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3 years ago

A partial list of Waterways' accounts and their balances for the month of November 2016 follows:

Business

1 answer:

lesya [120]3 years ago

4 0

Answer:

Total current assets = $697,750

Explanation:

The partial balance sheet is as follows:

Waterways Corporation

Balance Sheet (Partial)

For the month of November 2016

<u>Details $ $ </u>

<u>Current Assets</u>

Cash 260,000

Accounts Receivable 275,000

Finished Goods Inventory, November 68,800

Raw Materials Inventory, November 52,700

Prepaid Expenses <u> 41,250 </u>

Total current assets 697,750

Note:

Cash is the most liquid of assets.

Accounts receivable which should be collected within 30 to 60 days are less liquid than cash, but more liquid than inventory.

Finished Goods Inventory which is expected to be sold and converted to cash within one year, and Raw Materials Inventory which is expected to be converted to finished good within one year are more liquid than Prepaid expense.

Therefore, the least liquid among current assets’ item above is the Prepaid Expense as it is cash paid for services not yet received..

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For a new product to be profitable, it must Multiple Choice enable customers to obtain greater total utility from their money in

Sidana [21]

Answer:

have greater marginal utility than existing substitute products

Explanation:

Utility is the satisfaction derived from consuming a good or service. Products or services that meet or exceed customers' expectations are deemed to have a high utility value. Goods that do not adequately address customers' needs are considered to be of low utility value.

Goods and services deemed to be of high utility value are always in high demand. Consumers will be willing to pay more for such commodities. A product with high utility value will outsell its competitors in the market.

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3 years ago

Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will ad

Paul [167]

Answer:

the answer for the first question is $166667.

the answer for the second question is $210526

the answer for the third question is An inverse.

Explanation:

given information that i will invest in a $10000 scholarship that will pay forever.

the interest rate charged is 6.00% per annum therefore this is a perpetuity present value problem where there is streams of income forever therefore we use the formula :

Pv of perpetuity= Cf/r

where Cr is the cash flows payed by the single investment forever in this case $10000 then r is the interest rate of the investment amount which is 6% in this case.

Pv of Perpetuity= $10000/6%

=$166667 therefore i must invest this amount to get the scholarship running with streams of $10000 forever.

in the second problem if now the interest rate is changed from 6% to 4.75% then the amount to be invested would be :

Pv of perpetuity = $10000/4.75%

=$210526 therefore this is the amount to be invested for a forever $10000 stream of incomes for a scholarship.

the relationship is indirect cause as the interest rate decreases the present value of the perpetuity that must be invested increases.

3 0

3 years ago

Which of these investments may pay dividends?

Murrr4er [49]

Since you provide no options, Stock investment may pay dividend

The amount of dividend will be depended on how many stocks you own and how much is that's company net income in that year

for example, if you own 10 % of the company, and the company announced that they will pay $ 10,000 as dividend this year, you will get dividend payment of $ 1,000

5 0

3 years ago

Read 2 more answers

A capital investment project has the following expected incremental values next year: Revenue $1,000,000 Operating costs 200,000

sattari [20]

Based on the calculation below, incremental after-tax operating cash flow is $675,000

<h3>How to calculate incremental after-tax operating cash flow</h3>

This can be calculated as follows:

Profit before interest and tax = Revenue - Operating costs – Depreciation = $1,000,000 - $200,000 - $300,000 = $500,000

Operating income = Profit before tax – (Profit before tax * Tax rate) = $500,000 – ($500,000 * 25%) = $375,000

Therefore, we have:

Incremental after-tax operating cash flow = Operating income + Depreciation = $375,000 + $300,000 = $675,000

Learn more about cash flows here: brainly.com/question/18301011.

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5 0

2 years ago

The cost for a carton of milk is $3, and it is sold for $5. When the milk expires, it is thrown out. You also know that the mean

svetlana [45]

Answer:

a) $3

b) $2

c) 1449

Explanation:

Given:

The cost for a carton of milk = $3

Selling price for a carton of milk = $5

Salvage value = $0 [since When the milk expires, it is thrown out ]3

Mean of historical monthly demand = 1,500

Standard deviation = 200

Now,

a) cost of overstocking = Cost for a carton of milk - Salvage value

= $3 - $0

= $3

cost of under-stocking = Selling price - cost for a carton of milk

= $5 - $3

= $2

b) critical ratio = $\frac{\textup{cost of under-stocking }}{\textup{cost of overstocking + cost of under-stocking }}$

critical ratio = $\frac{\textup{2}}{\textup{3 + 2}}$

critical ratio = 0.4

c) optimal quantity of milk cartons = Mean + ( z × standard deviation )

here, z is the z-score for the critical ration of 0.4

we know

z-score(0.4) = -0.253

thus,

optimal quantity of milk cartons = 1,500 + ( -0.253 × 200 )

= 1500 - 50.6

= 1449.4 ≈ 1449 units

4 0

3 years ago