Answer:
5.403%
Explanation:
Calculation for the expected return on the market
Using this formula
Expected return =(Expected return-Risk-free rate of return)/Stock beta +Risk-free rate of return
Where,
Expected return=12.10%
Risk-free rate of return=4.6%
Stock beta =1.40%
Let plug in the formula
Expected return =(0.121-0.046)/0.014+0.046
Expected return =0.075/0.014+0.046
Expected return=5.357+0.046
Expected return =5.403%
Therefore the expected return on the market will be =5.403
Answer:
1. Depreciation or Amortization of Assets
2.Profit or Loss on sale of Assets
Explanation:
Operating Cash Flow is very different to Net Income. The earlier represent cash movement and the latter represent profit movement.Cash and profit literally are different.
So in the profit calculation you would find some non-cash items that include estimate of depreciation expense or amortization cost of intangible assets or a profit or loss on sale of a PPE item.
Whereas in Operating Cash Flow determination only cash items are considered and all non-cash items are removed from profit of the year to reach an amount of Operating Cash Flow.
Answer:
D) $31.
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = Estimated manufacturing overhead ÷ estimated direct labor hours
where,
Estimated manufacturing overhead is
= Salary of factory supervisor + Heating and lighting costs for factory + Depreciation on factory equipment
= $37,600 + $22,000 + $5,600
= $65,200
And, the direct labor hours is 2,100
So, the predetermined overhead rate is
= $65,200 ÷ 2,100
= $31
Answer:
B. $9,957.
Explanation:
The computation is adjusted amount for Uncollectible account expense is shown below:
= The estimated total uncollectible accounts + debit balance of Allowance for uncollectible accounts
= $7,322 + $2,635
= $9,957
For computing the adjusted amount we added the estimated total uncollectible accounts and the debit balance of Allowance for uncollectible accounts
