Answer:
$106 million
Explanation:
allowance for doubtful accounts
debit credit
beg. balance 426
bad debt 85
ending balance <u>405 </u>
106
Since you need $106 million to balance the account, that should be the amount of bad debt written off during the current year. Allowance for doubtful accounts is a contra asset account, any debit balance increases accounts receivable while a credit balance decreases it.
Answer:
False
Explanation:
In a command or planned economy, the factors of production are owned and controlled by the government. The government makes all the significant economic decisions such as production, distribution, and pricing.
The government prepares a central plan for the entire economy. The plan determines the production level, the goods and services to be produced, and their prices. The central government employs all workers. The private sector does not exist.
Answer: 26.73%
Explanation:
You can calculate the expected return using the Capital Asset Pricing Model (CAPM).
Formula is:
Expected return = Risk free rate + beta * (Market return - risk free rate)
Use the previous figures to solve for the risk free rate:
20.47% = Rf + 1.39 * (16.50% - Rf)
20.47% = Rf + 22.935% - 1.39R
20.47% - 22.935% = Rf - 1.39Rf
-2.465% = -0.39Rf
Rf = -2.465% / -0.39
= 6.32%
New expected return is:
= 6.32% + 1.39 * (21% - 6.32%)
= 26.73%
Answer:
18.24
Explanation:
Sustainable growth rate is the rate of growth a company can afford in the long term
sustainable growth rate = retention rate x ROE
b = retention rate. It is the portion of earnings that is not paid out as dividends
Retention rate = 1 - payout ratio =
payout ratio = dividend / net income
retention rate = 1 - $44,640 / 72,000 = 0.38
Return on equity = net income / average total equity
= 72,000 / 150,000 = 0.48
g = 0.48 x 0.38 = 18.24%
