Answer:
C. Debt service funds account for and report financial resources that are restricted, committed or assigned to expenditure for principle and interest for governmental debts except debt of proprietary and fiduciary funds who account for their own interest and principle payments.
Explanation:
Debt service funds are used to pay for principal and interest on certain types of debts. This reduced the risk of debt security that investors face and also reduces the effective rate at which the offering can be sold.
However debt service funds cannot be used for proprietary funds like 400 and 500.
Instead we use Enterprise funds for 400. That is operations similar to corporate enterprise. For example water and sewage utilities.
Internal service funds for 500 used by other funds or departments bin a government in a cost reimbursement basis. For example a food supplier that takes orders and is reimbursed for each order.
Answer:
$143
Explanation:
The computation of the demand forecast is shown below:
= Weightage × demand observed + Weightage × demand observed + Weightage × demand observed
= 0.1 × 120 + 0.4 × 140 + 0.5 × 150
= $12 + $56 + $75
= $143
Basically we multiplied the weighatge with its demand observed so that the demand forecast could come
Answer:
$36,070
Explanation:
Given that,
Contribution margin ratio = 61%
Fixed monthly expenses = $47,500
sales = $137,000
Contribution margin:
= Sales × Contribution margin ratio
= $137,000 × 61%
= $83,570
Net income = Contribution margin - Fixed monthly expenses
= $83,570 - $47,500
= $36,070
Therefore, the best estimate of the company's net operating income in a month is $36,070.
Technically you could live in a tree house if you wanted to.
