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My name is Ann [436]
3 years ago
6

Candle Stix estimates that 2% of the $100,000 balance in accounts receivable is uncollectible. Prior to year-end adjusting entri

es, there is a $400 debit balance in allowance for doubtful accounts. What is the net realizable value of accounts receivable
Business
1 answer:
Mnenie [13.5K]3 years ago
8 0

Answer:

$97,600

Explanation:

First, we need to get the value for uncollectible in accounts receivable

= 2% Multiplied by balance in accounts receivable as uncollectible

= 2% × 100,000

= $2,000

We will then subtract the balance above which is the uncollectible from the accounts receivable

= $100,000 - $2,000

= $98,000

The net realizable value would the be ;

= $98,000 - $400

= $97,600

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Valley Technology had Net Income for 2021 of $9,600,000. The firm invested $5,000,000 in manufacturing equipment during 2020 but
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If Valley Technology had Net Income for 2021 of $9,600,000. The Net Cash Flow in 2021 is:$5,600,000.

<h3>Net cash flow</h3><h3>Cash Flow from Operating Activities</h3>

Valley Technology Statement of Cash Flows For the year ended 2021

Cash Flow from Operating Activities:  

Net Income $9,600,000

Add Depreciation Expense $1,000,000

($5,000,000/5)

Net Cash provided (used) by operating activities:  $10,600,000

Cash Flow from Investing Activities:  

Purchase of manufacturing equipment -$5,000,000  

Net Cash provided (used) in Investing activities -$5,000,000

Cash Flow from Financing Activities:$0

Net cash flow in 2021 $5,600,000

Therefore  If Valley Technology had Net Income for 2021 of $9,600,000. The Net Cash Flow in 2021 is:$5,600,000

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3 0
2 years ago
What is the preferable presentation of accounts receivable from officers, employees, or affiliated companies on a balance sheet?
kiruha [24]

Answer:

As assets but separately from other receivables.

Explanation:

When a company lends money to its employees, managers or affiliated companies, or sells goods or services to them, it must report those accounts or notes receivables in a separate account than normal transactions carried out with external customers. This happens because the transactions must be verifiable to check if they were legal and followed the proper procedures, and at what price or interest rate were they carried out. E.g. a corporation that lens $10 million to its CEO at 1% interest rate is not doing things properly and that transaction should be reversed and proper interest rates must be charged.  

5 0
3 years ago
Eva received $55,000 in compensation payments from JAZZ Corp. during 2018. Eva incurred $7,000 in business expenses relating to
larisa [96]

Answer:

A. $4200

B. $7,599.20

C. $6,782

D. $3,113

Explanation:see attached file

3 0
3 years ago
A buy class situation affects buying center tendencies in different ways. If there are many people involved, the problem definit
zlopas [31]

Answer:

E. New buy.

Explanation:

A new buy is a circumstance requiring the acquisition of an item for the absolute first time.

7 0
3 years ago
A company has a debt-to-capitalization ratio of 31.8%. Its pre-tax cost of debt is 7.4%. It has an unlevered beta of 1.05, a lev
SIZIF [17.4K]

The company's WACC will be 10.87% which is option A.

<h3><u>What is WACC and how is it calculated?</u></h3>

WACC stands for Weighted average cost of capital.

WACC is calculated by multiplying the cost of each capital source (debt and equity) by its relevant weight by market value, and then adding the products together to determine the total. The cost of equity can be found using the capital asset pricing model (CAPM).

A company's debt-to-capital ratio or D/C ratio is the ratio of its total debt to its total capital, its debt and equity combined. The ratio measures a company's capital structure,

Formula For Calculation of WACC :-

WACC Formula = (E/V * Ke) + (D/V) * Kd * (1 – Tax rate)

E = Market Value of Equity.

V = Total market value of equity & debt.

Ke = Cost of Equity.

D = Market Value of Debt.

Kd = Cost of Debt.

Tax Rate = Corporate Tax Rate.

To know more about Weighted average cost of capital, click the given links.

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Correct Question - A company has a debt-to-capitalization ratio of 31.8%. Its pre-tax cost of debt is 7.4%. It has an unlevered beta of 1.05, a levered beta of 1.37 and a marginal tax rate of 35%. The risk free rate is 5.2% and the market risk premium is 6.2%. What is the company's WACC?

A) 10.87%

B) 13.70%

C) 11.69%

D) 9.55%

8 0
1 year ago
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