Answer:
d. We should accept the offer because it would increase our net operating income
Explanation:
A differential analysis only includes relevant costs. This means that only costs that are affected by the special order are considered. In this case, variable costs are the only relevant costs, since fixed costs will occur regardless of the acceptance or rejection of the special order. This special order will increase the company's operating profits by ($65 - $15) x 100 = $5,000
The US government intervened during the subprime mortgage crisis (significant declines in home prices and mortgage deliquencies and foreclosures) because of numerous government bailouts. Thus, the US government tried to stabilize the their economic system during 2007-2009. It's a sad story because many American people were forced to file bankruptcy and foreclosure :(
Answer:
a. $265,336
Explanation:
we are told to calculate which amount will make both payments equal:
- payment 1 = $1,000,000 in 5 years
- payment 2 = $500,000 now + ? in 5 years
in order to be able to compare them, we must determine the value of the $500,000 paid now in 5 years:
future value = present value x (1 + interest rate)ⁿ
future value = $500,000 x (1 + 0.08)⁵ = $734,664
$1,000,000 = $734,664 + ?
? = $1,000,000 - $734,664 = $265,336
Answer:
The days' sales in receivables are B.148.37 days
Explanation:
The days' sales in receivables is calculated by using following formula:
The number of days' sales in receivables = 365/Accounts receivable turnover
In there:
Accounts receivable turnover = Net Credit Sales /Average Accounts Receivable
E-Shop, Inc. has net sales on account of $1,500,000 and average net accounts receivable of $610,000.
Accounts receivable turnover = $1,500,000/$610,000 = 2.46 times
The number of days' sales in receivables = 365/2.46 = 148.37 days
Answer:
I got a warning for sponsoring myself
