Answer:
can return the bracelet and get her money back
Explanation:
Minors have a restriction on the products that they can. To purchase these products they must have consent of their parent or guardian.
An identity card is required to determine the age of the buyer to avoid wrong sales to minors.
Items prohibited from sale to minors include: alcohol, tobacco, petrol, offensive weapons, intoxicating substances, and expensive jewelry.
So in this scenario since due diligence was not carried out by the store to check Heather's age on purchase, she can return the diamond bracelet and get back her money.
This was an illegal sale.
Actual Profit (P) is equal to Actual Sales (S) minus Total
Expenses (E). Given that the Margin of Safety percentage (M) of Total Sales is 25%,
we can establish an equation relating the Total Sales, Break-even point and M.
It would be S - $300,000 = 0.25S, since Margin of Safety is equal to Total
Sales minus Break-even point. Solving for S would result to $400,000. Given
that E is equal to 45% of S, E would then be equal to $180,000. Solving for P,
P = $400,000 - $180,000. Therefore, P is equal to $220,000.
Answer:
False
Explanation:
The Boston Consulting Group’s Growth-Share Matrix is a business planning tool that evaluates the potential of brand portfolios and alternative strategies.
The BCG matrix framework classifies a brand portfolio into four categories based on industry attractiveness (industry growth rate) and competitive position (<u>product market share</u>).
The four categories are:
- question marks
- stars
- poor dogs
- cash cows
Answer:
Stock Y is undervalued because the reward-to-risk ratio for Stock Y is higher than the SML
Stock Z is overvalued because the reward-to-risk ratio for Stock Z is lower than the SML
Explanation:
From the question,
It is given:
FOR STOCK Y
Stock expected return = 14.7%
Stock beta = 1.4
risk-free rate is 5.2%
The Reward-to-risk ratio is given by the difference between the stock expected return and risk free rate divided by the stock beta.
Therefore
Reward-to-risk ratio for stock Y = (14.7% - 5.2%)/1.4
= 6.79%
FOR STOCK Z
Stock expected return = 8.7%
Stock beta = 0.7
risk-free rate is 5.2%
Therefore
Reward-to-risk ratio for stock Z = (8.7% - 5.2%)/0.7
= 5%
FOR SML
market risk premium = 6.2%
Risk rate = 5.2
Therefore
Reward-to-risk ratio for SML = (6.2%)/6.2 - 5.2
= 6.20%
Stock Y is undervalued because the reward-to-risk ratio for Stock Y is higher than the SML
Stock Z is overvalued because the reward-to-risk ratio for Stock Z is lower than the SML
Answer:
Accrued Interest - $5,333.33
Explanation:
At the end of the year, due to the matching principle, expenses of the same period need to be matched with that period and 'expensed' in the same year.
In the scenario above there has been 4 months out of 9 used in the current year, hence as at December 31st. 4 months interest will be included in the current year and 5 months interest will be attributable to the following future.
4 months / 9 months * 6% * 200,000 = $5333.33
In consonance with the <em>accrual basis of accounting</em>, the amount of accrued interest that will be recorded with adjusting entries will be:
Dr Interest expense - 5,333.33
Cr Accrued Interest - 5,333.33
