Answer:$5400
Explanation:
In sales merchandise a seller can give a trade or a cash discount. A trade discount is giving based on the volume of sales, while a cash discount is giving to encourage prompt cash payment and it will be accorded the buyer once the conditions of payment is met.
The above scenario is a cash discount which means 2% cash discount will be giving if payment is made whithin 10 days and it should be made within 30 days. The amount of cash discount is there after deducted from the income statement as an expenses, though for the trade discount this is deducted directly to the sales journal.
Swift only return goods of $5400 and this is the amount to be recognized as purchase return.
6.8 will be the debt-to-EBITDA ratio.
EBITDA* 8.5=Transaction Value
(Transaction value * 0.8) / EBITDA = 6.8
EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in certain circumstances. However, EBITDA can be misleading because it does not reflect the cost of capital investments such as property, plant, and equipment.
This metric also excludes debt-related expenses by adding interest and tax costs to revenues. However, it is a more accurate measure of business performance as it is able to report profit before the effect of accounting and financial deductions.
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The option of saving money that offers the most liquidity is a piggy bank. (option C)
<h3>What is liquidity?</h3>
Liquidity can be described as the ease with which an asset can easily be converted to cash. Paper currency and coins is the most liquid assets. Real estate is illiquid because it takes a long time for a real estate asset (e.g a house) to be sold and proceeds converted to cash.
Liquid assets earn less returns when compared with assets that are less liquid. This is because illiquid assets earn an illiquidity premium. An illiquidity premium compensates holders for holding an illiquid asset.
Money in a piggy bank is already in cash or coins and there is no need to convert it to cash again. Also, money in a piggybank is more accessible than the other options.
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Answer:
The correct answer is: expressed in the prices of a base year.
Explanation:
Real GDP is an inflation-adjusted measure to calculate changes in economic output. It calculates the value of final goods and services produced in an economy in a year expressed in the prices of a base year.
Real GDP does not include changes in the price of products as it is calculated at constant prices.
Nominal GDP, on the other hand, is calculated on the basis of current prices. It includes changes in prices and is not inflation-adjusted. That is why real GDP is preferred over nominal GDP.
Answer:
(i) 1.57
(ii) 12.40%
(iii) $76,898.60
Explanation:
Debt-equity ratio = debt/equity
Hence debt= 0.57 equity
= (0.57 × 620000)
= $353,400
Total assets = debt + equity
= (353400+620000)
= $973400
1. Equity multiplier = Total assets ÷ Equity
= $973,400 ÷ 620,000
= 1.57
3. ROA = net income ÷ Total assets
net income = ($973,400 × 0.079)
= $76,898.60
2. ROE = net income ÷ Total equity
= $76,898.60 ÷ 620,000
= 12.40%(Approx).
