Answer: $5,440
Explanation:
When using the percent of sales method to determine bad debts, the company estimates a percentage that it believes will results in uncollectible debt and then applies it to the sales/revenue figure. The figure that is calculated is then debited along with the debit balance on the Allowance for doubtful accounts to the Bad debts account for the year and credited to the Allowance for doubtful accounts.
This company estimates that they will have 0.6% of credit sales uncollectible.
There are also $790,000 in sales of which all are on credit.
The Uncollectible estimate is therefore,
= 790,000 * 0.6%
= $4,740
This figure is then added to the debit amount on the Allowance for Uncollectible Accounts.
= 4,470 + 700
= $5,440
Note; A debit balance on the Allowance for doubtful debt account signifies that the bad debts were higher than anticipated the last time. This is why the figure is added to the current bad debts expense.
Economists have identified four types of competition. Perfect competition, monopolistic competition, oligopoly, and monopoly.
Answer:
See explanations for step by step aoproach to answer and see attachment for graph
Explanation:
Plot E(R) = Rf + Beta*(Rm-Rf) as function of beta.
at 1.4
E(R) = 5% + 1.4*(12-5) = 14.8%
E(R) = WfRf + Wa*E(Ra)
= 0.4*5% + 0.6*14.8%
= 10.88%
3. Since, the beta of risk free asset is zero
Bp = wf*Bf + wa*Ba
0.6 = 1.4*wa
wa = 42.8%
wf = 57.2%
d. 14% = 5% + B*(12%-5%)
B = 9/7 = 1.28
e. 2 = wfBf + waBa
wa = 2/1.4
= 142%
It means the portfolio is created by leveraging. Take 42% of value on risk free rate as loan and invest in risky asset.
Answer:
Reference is a relationship between objects in which one object designates, or acts as a means by which to connect to or link to, another object. The first object in this relation is said to refer to the second object. It is called a name for the second object.
Explanation: