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Scilla [17]
3 years ago
9

Lacuna Inc. factors $12,000,000 of its accounts receivables with recourse for a finance charge of 3%. The finance company retain

s an amount equal to 10% of the accounts receivable for possible adjustments. Lacuna estimates the fair value of the recourse liability at $600,000. What would be recorded as a loss on the transfer of receivables
Business
1 answer:
Elena L [17]3 years ago
5 0

Answer:

The loss on transfer of receivables is $960,000

Explanation:

Sales amount                                       $12,000,000

Finance charge 3%*$12 million              ($360,000)

Retention amount 10%*$12 million           ($1,200,000)

Cash upfront                                           $ 10,440,000

The recourse liability is $600,000,which means that additional liability of $600,000 would be incurred by Lacuna Inc, if the total amount from the receivables is not received owing to the fact that the factoring is with recourse.

The loss on transfer of receivables is shown as:

Finance charge                    $360,000

Recourse liability                  $600,000

total loss                                 $960,000

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Answer:

C. workers with more years of formal schooling are less likely to be affected by ability, effort, and chance.

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The <em>signalling theory in education</em> tells us that employees send "signals" to their employees regarding their education. In other words, employers are willing to pay higher wages to employees with additional years of formal schooling.

This means these qualified workers have their wage primarily defined by their education level, which does not always reflect their true skill-set (the output of ability and effort).

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3 years ago
When the demand curve shifts to the left and all else is held constant, the equilibrium price ________ and the equilibrium quant
rewona [7]

When the demand curve shifts to the left and all else is held constant, the equilibrium price <u>falls</u> and the equilibrium quantity <u>falls</u>.

<h3>The types of chart.</h3>

In Economics, there are two main types of chart that can be used to illustrate the relationship between the total quantity of goods or services that are demanded by consumers and the total quantity of goods or services that were supplied by a manufacturer (producer) at a particular price and these include the following:

  • Supply schedule
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<h3>What is an equilibrium?</h3>

An equilibrium can be defined as the point on a supply and demand chart where the demand curve and the supply curve intersect.

In conclusion, the equilibrium price and the equilibrium quantity would <u>fall</u> when the demand curve shifts to the left and all else is held constant.

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6 0
2 years ago
Hat Tricks Company (HTC) is a Buffalo, New York, manufacturer of hats and gloves. Recently, the company purchased a new machine
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The selling price per hat is mathematically given as

S=$62

<h3>What is the selling price per hat?</h3>

Direct labor hours required to produce first 100 hats=10hr

Direct labour cost =20hr*60$/hour = $1200

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Total Direct cost. = $3100

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The selling price per hat = $62

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2 years ago
Which of the following statements is(are) false regarding the direct method of allocating service department costs?
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Correct Question:  Which of the following statements is (are) false regarding the direct method of allocating service department costs?

(A) The selection of an allocation base in the direct method is easier than the selection of an allocation base in the step method.

(B) Once an allocation is made from a service department using the direct method, no further allocations are made back to that department.

A. Only A is false.

B. Only B is false.

C. Neither A nor B is false.

D. Both A and B are false.

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A, Only A is false

Explanation:

The selection of an allocation base in the direct method is easier than the selection of an allocation base is false in that allocation base in step method allocates support costs to the support departments and the operating departments that recognise the services provided betwenn thos suport departments.

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8 0
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Answer:

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