Answer:
B)Buying 5 puts on the stock
Explanation:
The put provides the investor right to sell the stock at a strike price or set price for a time period and protect against the losses that lies below the strike price.
Also buying calls would protect the short position of the stock. Now in the case when the customer has the long stock so the call purchase on that security would rise the leverage and risk. Now if the put option is written so it develops a liability to purchase more stock at the set price that increased the down side risk
Therefore the correct option is B
Answer:
The control Delicious has over the details of the work
Explanation:
The key factor refers to the most prominent reason which proves a fact in the most convincing manner.
In the given case, Delicious coffee company has hired Elton to sell products in an area and have determined his compensation in the form of salary, commission and other benefits.
Also the terms of selling by which Elton must abide by have been mutually agreed upon between the parties.
The key factor which determines that Elton is Delicious's employee is governed by the extent of control Delicious (Employer) exercises over the details of his work i.e how the employer controls his work and tasks.
The key factor would also be reflected in Elton's acts relating to his performance of the job.
Given: Beginning inventory 360 units @ $65 each
Purchase:
1. 540 units @ $68 each
2. 270 units @ $70 each
Sales: 900 units
To calculate: cost of goods sold as per LIFO method (Last In First Out).
LIFO = stock coming in last will go out first.
Solution:- Cost of goods sold is calculated as follows:
270 units @ $70 each = 270*70 = $18900
540 units @ $68 each = 540*68 = $36720
900 - (270+540) = 90 units
remaining 90 units will be sold from inventory at the beginning
90 units @ $65 each = 90*65 = $5850
So, total cost of goods sold = $ (18900+36720+5850) = $61470.
Answer and Explanation:
The computation of the cost od merchandised sold for each sale and the inventory balance after each sale is presented in the attachment below;
The perpetual inventory is the system which updated the inventory as on a regular basis
While on the other hand, the weighted average cost method is the method in which the average cost is calculated after each every purchase is made
In the calculation below:
1. The weighted average cost of $30.90 come from
= (Total inventory cost) ÷ (Total quantity)
= ($180,000 + $1,674,000) ÷ (60,000 units)
= $30.90
1. The weighted average cost of $31.60 come from
= (Total inventory cost) ÷ (Total quantity)
= ($463,500 + $674,100) ÷ (36,000 units)
= $31.60
Answer:
b. 2,100
Explanation:
On January will be collected: a) 10% January´s sales because is collected in cash; b) 40% December´s sales because is collected one month following the sale, and 50% November sales because the balance is collected two months following the sale.
So we can calcula like follows:
Expected cash receipts in January = (4,000 * 0.10) + (3,000 * 0.40) + (1,000 * 0.50)
Expected cash receipts in January = 400 + 1,200 + 500
Expected cash receipts in January = 2,100