Answer:
$745,000
Explanation:
The computation of the net account receivable is shown below:
The net account receivable is
= Adjusted balance of account receivable - allowance for doubtful debts
= $800,000 - $55,000
= $745,000
We simply deduct the allowance for doubtful debts from the adjusted balance of account receivable so that the net account receivable could come
Answer:
The correct answer is foreign direct investment.
Explanation:
Foreign Direct Investment (FDI) consists of the capital investment by a natural person or a legal entity (institutions and public companies, private companies, etc.) in a foreign country. In the country of destination, this capital inflow can be made through the creation of new production plants or the participation in companies already established to form a subsidiary of the investment company. According to the OECD, FDI aims to exercise long-term control over the acquired or investee company, and the criteria established to define it is that the property acquired by the parent company be at least 10% of the subsidiary.
Answer:
Number of vehicles to be sold to reach break-even point is 200,000 unit
Explanation:
<em>Computation of Dealer’s Discount:
</em>
Dealer Discount = MSRP * Rate of Discount
=$30,000×10%
=$3,000
<em>Computation of net selling Price: </em>
Net Selling Price = MSRP - Dealer ′
s Discount
=$30,000 - $3,000
=$27,000
<em>Computation of Contribution Margin: </em>
Contribution Margin = Net Sales - Unit Cost
=$27,000 - $20,000
=$7,000
<em>Compute the number of units to reach break-even point for Firm X.</em>
Break-even point = Fixed cost / Contribution per unit
=$1,400,000,000 / $7,000
=200,000 units
Therefore, number of vehicles sold to reach break-even point is 200,000.
Nb: MSRP means manufacturer's suggested retail price
Answer:
COGS= $130,000
Ending inventory= $110,000
Explanation:
Giving the following information:
Units sold= 500
Purchases:
Dec. 1= 300 units at $250
Dec. 8= 600 units at $275
<u>To calculate the cost of goods sold under the FIFO (first-in, first-out) method, we need to use the cost of the firsts units incorporated into inventory:</u>
COGS= 300*250 + 200*275
COGS= $130,000
<u>Now, the ending inventory:</u>
Ending inventory= 400*275= $110,000
Answer:
Explanation:
The formula to be used in calculation is FV = PV*(1+I)^n
FV - Future value at the end of periods
PV - Present value
r - interest rate
n - number of years
a. The amount due f the loan is repaid at the end of year 1
FV = 200*(1+0.14)^1 = 200*0.14 = $228
b. Repayment at the end of year 4
FV = 200*(1+0.14)^4 = 200* 1.6889 = $337.79
c. The amount due at the end of 8 year
FV = 200*(1+0.14)^8 = 200* 2.85 = $570.51
