Answer:
$68,475
Explanation:
Data provided
Sales in October = $249,000
Credit percentage = 55%
Following month percentage = 50%
The calculation of accounts receivable is shown below:-
Credit sales in October = $249,000 × 55%
= $136,950
Collection collected in October
= $136,950 × 50%
= $68,475
Therefore, for computing the collection collected in October we simply multiply the credit sales in October with following month percentage.
Answer:
The cost of preferred stock is 10.2%
Explanation:
The actual amount realized from issuing the preferred of $100 per share par value is the par value less cost of issuing and selling stock of $2 per share, in other words,$98($100-$2) was realized per share from the issuance.
Having known the net amount realized, the cost of preferred stock can be calculated as follows:
cost of preferred stock =return on preferred stock/net amount realized
return is 10% of $100(par value), i.e $10 per share
cost of preferred stock =$10/$98=10.2%
Note that preferred is not tax deductible like debt financing , hence the rate of tax given is not considered in determining the cost of preferred stock.
Answer:
below the break even point, the firm is losing money.
Explanation:
The break even point is the output level at which the firm's revenue equals its costs. Above this level, the firm is operating at a profit, below this level, the firm is operating at a loss.
The formula for calculating break even point in units produced is:
break even point in units = total fixed costs / contribution margin per unit
Explanation:
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.
Example Coca-Cola, Amazon etc.
