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3 years ago

7

Financial risk applies to both the additional variability in earnings available to common shareholders and the additional chance

of insolvency caused by the use of financial leverage.
A) True
B) False

1 answer:

MAXImum [283]3 years ago

4 0

A, This is true for Financial risk

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May 3 Allied made its first and only purchase of inventory for the period on May 3 for 3,000 units at a price of $9 cash per uni

Airida [17]

Answer:

Explanation:

May 3

Dr merchandise inventory 27,000

Cr Cash 27,000

May 5

Dr Accounts receivable 19,500

Cr Sales 19,500

May 5

Dr COGS 13,500

Cr Merchandise inventory 13,500

May 7

Dr Sales returns and allowances 1,950

Cr Accounts receivable 1950

Dr Merchandise inventory 1350

Cr COGS 1350

May 8

Dr Sales returns and allowances 750

Cr Accounts receivable 750

May 15

Dr Cash 16464

Dr Sales discount 336

Cr Account receivable 16800

19500-1950-750 = 16800

16800*2% = 336

7 0

3 years ago

Marigold Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is avai

Mars2501 [29]

Answer:

Marigold Company

Cost of goods sold = $9,119

Ending inventory = $7,461

Explanation:

a) Data and Calculations:

Units Unit Cost Total Cost

April 1 inventory 250 $14 $ 3,500

April 15 purchase 420 17 7,140

April 23 purchase 330 18 5,940

Total 1,000 $16,580

Weighted-average costs $16.58

Sales 550

Cost of goods sold = 550 * $16.58 = $9,119

Ending inventory = 450 * $16.58 = $7,461

b) The first computation is for the total cost of goods available, which is then divided by the total units available for sale. This gives the weighted-average cost per unit. This unit cost is then multiplied with the units of ending inventory and sales to obtain the cost of the ending inventory and the cost of goods sold, respectively.

8 0

3 years ago

Friendly's quick loans, inc., offers you "ten for twelve or i knock on your door." this means you get $10.00 today and repay $12

valkas [14]

Answer:

Friendly's would say you were paying <u>1042.86% APR</u>.

Explanation:

Annual percentage rate (APR) can be described as the yearly interest rate that is paid by a borrower to a lender which is expressed in percentage term without taking compounding into consideration.

Annual Percentage Rate (APR) can be determined using the following formula:

APR = {[(Fees + Interest amount) / Principal / n] * 365} * 100 ……………… (1)

Where;

APR = ?

Fees = 0

Interest amount = Amount to repay - Amount to borrow = $12.00 - $10.00 = $2.00

Principal = Amount to borrow = $10.00

n = Number of days in the loan term = One week = 7 days

Substituting the values into equation (1), we have:

APR = {[(0 + 2) / 10 / 7] * 365} * 100

APR = 1042.86%

Therefore, friendly's would say you were paying <u>1042.86% APR</u>.

5 0

3 years ago

ohansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The

Elodia [21]

Answer:

The right solution is "$ 2.50 per DLH".

Explanation:

The given values are:

Rent,

= $ 15,000

Factor equipment's depreciation,

= $ 8,000

Indirect labor,

= $ 12,000

Production supervisor's salary,

= $ 15,000

Estimated DLHs,

= 20,000

The total manufacturing overhead will be:

= $Rent+Factory's \ equipment \ depreciation+Indirect \ labor+Production \ supervisor's \ salary$ On substituting the given values, we get

= $15000+8000+12000+15000$

= $50,000$ ($)

Now,

The predetermined overhead rate will be:

= $\frac{50000}{20000}$

= $2.50 \ per \ DLH$ ($)

3 0

3 years ago

Correll Company, which operates a mail-order clothing business, is physically located in State L. This year, the firm shipped $1

Wewaii [24]

Answer:

Correll Company

a. Yes State R residents who purchased Firm L (out-of-state) merchandise owe use tax on their purchases.

b. State R would collect $1,080,000 additional revenue ($18 million * 6%) if Correll was required to collect the use tax at the point of sale and then remit the tax collected to State R.

Explanation:

a) Data and Calculations:

Cost of merchandise to customers in State R = $18 million

State R's sales and use tax on the purchase and consumption of retail goods within the state = 6%

Amount that Correll could collect for State R = $1,080,000 ($18 million * 6%)

b) Note that Correll (Firm L) collecting the State R use tax does not affect State R residents' legal liability to pay the use tax. Unfortunately, not many people actually remit their self-assessed use tax.

6 0

3 years ago