Answer:
Red Oak 3,136
Cyril Inc 1,470
Total net revenue 4,606
Explanation:
Red Oak
4,000 - 20% trade-in allowance = 3,200
if payment within discount period: 3,200 x 2% = 64
3,200 - 64 = 3,136 for Red Oak
Cyril Inc
1,500 not qualificable for allowance
payment within discount period
1,500 x 2% = 30
1,500 - 30 = 1,470 for Cyril Inc
Answer:
Current share price is $59.88
Explanation:
First calculate present value of all four years dividend
Year Calculations PV
1. 14 x (1.10)^-1 $12.73
2. 10 x (1.10)^-2 $8.26
3. 9 x (1.10)^-3 $6.76
4. 4.5 x (1.10)^-4 $3.07
As the Dividend in fifth year will grow for indefinite period of time, This is the perpetuity payment. The value of share can be determined by calculating the present value of perpetuity payment.
Dividend in the fifth year = $4.5 x ( 1 + 4% ) = $4.68
The formula for the present value of perpetuity is as follow
Present value of perpetuity = Dividend / Required Rate of return
Value of Stock = Dividend / Required Rate of return
Value of Stock = $4.68 / 10%
Value of Stock = $46.8
This the value in fifth year calculate it present value
Today's value = $46.8 x ( 1 + 10% )^-5 = $29.06
Now add the all present values
Total Present value = $12.73 + $8.26 + $6.76 + $3.07 + $29.06 = $59.88
Answer:
$267,000
Explanation:
When a company assesses that some of its receivables (due from customers who bought goods on account/credit) may not be collectible, the required entries are debit bad debt expense and credit allowance for bad debt.
The credit to allowance for bad debt is netted off the debit in accounts receivables to determine the net receivables in the balance sheet at the end of the period.
Hence Craft will show on its year-end balance sheet a net realizable value of its accounts receivable
= $295,000 - $28,000
= $267,000
Salary, minimum wage, and commission.
Hope this helps
Answer: True, unless you're on your own it kinda does, considering bills, financial stuff, etc.
