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Aleksandr-060686 [28]
3 years ago
13

Finerly Corporation sells cosmetics through a network of independent distributors. Finerly shipped cosmetics to its distributors

and is considering whether it should record $300,000 of revenue upon shipment of a new line of cosmetics. Finerly expects the distributors to be able to sell the cosmetics, but is uncertain because it has little experience with selling cosmetics of this type. Finerly is committed to accepting the cosmetics back from the distributors if the cosmetics are not sold. How much revenue should Finerly recognize upon delivery to its distributors?
Business
1 answer:
Vaselesa [24]3 years ago
7 0

Answer: $0

Explanation:

When there is an expectation of reversal of the goods back to the company due to factors arising from a delay in the delivery of the goods or other factors that could not be controlled, the revenue recognized should be $0.

In this scenario, Finerly is uncertain about the ability of the goods to be sold by the distributors and is committed to accepting the cosmetics should they not sell.

As they have little experience which means that they will be unable to control much unforeseen factors, there is an expectation of reversal so revenue should be recognized at $0 on delivery. Revenue will only be recognized after sales.

You might be interested in
Last year, Linus earned a salary of $25,000 and he spent $24,000, thus saving $1000. At the end of the year, he received a bonus
Evgen [1.6K]

Answer:

0.5

Explanation:

Marginal propensity to consume is the proportion of the increase in disposable income spent on consumption.

Marginal propensity to consume = change in consumption/ increase in disposable income

$500 / $1000 = 0.5

I hope my answer helps you

8 0
4 years ago
Extreme Adventurer, an outdoor nature magazine, marketed to potential customers who recently purchased camping equipment and fou
MrRa [10]

Answer:

potential customers who recently purchased camping equipment and four-wheel drive trucks.

Explanation:

  • The call to action has a huge potential hidden in reaching out to the customers and making them call for outdoor nature and adventure.
  • The magazine tries to catch the reader's attention by making claims such as tired of sitting in front of your computer.  
  • Those people who usually stay at home and are unable to move out due to some reason can use their purchased camping equipment and four-wheel-drive trucks.
7 0
3 years ago
ABC Corporation is considering the purchase of a machine that would cost $110,000 and would last for 4 years. At the end of 4 ye
Ahat [919]

Answer:

-$8,705

Explanation:

The computation of the Net present value is shown below

= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment

where,

The Initial investment is $110,000

All yearly cash flows would be

= Annual cost savings × PVIFA for 4 years at 12%

= $30,000 × 3.0373

= $91,119

Refer to the PVIFA table

And, the salvage value would be

= Salvage value × pvif for 4 years at 12%

= $16,000 × 0.636

= $10,176

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

Now put these values to the above formula  

So, the value would equal to

= $91,119 + $10,176 - $110,000

= -$8,705

5 0
3 years ago
Consider the following scenario:Suppose that Sharon has just finished smoking a cigarette and is thinking about throwing the cig
BlackZzzverrR [31]

Answer:

Moral codes and social sanctions

Explanation:

Externality is when the actions of a producer or consumer have an effect on third parties not involved in production or consumption.

Externality can be positive or negative.

Postive externality is when the benefits of economic activities to third parties exceeds the costs.

Negative externality is when the costs of economic activities to third parties exceeds the benefits.

Smoking and littering the environment with cigeratte butts is an example of an activity that generates negative externality.

Sharon's morals and sense of judgement cautioned her against littering with her cigarette butts because she knows such activity is frowned against by the society. So, in this case she is guided by her moral codes.

This is one of the solutions to externality.

Other solutions include:

Taxation

Integration of different types of businesses through merger or acquisition

Contracts

Charities

I hope my answer helps you

3 0
3 years ago
Has Anna's fasfa been selected for verification? In your own words, describe what the process of verification is.
wariber [46]

Answer: The process of verification is used by schools to confirm that data submitted on the FAFSA form is correct

Explanation:

The process of verification is used by schools to confirm that data submitted on the FAFSA form is correct. When you request the verification, the school would request additional documents to support the information you supplied, this is for clarification and ensuring you are the right person or you own the information.

5 0
3 years ago
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