Answer:
The correct answer is $320.
Explanation:
According to the scenario, computation of the given data are as follows:
MSFT price at expiry (S_T) = $250
MSFT with strike (K) Contract 1 = $220
MSFT with strike (K) Contract 2 = $120
So, we can calculate the payoff by using following formula:
Payoff = [(Stock price at expiry (ST) - Strike price of $220)] + [(Stock price at expiry (ST) - Strike price of $120)]
BY putting the value, we get
Payoff = ($250 - $220) + ($250 - $120)
= $30 + $130
= $160
As there are 2 contracts, then
Total payoff = $160 × 2
= $320
Answer: $36,700
Explanation:
Given that,
Wages = $41,000
Interest income = $700
Jason and Mary’s deductions = $5,000
Itemized deductions = $14,000
Adjusted gross income = Wages + Interest income - Jason and Mary’s deductions
= $41,000 + $700 - $5,000
= $36,700
Answer:
$4,412
Explanation:
If the company estimates that $4,412 of accounts receivables will be uncollectible, then it must record that number under the Allowance for Bad debts Account.
That account started the year with a $3,284 balance, it decreased by $1,826 (debt written off), and then must be adjusted by crediting $2,954 so its balance = $4,412 on December 31.
The answer is functional.
Functional groups in working context, means a group of people that are categorized by their work function – or more specifically the specialized work field that they are responsible for.
This is apparent in the example, with classifications such as accounting department and customer service department. Other examples would be marketing department and research & development department.
Answer:
The Net Cash Flow is $9,300,000.
Explanation:
A statement of cash flows with amounts in thousands can be created to determine the Net Cash Flow as follows:
Ruston Company
Statement of Cash Flows
For the Year 2020
<u>Details $'000 </u>
Net Income 9,100
Adjustments from Operating Activities <u> 1,100 </u>
Net Cash Flow from Operating Activities 10,200
Net Cash Flow from Investing Activities (4,300)
Net Cash Flow from Financing Activities of <u> 3,400 </u>
Net Cash Flow <u> 9,300 </u>
Since the amount is in thousands, that implies that the Net Cash Flow is $9,300,000.
