I think it would be this answer
the people working to develop the communityb.bike paths and storesc.solar powerd.the idea to develop the housing community
Answer:
Contingent liabilities refer to those obligations which might arise in the near future based upon the happening or non happening of a certain event and it's outcome.
Such liabilities are recorded if there is likeliness of an event happening and when they can be reasonably quantified and estimated.
In the given case, the automobile manufacturer will probably be required to recall it's products. The amount can be estimated.
In such cases, such expense is to be recognized in the income statement and at the same time a liability for such expenses needs to be created in the balance sheet. Product recall refers to replacement of defective products by the manufacturer. It is similar to a warranty.
Reporting on Dec 31 would be as follows,
Warranty Expense A/C Dr. $2.5
To Warranty Liability $2.5
(being product recall liability for for 2.5 million created)
<u>Calculation of Average Collection period:</u>
It is given that Leisure products have sales of $738,800 and accounts receivable of $86,700. It order to find how long on average does it take the firm's customers to pay for their purchases, we need to calculate the Average Collection period as follows:
Average Collection period = Average Accounts Receivable *365 / Sales Revenue
= 86700*365 / 738800
= 42.83
(Note: it is assumed that Average Accounts Receivable is $86,700)
Hence, it take around <u>42.83 days </u>to the firm's customers to pay for their purchases.
Answer:
D. $2,070
Explanation:
First, convert $2500 real dollar amount at year 10 to to nominal amount;
If inflation rate is 5% per year, then in 10 years the inflation will compound to the following;
1.05^ 10 = 1.6289
Therefore, the nominal amount of your savings would be
= $2500*1.6289
= $4,072.25
Next, that would be your future value( FV), find its present value using the 7% as the discount rate. On a financial calculator, input the following;
FV = 4,072.25
I/Y = 7%
N= 10
PMT = 0
then compute present value ; CPT PV = $2,070
