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Agata [3.3K]
3 years ago
15

"The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. What is the profit or l

oss to a short position if the spot price of the market index rises to $920 by the expiration date"
Business
1 answer:
Mademuasel [1]3 years ago
8 0

Answer:

$10 profit

Explanation:

In this question, we are asked to calculate the profit or loss to a short position.

Firstly, we identify that the spot price of market index is $900.

Now, a three months forward contract equals a value of $930.

Raising the index to $920 at the expiry date is obviously a profit to the short position.

To calculate the profit here, we simply subtract the index at expiry date from the three months forward contract.

Mathematically, this is equal to $930-$920 = $10 profit

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In an output contract, the seller can operate a factory on a 24-hour-a-day schedule and can legally require that the buyer take
Len [333]

Answer:

yes

Explanation:

5 0
3 years ago
The following account appears in the ledger prior to recognizing the jobs completed in January: Work in ProcessBalance, January
exis [7]

Answer:

Year-end WIP 62,200

jounral entry for completed jobs:

-------------------------------------

Finished Good Inventory   1,149,800 DEBIT

  WIP inventory                              1,149,800 CREDIT

-------------------------------------

Explanation:

<u>WIP </u>

Beginning  $     72,000

Materials    $   390,000

Labor          $   500,000

Overhead   <u>$   250,000</u>

Total WIP    $  1,212,000

<u />

<u>Finished Jobs:</u>

Job 210  $  200,000

Job 224 $  225,000

Job 216  $  288,000

Job 230 <u>$  436,800</u>

Total       $ 1,149,800

the jobs complete will move to finished good and credit WIP inventory

WIP year-end:

1,212,000 - 1,149,800 = 62,200

7 0
3 years ago
How does Maslow hierarchy of need help marketers to create various marketing strategies. Explain your answer with examples.
Keith_Richards [23]

The Maslow hierarchy of need helps marketers to create various marketing strategies because its already provides a way of evaluating the customers' motivations beyond what raw data will give.

<h3>What is the Maslow hierarchy of need?</h3>

The psychological theory established the motivation theory that models the 5 categories of human needs that helps to dictate an individual's behaviour.

The needs of human according to the Maslow Hierarchy includes Self-actualization, Esteem need, love and belonging need, safety need and physiological needs.

Read more about Maslow hierarchy

<em>brainly.com/question/19040822</em>

#SPJ1

7 0
1 year ago
Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to have a salvage value of
Tasya [4]

Answer:

B) Debit to accumulated depreciation for $22,500.

Explanation:

As for the information provided,

Depreciation under straight line method for each year = ($45,000 - $5,000)/8 = $5,000 for each year.

Depreciation for 4 years = $5,000 \times 4 = $20,000

Depreciation in 5th year for 6 months = $5,000/2 = $2,500

Total depreciation till 1 July Year 5 = $20,000 + $2,500 = $22,500

Carrying value of equipment in books as on date of sale = $45,000 - $22,500 = $22,500

Sale price = $20,000

Profit or loss on sale of equipment = $20,000 - $22,500 = - $2,500

So therefore, there is loss of $2,500

Thus, option c and option d are invalid.

Further cash received on sale is debited and not credited thus, option a is also invalid.

As the total accumulated depreciation = $22,500

The correct entry will include debit to accumulated depreciation of $22,500.

Thus, option b is correct.

6 0
3 years ago
At December 31, 2021, Sunland Company had a credit balance of $15,300 in Allowance for Doubtful Accounts. During 2022, Sunland w
andrezito [222]

Answer:

See below

Explanation:

During 2022, Sunland Company wrote off accounts totalling $12,800

Entry

Allowance for doubtful account Dr $12,800

---------- To Accounts receivable Cr $12,800

(Being entries to write off accounts initially provided for)

Only one of those accounts ($1,700) was later collected

Entry

Cash account Dr $1,700

----------- To Bad debt expense Cr $1,700

(Being entries to record receipt of cash from account previously written off)

At December 31, 2022 an aging schedule indicated that the balance in Allowance for Doubtful accounts should be $26,800

Entry

Bad debt expense Dr $24,300

---------------- To Allowance for doubtful debt Cr $24,300

(Being entries to recognize bad debt expense at year end based on aging schedule)

Workings

Adjustment required for doubtful accounts

= $26,800 - ($15,300 - $12,800)

= $24,300

3 0
3 years ago
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