Answer:
$106 million
Explanation:
allowance for doubtful accounts
debit credit
beg. balance 426
bad debt 85
ending balance <u>405 </u>
106
Since you need $106 million to balance the account, that should be the amount of bad debt written off during the current year. Allowance for doubtful accounts is a contra asset account, any debit balance increases accounts receivable while a credit balance decreases it.
Answer:
49 days
Explanation:
Account receivable turnover ratio = Net credit sales / Accounts receivable
Account receivable turnover ratio = $602,000 / $79,922
Account receivable turnover ratio = 7.53
Average collection period = 365/7.53
Average collection period = 48.47277556440903
Average collection period = 49
Thus, firm’s sales uncollected for year is 49 days.
Answer:
The answer is: 10% constant growth rate
Explanation:
Since transportation stocks provide a 15% rate of return, TTT stock should also provide the same rate of return. We can expect to earn $9 (= $60 x 5%) every year from our investment in TTT stocks. We are receiving $3 as dividends, so the constant growth rate should equal the difference between the expected return minus the dividend payments:
- $9 - $3 = $6; $6 represents 10% of the current stock price
We can also calculate this with the following formula:
expected return rate = (dividends / price) + growth rate
15% = (3 / 60) + g
15% = 5% + g
10% = g
Answer:
E) existing factory has enough capacity to handle demand for the new products as well as the existing products.
Explanation:
If the existing factory doesn't have enough capacity to produce both the new product and existing ones, then if doesn't matter if the technology used is the same, or the new product is an extension of an existing product line, or existing human resources possess the abilities and knowledge required, or even if the product design is already complete or not.
If the factory's production capacity cannot handle the new product, then the company needs to expand the existing factory's production capacity or build a new facility.
