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n200080 [17]
3 years ago
8

AJ plans to attend a retreat on mindfulness. He paid a $500 nonrefundable registration fee, made a reservation at a hotel that c

osts $200, and budgeted $150 for gas and food Two days before the retreat, he becomes ill. Assuming he is able to cancel the hotel without penalty, AJ's sunk cost equals:
A) $150
B) $500
C) $650
D) $850
Business
1 answer:
galina1969 [7]3 years ago
4 0

Answer: AJ's sunk cost equals $500. Option B.

Explanation: A sunk cost refers to a cost that has already been incurred and cannot be recovered. Sunk costs are the opposite of prospective costs.

Prospective costs refer to future costs that may be avoided if action is taken.

Therefore from the scenario presented above, we can see that:

$500 = nonrefundable registration fee.

$200 = hotel reservation.

$150 = gas and food.

Of the above costs, the sunk cost is $500.

This is because it is a nonrefundable registration fee that has already been paid for.

However, after canceling the hotel, there was no penalty, and therefore, no cost was incurred.

The money for gas and food have not even been spent, therefore the money is a prospective cost.

We can therefore see conclude that the sunk cost is $500.

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umka2103 [35]
Answer:  $403.20

Explanation:


We use a mortgage calculator to calculate the interest paid in the final payment. Since each repayment is made at the end of year, the repayments are annual payments. So, the calculator should have an annual amortization schedule to solve the problem.

I used http://www.calculator.net/loan-calculator for the calculation because it has an annual payment schedule. Then, I went under the subtitle Paying Back a Fixed Amount Periodically because the payments are equal. In that online calculator, I just input these data:

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Then, I clicked the calculate button and view amortization table. The annual amortization schedule is attached in this answer. 

To determine the interest paid at the final payment, I looked at payment #4 because the final payment is at the 4th year. (The loan is paid in 4 annual payments).

As seen in the attached image, the interest paid in payment #4 is $403.20. Hence, the interest paid in the final payment is $403.20.

3 0
3 years ago
Phips Co. purchases 100 percent of Sips Company on January 1, 20X2, when Phips' retained earnings balance is $320,000 and Sips'
Taya2010 [7]

Answer:

Phips' post-closing retained earnings balance on December 31, 20X2 = $577,000

Explanation:

Note: When 100% shares of a company is acquired it is treated as subsidiary and for its accounting equity method is used.

In that case all balances of subsidiary are added to balances of Parent company.

But if any dividend is received then such value is deducted from carrying value of investment, and any share in profit will be added to carrying value.

All the retained earnings balance is accumulated together of both companies.

Therefore closing balance shall be

Retained earnings balance of Sips at year end

= $120,000 + $20,000 - $8,000 = $132,000

Year end balance of Phips Alone

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3 0
3 years ago
Analysis of Accounts Receivable and Allowance for Doubtful Accounts Steelcase, Inc. reported the following amounts in its 2014 a
Naddika [18.5K]

Answer:

b. Gross Receivable = Net receivable +Allowance

2014 = $306.8 + $13 = $319.80

2013 = $287.3 + $14.5 = $301.8

Allowance as a % of Gross receivable = Allowance / Gross receivable

2014 = $13/319.80 = 0.041 =  4.1%

2013 = $14.5/301.8 = 0.015 = 1.5%

c. Average Net Accounts receivable = (Accounts receivable, net 2014 + Accounts receivable, net 2013) / 2 = ($306.8 + $287.3] / 2 = $297.05

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Receivable Turnover = 10.06 Times

d) Cash received in 2014 = Beginning Gross receivables + Net sales - Ending Gross receivables-Adjustment in allowance (Write-off 2014)

Cash received in 2014 = $301.8 + $2,989 - $319.8 - $4.3

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Total Cash received from customers in 2014 = $2,966.7 + $2.5

Total Cash received from customers in 2014 = $2969.20

6 0
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matrenka [14]

Answer:

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The answer is the Dictionary of Occupational Titles because this is a document created by the United States Department of Labor in which it establishes a big amount of different jobs in many areas and what they involve to help employers and the government to be able to define them in their organizations.

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PolarNik [594]

Answer:

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