Something that would not be an advantage will be that people will not pay attention to the advertisments in when it runs and the bussnies might die.
Answer:
d) 38.4 days
Explanation:
Accounts receivable = 801,000 + 901,000 = 1,702,000
Average Account receivables = 1,702,000 / 2 = 851,000
Net credit sales = $8,049,000 / 851,000 = 9.5
The average collection period of the receivables in terms of days = 365 days / 9.5 =38.4 days
Accounts receivable days = 38.4 days
Answer:
(1) 158,820
(2) 187,800
Explanation:
Per Unit Average Cost:
= Cost of Goods Sold with Average Cost ÷ Total Units Sold
= 174,000 ÷ 30,000
= 5.80
Cost of Goods Available for Sales:
= (Total of Inventory + Purchased Units) × Per Unit Average Cost
= 63,000 × 5.80
= 365,400
Cost of Units Purchased in 2021:
= Cost of Goods Available for Sale - Opening Inventory × Unit Cost
= 365,400 - 23,000 × 5
= 250,400
Per Units Cost of Units Purchased in 2021:
= Cost of Units Purchased in 2021 ÷ Total Units Purchased
= 250,400 ÷ 40,000
= 6.26
Part 1:
Cost of Goods Sold - FIFO
Cost of Goods Sold:
= (Opening Inventory × Unit Cost) + (40,000 - 33,000) × Per Units Cost of Units Purchased in 2021
= 23,000 × 5 + 7,000 × 6.26
= 158,820
Part 2:
Cost of Goods Sold - LIFO
Cost of Goods Sold:
= Units sold in 2021 × Per Units Cost of Units Purchased in 2021
= 30,000 × 6.26
= 187,800
PAPPAS IS LIABLE ON THIS CONTRACT.
This is because, during the time that the contract was been formed there was no mention of Forever Green landscaping and Irrigation at all. The money paid by the homeowners went to Kevin Pappas personal account. Now, that he is not able to deliver on the contract, he is personally liable for the breach of contract. A third party that was not disclosed during contract formation can not be liable after the contract has been formed.
Answer: .27
Explanation:
The Debt to Equity Ratio is the amount of Debt per dollar that the company owes per dollar of Equity. It must add up to 1.
The Weighted Average Cost of Capital measures just how much a company needs to pay to it's capital holders including shareholders and debt holders.
The formula is,
WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of debt)
Remember that Debt is tax deductible so the After tax cost of debt should be,
= 5.2% ( 1 - tax rate)
= 5.2% * ( 1 - 39%)
= 3.172%.
The debt weight is the amount of debt that the company has per dollar so that means that it is also the Debt to Equity ratio. Denote it as 'x' to find it. Remember that they must add up to one.
WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of debt)
8.59% = 10.6% ( 1 - x) + 3.172%( x)
8.59% = 10.6% - 10.6%x + 3.172%x
8.59% = 10.6% - 7.428%x
7.428%x = 10.6% - 8.59%
7.428%x = 2.01%
x = 0.271
= 27%
Debt to Equity is 0.27.