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BlackZzzverrR [31]
3 years ago
11

Home Corporation will open a new store on January 1. Based on experience from its other retail outlets, Home Corporation is maki

ng the following sales projections: Cash Sales Credit Sales January $60,000 $40,000 February $30,000 $50,000 March $40,000 $60,000 April $40,000 $80,000 Home Corporation estimates that 70% of the credit sales will be collected in the month following the month of sale, with the balance collected in the second month following the month of sale. In a cash budget for April, the total cash receipts will be:
Business
1 answer:
andriy [413]3 years ago
3 0

Answer:

$97,000

Explanation:

The computation of the total cash receipts for the month of April is shown below:

= Cash sales in April + (Credit sales in February × following second month percentage) + (Credit sales in March x following month percentage)

= $40,000 + ($50,000 x 30%) + ($60,000 x 70%)

= $40,000 + $15,000 + $42,000

= $97,000

We simply added the cash sales for one month and the credit sales for two months so that the total cash receipts could come

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A company has preferred stock that can be sold for​ $21 per share. The preferred stock pays an annual dividend of​ 3.5% based on
NeX [460]

Answer:<em> </em><em>Therefore, the cost of preferred stock is </em><em>17.72%.</em>

Given:

Selling price (preferred stock) = $21

Annual dividend = 3.5%

Flotation costs = $1.25

We can compute the cost of preferred stock as:

cost \ of \ preferred \ stock = \frac{annual \ dividend}{( Price\ of \ stock - Flotation\ costs )}\\

Cost of preferred stock = 3.5 / ($21 - $1.25)

Cost of preferred stock = 17.72%

<u><em>The correct option is (b)</em></u>

3 0
3 years ago
Read 2 more answers
A nation can achieve higher economic growth if: Select one: a. it devotes more resources to research and development. b. the pro
Evgen [1.6K]

Answer:

The correct answer is A

Explanation:

Economic growth is defined as the rise in the capacity of the economy for producing or manufacturing the goods and services as compared from one year to another.

And the economic growth is determined in terms of GNP (Gross National Product) or in terms of GDP (Gross Domestic Product).

So, if the nation want to accomplish the higher level of economic growth, then the nation should devote more amount of resources in R & D (research and development).

5 0
3 years ago
The payback method is often more useful than the net present value method for evaluating systems projects because the effective
attashe74 [19]

Answer:

True

Explanation:

Payback method considers the time that a project takes to payback the capital invested in it from its net cash flows.

Projects that have a short payback period are preferred by investors because the capital invested takes a shorter time to be repaid. That is shorter risk period.

Net present value is a consideration of the expected future cash flows in a project. It is the difference between the net present value of an asset and the present value of cash flows over a certain period. It's calculation is based on a lot of assumptions so it is probe to error.

Payback method is preferred because the effective lives of information system tend to be short and shorter payback projects are often desirable.

3 0
3 years ago
Read 2 more answers
Will Jones, LIP is a small CPA firm that focuses primarily on preparing tax returns for small businesses.
Nonamiya [84]

Answer and Explanation:

1. The computation of the total annual cost in each case is shown below:

Total annual cost = Annual fee + license per tax return × number of returns filed

a. For 332 returns

= $403 + $11 × $332

= $403 + $3,652

= $4,055

b. For 424 returns

= $403 + $11 × $424

= $403 + $4,664

= $5,067

c. For 522 returns

= $403 + $11 × $522

= $403 + $5,742

= $6,145

2. Now the cost per return is

Cost per return = Total annual cost ÷ number of returns filed

a. For 332 returns

= $4,055 ÷ 332 retunrs

= $12.21

b. For 424 returns

= $5,067 ÷ 424 returns

= $11.95

c. . For 522 returns

= $6,145 ÷ 522 returns

= $11.77

4 0
3 years ago
If the maker of a promissory note fails to pay the note on the due date, the note is said to be A. displacedB. disallowedC. dish
nalin [4]

Answer:

The answer is C: dishonored

Explanation:

When the maker of a promissory notes fails to pay on the due date, the promissory note is called dishonored. With a promissory note, a buyer makes a short-term commitment to pay a supplier for merchandise within a stated period of time and at a certain interest rate. The maker of the note is the party promising to make payment, the payee is the party to whom payment will be made, the principal is the stated amount of the note, and the maturity date is the day the note will be due.

It is called dishonored because the maker made a promess to pay a determined amount in a period of time. By failing at honoring it's word, the note its called dishonored.

4 0
3 years ago
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