract is valid.

Explanation:

Under the UCC’s Statute of Frauds, transactions above $500 for goods cannot be made orally alone and have to be written in writing as well. This is the law that Rosenfield relied on.

However, Fallsview can argue that the Passover Retreat is not a Good, but rather a Service in which case it does not fall under the Statute.

The main bone of contention thereby becomes, if indeed it is a service or a good.

If it is a Hybrid of both, then the Court needs to decide if the services outweigh the goods involved.

From the text we see that the following were included in the package, food, entertainment, and lectures on religious subjects.

Food is the only good there and is outweighed by Entertainment and lectures on religious subjects.

As such, the contract is valid as it is for more service than good.

4 0

3 years ago

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