Answer:
James should switch to a higher-quality fertilizer to ensure his crops grow well.
Explanation:
If he switches to a higher-quality fertilizer, his plants will grow better, and as a result they will sell better.
Answer:
$16,300
Explanation:
When a company makes sales on account/credit, revenue is recognized as long as the recognition criteria is met. The entries posted are debit accounts receivable and credit revenue.
Should the company assess that part (or even all) of these receivables may be incollectible, a provision is made. This requires that the amount so determined by the company that may be incollectible is accounted for by
Debit Bad debt expense
Credit Allowance for doubtful debt
Hence the bad debt expense to be recorded is $16,300
Answer:
a) 187,200 applied overhead
b( Overhead T-account
Overhead
<u> Debit Credit </u>
187,200
225,000
<u> 37,800 </u>
225,000 225,000
Balance: 0
c)
Cost of goods sold 37,800 debit
Factory overhead 37,800 credit
Explanation:
78,000 machine hours x 2.40 dollar per hour = 187,200 applied overhead
incurred overhead: 225,000
applied overhead 187,200
as the actual overhead is above the applied amount we underapplied we need to increase it by the difference:
225,000 - 187,200= 37,800
Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
Answer:
The correct answer is option b.
Explanation:
Oligopoly is the form of market where there are few firms which are interdependent on each other. The price and output decisions of a firm affect its competitor firms in the market who are likely to react accordingly.
That's why an oligopoly firm takes into account the reaction of its rival in making price-output decisions.