1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nina [5.8K]
2 years ago
14

Sharon works for a cereal manufacturing company. Her company recently built a manufacturing facility in Canada and agreed to tak

e 15 percent of the cereal produced as partial payment over a ten-year period. What form of countertrade is her company pursuing?a.offsetb.barterc.countertraded.buyback
Business
1 answer:
sergejj [24]2 years ago
4 0

Answer:

d. buyback

Explanation:

The scenario that is being described is a form of countertrade known as buyback. There are two reasons why this usually happens. The first is that the manufacturing company has limited access to liquid funds in the country which they are currently located and the goods provide better value. The second circumstance would be that they believe that the product being produced will increase in value and their profits will increase by holding the product as opposed to liquid funds.

You might be interested in
You have just retired with savings of $2 million. If you expect to live for 57 years and to earn 7% a year on your savings, how
galben [10]

Answer:

Annual withdraw= $143,023.66

Explanation:

Giving the following information:

Present value (PV)= $2,000,000

Number of periods (n)= 57

Interest rate (i)= 7% a year

<u>To calculate the annual withdrawal, we need to use the following formula:</u>

Annual withdraw= (PV*i) / [1 - (1+i)^(-n)]

Annual withdraw= (2,000,000*0.07) / [1 - (1.07^-57)]

Annual withdraw= $143,023.66

6 0
3 years ago
The need for safety stock can be reduced by an operating strategy which: question 4 options: decreases ordering costs increases
BigorU [14]
The answer is decreases<span> lead time variability.
Safety stock refers to the amount of stocks that set aside by the company in order to prepare for stockouts.
If the company decrease lead time variability, it will give more time for company to prepare between orders and delivery, which will reduce the probability of safety stock usage.</span>
8 0
3 years ago
Gasoline prices typically rise during the summer, a time of heavy tourist traffic. A "street talk" feature on a radio station so
mars1129 [50]

Answer:

Explanation:

From an economist perspective, the demand and supply model predict that when there is an increase in demand (more people demand more gasoline because of the heavy tourist traffic) prices will increase, but the equilibrium quantity (quantity supplied, and quantity demand are equal) increases too. In the demand and supply graph, an increase in demand shifts the demand curve to the right (the graph attached shows that price changes from p1 to p2 and quantity changes from q1 to q2). Then, the economist perspective differs from the tourist perspective because prices do not rice because companies use excuses to "jack up" them, they rice because of the demand and supply model predicts it.

7 0
3 years ago
A bus company believes that its diesel fuel expenses might rise in the coming year and wants to create a hedge against the incre
alexgriva [62]

Answer:

The contract produced savings of $3,250

Explanation:

Calculation to determine the economic substance of the futures contract

First step is to calculate the Increased in price of diesel fuel

Increase in diesel fuel price=$3.50/gallon to $3.85/gallon

Increase in diesel fuel price=.35/gallon

Second step is to calculate the amount saved by the firm

Amount saved=$0.35 × 10,000 gallons

Amount saved=$3,500

Now let determine the economic substance of the futures contract

Futures contract economic substance=$3,500 − $250

Futures contract economic substance=$3,250

Therefore the economic substance of the futures contract is $3,250

4 0
2 years ago
The following information is from the 2019 records of Fast Lane Racing​ Gear: Accounts​ receivable, December​ 31, 2019 $ 41 comm
Snezhnost [94]

Answer:

Calculate the ending balance of Allowance for Bad​ Debts, after the adjustment for bad debts​ expense, at December​ 31, 2019.

Dr Bad Debt Expense $ 9,700

Cr Allowance for Uncollectible Accounts $ 9,700

Explanation:

  • December​ 31, 2019  

Dr Accounts Receivable  $ 41,000

  • Prior to adjustment  

Dr Allowance for Bad​ Debts $ 1,700

  • Net credit sales for 2019  

Credits Sales $ 177,000

  • Management estimates that $ 8 comma 000 of accounts receivable will be uncollectible.  

Dr Bad Debt Expense $ 9,700

Cr Allowance for Uncollectible Accounts $ 9,700

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of accounts receivables as CREDIT.

Because the company has a debit balance in that account it's necessary to register an entry that compensate the DEBIT value and reflect A CREDIT estimated as % of account receivable.

  • FINAL Balance  

Dr Accounts Receivable  $ 41,000

Cr Allowance for Uncollectible Accounts $ 9,700

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit)  with accounts receivable (credit), with this we are recognizing the bad credit of the company.

4 0
3 years ago
Other questions:
  • The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year:
    8·1 answer
  • In spending all his income on beer and pizza, Fred finds that the marginal utility of the last pizza he consumed is 8, and the m
    8·2 answers
  • One of the​ trade-offs Tesla faces is between safety and the maximum range someone can drive an​ all-electric car before having
    10·1 answer
  • Company A estimates that it needs 30% of sales in net working capital. In year 1, sales were $1 million and in year 2, sales wer
    5·1 answer
  • At an activity level of 6,900 units in a month, Zeus Corporation's total variable maintenance and repair cost is $408,756, and i
    11·1 answer
  • Alliance Company budgets production of 35,000 units in January and 39,000 units in the February. Each finished unit requires 4 p
    6·2 answers
  • ASAP! Giving brainliest for CORRECT awnser.
    15·2 answers
  • Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
    6·1 answer
  • Giám đốc Thắng rất lo lắng về quyết định chọn người cho vị trí quản lý ca đêm của công ty. Cuối cùng anh Thắng đã chọn được anh
    6·1 answer
  • I make 100,000 a day but i need more how can i get more without customers getting mad??
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!