Answer:
D. $1,375,000
Explanation:
Funn Company's
(NRV of receivables= Receivables- Ending receivable uncollectible
ADA =$1,500,000−$125,000
= $1,375,000
Therefore the accounts receivable amount expected to be collected after adjustment is $1,375,000.
Answer:
C. Discount rate or required return.
Explanation:
This is known to be a key concept in equity evaluation and plays a vital role in corperate finance.
It can also be explained as the required rate of return is the minimum return an investor will accept for owning a company's stock, as compensation for a given level of risk associated with holding the stock. Its application is also used in corporate finance to analyze the profitability of potential investment projects.
The formula also uses the risk free rate of return, which is typically the yield on short-term U.S. Treasury securities. The final variable is the market rate of return, which is typically the annual return of the investor. The required rate of return is the minimum return an investor will accept for owning a company's stock, that compensates them for a given level of risk.
Inflation also is been factored in the calculation, which finds the minimum rate of return an investor considers acceptable, taking into account their cost of capital, inflation and the return available on other investments. It is also a subjective minimum rate of return, and a retiree will have a lower risk tolerance and therefore accept a smaller return than an investor who recently graduated college.
Answer:
$7500
Explanation:
An expense stop is a tool used by landlords to limit their operating costs and maintain predictable operating costs over the terms of the lease. Hence, even though the operating expense is $6.50, the landlord is only accountable for $6.
The operating costs annually would be: 1500 x 6 = 9000
(Even though the office space is vacant for one month of the year, maintenance costs will still be incurred throughout the year, whether leased or vacant)
Annual income :
1500 x 12 = $18000 (12 months)
It should be noted though that the office space is vacant for one month. Hence, landlord only receives 11 months worth of leased rent. Actual income : (18000/12) x 11 = $16500
Net operating income annually : Total income - Total expenses = $16500 - $9000 = $7500
Answer:
C. Rely heavily on knowledgeable salesclerks.
Explanation:
A specialty store is explained to be a shop, usually retail, that offers specific and specialized types of items. They always seem to focus on selling a particular brand or a particular type of product. For example, a store that exclusively sells cell phones or video games would be considered specialized.
By this definition, the store can carry a diverse range of products. Though a store might specialize in clothing, the garments could be for children, teens, or adults.
Because of its size and managerial standards it is likely denoted that it rely heavily on knowledgeable salesclerks for progress, results and mostly accounts and computation.