Answer:
Adjusted Bank Balance = $85,000
Explanation:
Adjustment of bank balance is a bank reconciliation procedure, that is used to match the amount in the bank statement with the amount in the company's balance sheet.
To adjust the bank balance, particulars that need to be subtracted or added to the bank statement balance has to be identified and treated accordingly.
For this example, the adjusted balance is calculated thus:
Adjusted bank balance = (Bank statement balance) - (outstanding checks) +(deposit in transit)
Adjusted Bank Balance = 78,000 - 2,400 + 9,400 = $85,000
Note:
outstanding checks are subtracted because they are payments to be made made by the company, representing a liability to the company (payer)
deposit in transit is an income to the company that has not been credited yet, but that will be credited.
Answer:
Reorder point = (weekly demand * lead time) + (Z * standard deviation * √lead time) = (294 * 10) + (2.326 * 90 * √10) = 2,940 + 661.99 = 3,602 units
Old safety stock = Z * standard deviation * √lead time = 662 units
new safety stock = 331
331 = Z * 90 * √10
Z = 331 / 284.60 = 1.163
Using Normal distribution function, the new confidence interval is 87.76%
Answer:
$918.89
Explanation:
For computing the current price of the bond we need to apply the present value formula i.e to be shown in the attachment
Given that,
Future value = $1,000
Rate of interest = 8% ÷ 2 = 4%
NPER = 5 years × 2 = 10 years
PMT = $1,000 × 6% ÷ 2 = $30
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the current price of the bond is $918.89
Answer:
$50
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
If I decide to go to the game, I forgot the opportunity of selling the ticket for $50 which is the next best use of the ticket.
I hope my answer helps you
Answer:
<u>Predatory pricing</u>
Explanation:
A "predator" refers to an animal who survives by "preying" on other animals.
Predatory pricing in a similar sense refers to that form of excessively low pricing which in a way consumes other firms by taking away their share of industry revenues. Such form of pricing is considered illegal and is against healthy competition.
Such pricing eliminates competitors from the market and gradually leads to emergence of a monopoly i.e supremacy of a single firm in the whole industry and thus considered an illegal practice.
In the given case, the retail chain can be alleged to have followed predatory pricing which is substantiated by the fact that it cuts it's prices excessively i.e even below cost , thereby forcing smaller companies to exit the industry.