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3 years ago

List two types of discounts and explain how they work for consumers.

Business

1 answer:

Aleks04 [339]3 years ago

4 0

Answer:

Early settlement Discount: It is offered to customer to encourage them to pay earlier than the payment date.

Bulk Discount: If the customer buys over a certain quantity, he will get a discount.

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perline, inc., has balance sheet equity of $6.2 million.At the same time, the income statement shows net income of $948600. The

ikadub [295]

Answer:

The target stock price in one year is $264.75

Explanation:

We first calculate the ROE as below

ROE= Earnings / Book value of Equity

ROE= $948,600 / $6,200,000

ROE= 0.153

The payout ratio is:

b= Dividend / Net income

b = $493,272 / $948,600

b = 0.52

So the sustainable growth rate is:

g = ROE * (1-b)

g = 0.153 * (1-0.52)

g = 0.153 * 0.48

g = 0.07344

The earning in the first year are

EPS1 = $948,600 / 100,000 * (1 + 0.07344)

EPS1 = $9.486 * 1.07344

EPS1 = $10.1827

According to the benchmark PE ratio, the target stock price in one year is

Price = EPS1 * 26

Price = $10.1827 * 26

Price = $264.75

5 0

3 years ago

An electronics firm produces 45,000 calculators annually, and each calculator requires 2 nickel-cadmium batteries (so they use 9

Mila [183]

Answer:

$0.05

$18,600

30,000 units

Explanation:

Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.

As per given data

Annual Demand = 90,000 batteries

Ordering cost = $250

Carrying cost = $0.046

Annual Holding cost = Holding cost per unit x Annual Demand = $0.046 x 90,000 batteries = $4,140

Opportunity cost = $0.046 X 110% = $0.05

Purchase cost = 90,000 x $0.14 = $12,600

Ordering cost = (90,000/15,000) x $250 = $1,500

Storage cost = $0.05 x 90,000 = $4,500

Total cost of Inventory = $12,600 + $1,500 + $4,500 = $18,600

EOQ = $\sqrt{\frac{2 X S X D}{H} }$

EOQ = $\sqrt{\frac{2 X 250 X 90000}{0.05} }$

EOQ = 30,000

8 0

3 years ago

The bank received and accepted a payment worth $7,200 from a customer on the company’s behalf. Which journal entry adjustment sh

Oliga [24]

Answer:

A. Accounts receivable will be debited by $7,200.

Explanation:

Accounts receivable is the payments that customers owe to a business. It arises when a business sells goods to customers of credit. Accounts receivables are current assets as they represent money that the business expects to receive in the short term.

Recording the transaction for accounts receivable follows the principle for recording assets transactions. An increase in assets is debited. The accountant will debit accounts receivable by an amount of $7200.

7 0

3 years ago

Read 2 more answers

On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the comp

Radda [10]

Answer:46795

Explanation:

7 0

3 years ago

What is the area of a triangle base 20ft and the hight of 14ft

kakasveta [241]

The Area Of The Triangle Is