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Leni [432]
2 years ago
14

A new project would require an immediate increase in raw materials in the amount of $12,000. The firm expects that accounts paya

ble will automatically increase $8,500. How much must the firm expect its investment in net working capital to change if they accept this project
Business
1 answer:
Mariulka [41]2 years ago
6 0

Answer: Increase by $3,500

Explanation:

The Net Working Capital of a company is calculated by subtracting Current liabilities from current assets.

Raw materials are current assets and Accounts Payable are current liabilities.

The Net working capital resulting from accepting this project is;

= 12,000 - 8,500

= $3,500

Net Working capital investment would increase by $3,500.

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A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the 10-show season
swat32

Answer:

Dr cash    $375,000

Cr unearned revenue      $375,000

Dr unearned revenue     $37,500

Cr revenue                                    $37,500

Explanation:

The total amount realized from the sale of tickets is  $375,000($250*1500)

However,the cash proceeds should be debited to cash while it is also credited to unearned revenue

The revenue from fulfilling the performance obligation=1/10*$375,000=$37,500

The $37,500 is debited to unearned revenue and credited to sales revenue as that amount has now been earned

4 0
3 years ago
John Fare purchased $6,000 worth of equipment by making a $1000 down payment and promising to pay the remainder of the cost in s
vesna_86 [32]

Answer:

C $ 596.39

total payment          7,156.68

Interest expense     2,156.68

Explanation:

6,000  -  1,000 = 5,000 amount to finance

We will calcualte the cuota of an annuity of 6 years with semianual payment at 12% annual rate.

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $5,000.00

time   12 (6 years times 2 payment per year)

rate            0.06 (12% annual we divide by 2 to get semiannual)

5000 \times \frac{1-(1+0.06)^{-12} }{0.06} = C\\

C $ 596.39

The total amount paid will be the cuota times the time of the loan:

Total amount paid

596.39 x 12 = 7,156.68‬

The interest will be the difference between the total amount paid and the principal of the loan

Interest paid

total payment          7,156.68

principal                 (5,000)

Interest expense     2,156.68

7 0
2 years ago
A Japanese steel firm sells steel in the United States and in Japan. Since the United States buys steel from a number of differe
Nostrana [21]

Answer:

Charge a lower price in the United States and a higher price in Japan.

7 0
3 years ago
THANK YOU GUYS FOR ALL THE HELP
photoshop1234 [79]
I just answered this to get a point sorry ☺
3 0
3 years ago
If the demand for insulin is inelastic, an increase in insulin prices leads to
exis [7]
Extent to which the demand<span> for a good changes when income changes.</span>
6 0
3 years ago
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