Answer:
A) $ 1,200
Explanation:
The firm has estimated that one half of one percent of credit sales is uncollectible.
Total credit sales $ 300,000
Estimated uncollectible accounts 0.5 %
Allowance for uncollectible accounts balance
$ 300,000 * 0.5 % $ 1,500
Available balance in allowance for uncollectible account <u> $ 300</u>
Additional amount to be recorded in allowance account <u> $ 1,200</u>
The answer is, the above statement is "true".
Free cash flow (FCF) refers to a measure of an organization's money related performance, figured as working income short capital consumptions. FCF shows the money that an organization can produce subsequent to spending the cash required to keep up or extend its benefit base. FCF is critical on the grounds that it enables an organization to seek after circumstances that upgrade investor value.
Answer:
Present value of payments to the bank=938.51
Explanation:
The present value of the payment to the bank are an ordinary annuity i.e equal payments made at the end of each year for 16 years.
The Present value of an ordinary annuity is calculated as follows:
![Present value =PMT*\frac{[1-(1+i)^-^n]}{i}](https://tex.z-dn.net/?f=%20Present%20value%20%3DPMT%2A%5Cfrac%7B%5B1-%281%2Bi%29%5E-%5En%5D%7D%7Bi%7D)
where PMT is the annual payment made at the end of each year=$100;
i is the interest rate or discount rate = 4%,
n=the number of years the periodic payment of 100 is to be made=12
Present value of payments to the bank = ![ 100*\frac{[1-(1+0.04)^-^1^2]}{0.04}](https://tex.z-dn.net/?f=%0A100%2A%5Cfrac%7B%5B1-%281%2B0.04%29%5E-%5E1%5E2%5D%7D%7B0.04%7D)
= 938.51
Answer:
shifts from innovative to functional products
Answer:
$2200
Explanation:
The reason is that the property owned by the seller was 5 and half year starting from first of January to 15th of June. This means that 5.5/12 share of the total property tax relates to the seller and the remainder 6.5 months of total 12 months relates to the buyer of the property.
Hence the property tax for:
Seller = 5.5 / 12 * $4800 = $2200
Buyer = 6.5 / 12 * $4800 = $2600
Ratio method is used above to calculate the relevant shares of each party.
