Answer:
Management has framed certain principles, which are flexible in nature and change with the changes in the environment in which an organization exits.
The debit balance at the end of the fiscal year becomes a remaining amount of the revenue (expense) or a deficit from the estimated revenue. This is reported on the income statement and followed on the next report that should be addressed on to the future revenue.
Answer:
trade deficit.
Explanation:
When import is greater than export, it is a trade deficit.
When export is greater than import, it is a trade surplus.
I hope my answer helps you
The free cash flow can be calculated as below:
Revenue 12000000
Less: Expense (8000000)
Less: Depreciation (1500000)
Earnings Before Tax 2500000
Less Tax (750000)
Earnings after tax 1750000
Add Depreciation 1500000
Total Cash Earnings 3250000
Less: Change in Working Capital (500000)
Less : Purchase of Asset (700000)
Free Cash Flow 2050000
Thus Free Cash Flow can be calculated as above.
Answer:
When a discount is given as 2/12, Net 32, it means that the customer is allowed a 2% discount if they pay off their purchase in 12 days. If they don't, they would have to pay off the full amount in 32 days.
The Cost of a firm's credit is calculated by the formula:
= Discount %/ ( 100% - Discount %) * (360/Allowed payment days - Discount days)
a. 2 / 12, Net 32
= (2%/ (100 - 2% )) * (360 / (32 - 12))
= 36.73%
b) 3/15, Net 36
= (3%/ (100 - 3% )) * (360 / (36 - 15))
= 53.02%
c) 2.5/18, Net 35
= (2.5%/ (100 - 2.5% )) * (360 / (35 - 18))
= 54.30%
d) 2.25/20, Net 38
= (2.25%/ (100 - 2.25% )) * (360 / (38 - 20))
= 46.04%
