Answer:
$0
Explanation:
Finerly should recognize $0 of revenue upon delivery to distributors. Because of the uncertainty of the returns due to the fact that Finerly does not know if it will have to accept the cosmetics back from the distributors if the cosmetics are not sold, Finerly cannot or should not recognize revenue until it either can estimate in a better way its returns or when the sales actually occur.
Answer:
a. subtract the company's expenses from its revenue.
Explanation:
For computing the profit or loss we simply deduct all the expenses incurred from the revenue earned.
If the revenue is more than the expenses than it would profit to the company
And, if the revenue is less than the expenses than it would be loss suffered by the company
In mathematically,
Net income = Total revenues earned - all expenses incurred
And, the net loss = All expenses incurred - total revenues earned
Hence, the first option is correct
Answer:
$12,936,120
Explanation:
The formula for calculating compound interest
=FV = PV × (1+r)n
Fv = future value
PV present value
r interest rate =10 %
t =time = 5 years
Future value= 12million x(1+10/100)5
=12,000,000 x (1+0.1)5
=12,000,000x1.61051
= $12,936,120
Answer: 19.56%
Explanation:
Effective Rate of Return is the rate that takes into account, the compounding influence of interest rates in a given period.
It is calculated with the formula,
= ( 1 + r/n) ^ n - 1
Where
r = APR
n = no of compounding periods in a year
Interest is paid monthly so nnumber of periods will be 12.
Therefore,
EFF = ( 1 + 18%/12)¹² - 1
EFF = 19.56%
Answer:10.06 %
Explanation:
WACC = (Cost of equity × weight of equity ) + (Cost of debt × weight of debt)
Cost of equity = 0.17
Cost of debt = pretax cost of debt × (1 - tax rate )
0.06 × 0.52 = 0.0312
Weight of debt and equity = $3 / $6 = $0.5
WACC = ( 0.17 × 0.5 ) + (0.52×0.06 × 0.5) = 0.085 + 0.0156 = 0.1006 = 10.06%
