Answer:
1
dr Rent expenses 440
cr Prepaid rent 440
Rent december
2
dr Depreciation expenses 183,33
cr Accumulate depreciation 183,33
Depreciation december
Explanation:
1
dr Rent expenses 440
cr Prepaid rent 440
Rent december
2
dr Depreciation expenses 183,33
cr Accumulate depreciation 183,33
Depreciation december
Answer:
profit
Explanation:
profit is a financial return or reward that an entrepreneur aims to achieve to reflect the risk it takes. Profit is also an important signal to other providers of finance to a business. Banks, suppliers and other lenders are more likely to provide finance to a business that can demonstrate that it makes a profit and that it can pay debts as they fall due.
Answer:
Loss of $500
Explanation:
Given that
Stock price = 123
Strike price = 125
Premium price = 5
Recall that
Long call profit = (MAX (stock price - strike price, 0) - premium per share
Thus,
Long call profit = Max [0, ($123 - $125)(100)] - $500
= - $500.
Therefore, the negative sign in front indicates a loss of $500
Answer:
The question is incomplete, find complete question in the attached.
The receivables turnover for the current year is 9.02 times while average days sales in receivable is 41 days
Explanation:
The formula for computing receivables turnover ratio is given as:
Net credit sales/average accounts receivable,where average receivables is the opening plus closing receivables divided by two.
Net credit sales=$35,657
Average receivables =($3495+$4415)/2=$3955
Receivable turnover ratio=$35657/$3955
=9.02
Average days sales in receivable=number of days in the year/receivable turnover ratio
Average days sales in receivable=365/9.02
=40.47 days approx 41 days
The average days sales in receivable implies the average number of days it takes receivables to settle their accounts
Answer:
1.25
Explanation:
The Capital Asset Pricing model will be used
ße = ßa × [Ve + Vd(1 – T)] / Ve
Here
ße = 1.08
Ve = Value of equity $50 million
Vd = Value of debt $10 million
T is tax rate which is 21%.
By putting the values, we have:
ße = 1.08 × [50 + 10(1 – 21%)] / 50
ße = 1.25
The beta equity of Chocolate Cookie is 1.25 which shows higher risk than average risk.
