When choosing which foreign country to enter, a country will be less appealing when?

Merchandise inventory is found on the balance sheet as a a. current asset. b. long-term asset. c. long-term liability. d. curren

scoray [572]

Answer:

a. current asset

Explanation:

The merchandise inventory are the goods the business sales as their main operation. They are expected to be ready to sale therefore, ready to be converted to cash within the period, therefore will be current assets.

Unless the company do an specific mention and a certain amount of goods that will expected to be sold in a period of time greater than a year, all merchandise inventory will be current. These specific units will be considered non-current as their are expecteed to be converted to cash i na period greater than 1 year.

7 0

3 years ago

On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Erikson Co

Lera25 [3.4K]

Answer:

Interest expense $80

Explanation:

the journal entry to record the issuance of the note:

December 1, 202x, note issued in replacement of account payable

Dr Accounts payable 24,000

Cr Notes payable 24,000

the journal entry to record accrued interests payable is:

December 31, 202x, accrued interests payable

Dr Interest expense 80

Cr Interests payable 80

Interest expense = $24,000 x 4% x 1/12 = $80

8 0

3 years ago

What is the present value of 10 equal payments of $22,500 to be made at the end of each year for the next 10 years? The annual i

Vanyuwa [196]

Answer:

a.

We use the formula for calculating present value of annuity to solve the question as followed:

(22,500/10%) x [ 1 - 1.1^(-10) ] = $138,253.

b.

The present value of the total severance package is calculated as:

120,000 cash paid at the beginning + Present value of $131,000 paid in one year time + Present value of 7 annuities paid at the end of each year starting from the end of this year = 120,000 + 131,000/1.06 + [ 29,500/6% x (1 - 1.06^(-7)) ] = $408,265.

c.

Option 1: to collect lump sum of $107,000 today will give present value of $107,00

Option 2: to collect seven equal $20,500 at the end of each year will give present value as calculated below by applying the present value formula for annuity:

(20,500/8%) x ( 1 - 1.08^-(7)] = $106,731.

d.

The present value of this investment is equal to:

Present value of the annuity made of 8 equal payments at the end of each year, $15,000 each + Present value of $150,000 receipt paid in 8 year time = (15,000/7%) x [1 - 1.07^(-8) ] + 150,000/1.07^(-8) = $176,871.

Explanation:

8 0

4 years ago

Other things held constant, the higher a firm's total debt to total capital ratio [measured as (Short-term debt Long-term debt)/

JulsSmile [24]

Answer:

False

Explanation:

The reason is gearing ratio gives the percentage of debt of the total capital structure. It means that if the gearing ratio is increasing then the debt is increasing and if the debt is increasing then the interest expense is increasing.

The TIE formula is given in the attachment.

And if the interest expense is has increased due to higher gearing ratio then the TIE will decrease because of the increase in the denominator (Interest Expense).

6 0

4 years ago

Highlight four reasons why a person may start a business<br>i).....

Bezzdna [24]

Answer:

To create job opportunities

To earn or make profit

To new skill upskill

To demonstrate the value of entrepreneurs

Explanation:

4 0

3 years ago