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Klio2033 [76]
2 years ago
9

CircuitTown commenced a gift card program in January 2018 and sold $12,900 of gift cards in January, $19,950 in February, and $1

9,800 in March of 2018 before discontinuing further gift card sales. During 2018, gift card redemptions were $8,400 for the January gift cards sold, $5,700 for the February cards, and $5,550 for the March cards. CircuitTown considers gift cards to be "broken" (not redeemable) 10 months after sale. Required: 1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2018
Business
1 answer:
MatroZZZ [7]2 years ago
8 0

Answer: $12,900

Explanation:

Given that,

sold gift cards in January = $12,900

sold gift cards in February = $19,950

sold gift cards in March = $19,800

During 2018, gift card redemptions were:

January = $8,400

February = $5,700

March = $5,550

Revenue recognized in 2018 with respect to January gift card sales:

= Gift card redemption in January + Gift card breakage

= $8,400 + ($12,900 - $8,400 )

= $8,400 + $4,500

= $12,900  

Out of this $8,400 will be gift card redemption and $4,500 gift card breakage.

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Maddy works at Burgers R Us. Her boss tells her that if she stays with the company for five years, she will receive a bonus of $
Sergeu [11.5K]

Answer:

$4,038

Explanation:

Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.

Present Value = Future Value  x (1/  ( 1 + interest rate ) ^ number of periods)

Present Value = 6,000 x (1/ ( 1 + 0.08) ^ 5)

Present Value  = 6,000 x 0.68058

Present Value = $4,038

4 0
2 years ago
what is the accounting measurement of an insurance company's future obligations to its policy owners?
zvonat [6]

Answer:

provisions / accruals

Explanation:

see above in the answer, both mean basically the same but in insurance terms accrual is more correct

8 0
3 years ago
Which of the following would further an economic goal of efficiency?
max2010maxim [7]

Answer:

The correct answer is (C)

Explanation:

Economics is all about allocating limited resources to attain maximum utility. In that regard, efficiency can be achieved by giving contracts to companies with higher productivity. These companies are all about attaining maximum productivity by investing limited resource. More productivity will increase the utility, and that will improve economic efficiency. So it is critical to give projects and contracts to certain companies which can increase the overall productivity.

7 0
3 years ago
Which of the following statements are true about this natural monopoly? Check all that apply. In order for a monopoly to exist i
NNADVOKAT [17]

Answer: The following statements are true about this natural monopoly:<em> </em><u><em>It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.</em></u>

Natural monopoly is a form of monopoly that persists because of start-up costs of administrating a business organization in a particular industry. A organization with natural monopoly will be the only supplier of a commodity or service in an industry.

5 0
3 years ago
Consider a 30-year 8 percent bond, paying coupon semi-annually, and selling for $896.81 today (note that the yield is 9 percent)
Lemur [1.5K]

Answer: See explanation

Explanation:

Based on the information given, we should note that the bond will trade at par at $1000 after six month

The holding period return will be:

= [ P1 - P0] / P0

= [ 1000 - 896.81 ] / 896.81

= 103.19 / 896.81

= 0.1151

= 11.51%

Then, the Annualized rate will be:

= HPR at 6 Months / 6/12

= HPR × 12 / 6

= 11.51% × 12 / 6

= 11.51% × 2

= 23.01%

Annualized Rate = 23.01%

7 0
2 years ago
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