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Rashid [163]
3 years ago
15

Swifty Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signe

d a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2017, at an agreed price of $382, 800. At December 31, 2017, the raw material had declined in price to $346, 730. What entry would you make on December 31, 2017, to recognize these facts? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Business
1 answer:
Doss [256]3 years ago
3 0

Answer:

unrealized loss   38,070 debit

    account payable      38,070 credit

Explanation:

as the commitment is for 382,800

but the price lower to 345,730

there is a loss for thecompany as will be doing a purchase for a higher price than market: 38,070

But, as the contract has not been completed the loss is unrealized price can change in the future as well therefore it will not be reocgnize right away and no impact in the income statmeent it will be part of other comprehensive income.

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Martha estimates that the fixed costs associated with opening her new hair salon are $100,000. She expects the salon to attract
Llana [10]

The Correct Awnser is (A) because when you do the math, thats what you come up with

4 0
3 years ago
You are paying an effective annual rate of 18.974 percent on your credit card. The interest is compounded monthly. What is the a
Kipish [7]

Answer:

17.5%

Explanation:

Effective annual rate is a yearly rate of return which includes the compounding effect. APR is the simple rate of return which is being paid on the principal amount that is being invested.

Formula for Effective Interest rate

EAR = ( 1 + APR/n )^n -1

0.18974 = ( 1 + APR/12 )^12 -1

0.18974 + 1 = ( 1 + APR/12 )^12

1.18974 = ( 1 + APR/12 )^12

(1.18974)1/12 = (( 1 + APR/12 )^12 )1/12

1.0146 = 1 + APR/12

1.0146 - 1 = APR / 12

0.0146 = APR / 12

APR = 0.0146 x 12

APR = 0.175 = 17.5%

3 0
3 years ago
Steve is interested in learning how to be a single agent business broker. he needs to know the steps in selling a business. all
RSB [31]

I think the correct answer to this would be:

“Represent the buyer and obtain a purchase agreement.”

<span>This is because the broker only acts as a middle man. Brokers only handle customer orders to buy and match them up with sellers who are willing to sell. The job stated above is already handled by the realtors or buyers themselves.</span>

6 0
3 years ago
David, the marketing director of an automobile manufacturing company, enrolled a new group of trainees in experiential programs
Wittaler [7]

Answer:

The correct answer is E. The trainees expressed a desire to be challenged and get out outside of their comfort zone but within limits that kept their motivation strong.

Explanation:

It is likely that the students presented behavior that did not lead to a specific conclusion about their inclinations towards the customer, which generates some uncertainty in the marketing area considering that indecision can have a negative impact on the sales process. It is then required to take them to a training that teaches them the sales techniques based on the orientation of the product.

7 0
3 years ago
Booher Book Stores has a beta of 1.0. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 6%. The market ri
mart [117]

Answer:

Cost of equity =  10.5%

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta. </em>

Under CAPM, Ke= Rf + β(Rm-Rf)  

Rf-risk-free rate (long-term i.e 10 year treasury bill rate), β= Beta, Rm= Return on market., Ke- Return on equity (cost of equity)

This model can be used to work out the cost of equity as follows:

Ke= Rf + β (Rm-Rf)

Rf- 6%, β= 1.0, Rm- 10.5, E(r)- ?

Ke = 6% + 1.0× (10.5 -6)% = 10.5%

Ke  = 10.5%

Cost of equity =  10.5%

3 0
3 years ago
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