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Rudik [331]
3 years ago
14

In the Month of March, Digby Corporation received orders of 128 units at a price of $15.00 for their product Daze. Digby uses th

e accrual method of accounting and offers 30 day credit terms. Digby delivers 86 units in March and the balance of 43 units in April. They received payment for 43 units in March, 43 units in April, and 43 units in May. How much revenue is recognized on the March income statement from this order
Business
1 answer:
Montano1993 [528]3 years ago
6 0

Answer:

$1,290

Explanation:

The revenue to be recognized in march is dependent on if the revenue recognition criteria was met in march. These criteria are

  • the cost of goods delivered or service rendered can be measured reliably
  • good/services were delivered/rendered in the month

This is irrespective of whether cash was collected or not under the accrual method.

Given that Digby delivers 86 units in March at a price of $15.00, revenue to be recognized

= 86 * $15

= $1,290

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However, if they are made to pay for this negative externality that they are the cause of, it will increase their production cost and force them to reduce production to keep these costs low. As they reduce production, the market price will increase as supply is less.

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3 years ago
Normal profit is the return to the entrepreneur when economic profits are zero. determined by subtracting implicit costs from to
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Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. Hence, the correct statement is Option A.

<h3>When the business earns normal profits?</h3>

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5 0
2 years ago
Hungry lunch has net income of $73,402, a price-earnings ratio of 13.7, and earnings per share of $.43. How many shares of stock
kati45 [8]

Answer: The number of shares outstanding is approximately 170702.32 shares.

We have :

EPS                       $0.43

Net Income       $73,402

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7 0
3 years ago
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Scampini Technologies is expected to generate $25 million in free cash flow next year, and FCF is expected to grow at a constant
DedPeter [7]

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$9.26 per stock

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since the company does not have any debt, the price of each stock is:

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8 0
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