Answer:
B. $42,000
Explanation:
Trade receivables refers total amounts that customers of a company are owing the company for goods or services sold to them.
For Michael Co., this can be calculated as follows:
Michael's total trade receivables = 3-month note due from Michael's main customer + Due and unpaid from this month's sales + Due and unpaid from last month's sales
Therefore, we have:
Michael's total trade receivables = $12,000 + $19,000 + 11,000 = $42,000.
Therefore, Michael's total trade receivables is $42,000.
Answer:
The price of the stock today will be $66.19
Explanation:
To calculate the price of a stock whose dividends will grow at a constant rate forever is calculated using the constant growth model of dividend discount model approach. To calculate the price of the stock today using this model, we use the following formula,
P0 = D1 / r - g
We will first calculate the price of the stock at t=8 using D9 because we use the next period's dividend to calculate the price of a stock. We will then discount back the price at t=8 to today's price.
P8 = 14.25 * (1+0.06) / (0.14 - 0.06)
P8 = $188.8125
The price of the stock today will be,
P0 = 188.8125 / (1+0.14)^8
P0 = $66.189 rounded off to $66.19
Answer:
The price of the product is $59
Explanation:
Contribution margin is the net of the selling price and variable cost per unit. Contribution margin ratio is the ratio of contribution per unit to selling price per unit. As given below
Contribution margin ratio = Contribution margin per unit / Selling price per unit
23% = $13.57 / Selling price per unit
Selling price per unit = $13.57 / 23% = $59
Answer: $0
Explanation:
Available-for-sale securities simply refers to the debt securities that are bought but with the intention that they'll be sold before they mature. They're typically reported at their fair value.
The gain that will be reported by Jeremiah Corporation in the December 31, 2021, income statement relative to the portfolio is $0. This is because for available-for-sale securities, there'll be no reports on holding gains or losses incurred.