Alison's business idea of coffee shop in a small city with coffee beans that are fair trade certified, shade grown, and organic is best described with the following degree of competition : Monopolistic competition. (B). The coffee shop will <span>sell products that are differentiated from the product of other coffee shops (because of the special coffee beans). Which means there won't be perfect substitutes. This makes the competition monopolistic. </span>
Answer: Corporate bond
Explanation:
It should be noted that the municipal bond aren't taxable. Therefore, its yield will be 4.75%.
On the other hand, the After Tax Cost of the yield of the corporate bond will be:
= Yield × (1-Tax Rate)
= 8.25% × (1-35%)
= 8.25% × 65%
= 5.36%
Therefore, the Corporate Bond should be chosen since it has a higher yield.
Answer:
journal entries
Write-off
Debit Bad Debts expense $11,000 Credit Accounts receivable $11,000
Recovery
Debit Bank $1,800 Credit Bad Debt Recovered income $1,800
Allowance for Doubtful debt Adjustment
Debit Allowance for doubtful debt Adjustment $4,000 Credit Allowance for doubtful debt $4,000
Explanation:
Write-off
The write-off creates an expense (bad debt) and and decreases an asset ( Accounts receivable)
Recovery
Since the amount has been written off as bad, when it is recovered it is no longer recognized as a payment on accounts receivable but an income the entity thought was lost.
Allowance for doubtful debt adjustment
The differences in the opening balance and closing balance either creates an expense or an income adjustment. These estimates are on net Accounts receivables ( after bad debts) are a negative assets.
19000 - 15000 = 4000(increase) adjustment and is an expense.
Answer:
b. $68.65 per direct labor hour
Explanation:
Allocating based on direct labor hours, divide the total budgeted overhead cost with the actual labor cost.
$460,000/6700 hours
$68.65/hour
Answer:
expected return is 18%
volatility of the portfolio 13.23
%
Explanation:
Your Investment: $ 10,000
Invest $ 20,000 in Google, Google's expected return is 15 %
Sell $ 10,000 worth of Yahoo! Yahoo! Yahoo!'s expected return is 12 %
=> The weight of your portfolio is 2 for the Google stock, and -1 for the Yahoo stock. The negative sign for the Yahoo stock indicates a short position in the stock. The expected return is the weighted average of the returns on the two stocks:
- 2 * 15% + (-1) * 12% = 18%
The volatility of the portfolio is:
= 13.23
%
