Answer:
a. From a political perspective, Ricoh should be aware of regulations from ITAC (Information Technology Association of Canada) who is actively promoting and supporting the expansion of the IT services industry in Canada as this move will likely impact Ricoh in many ways. - Yes
b. From an economic perspective, Canada enjoys a strong economy with a strong GDP growth. - Yes
c. Low oil prices are causing turmoil in business investment in western Canada, leading to a negative impact for the economic component of the macro-environment. - Yes
d. A weak Canadian dollar makes the cost of importing more expensive. - No
Explanation:
- The macroeconomic conditions that impact the business in terms of the economic growth rate. The use of GNP and GDP to measure the growth. The macroeconomic phenomenon estates the patterns and conditions from the large aspects of the economy.
The opening balance are being added when creating a new
quick books data file for the existing company when there is a presence of
having chart of accounts that are provided to be customized that made opening
balances to be added.
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Answer:
The journal entries are made below;
Explanation:
May 1. Account Receivable-Beijing Palace Co. Dr.$18,900
Sales Revenue Cr.$18,900
Cost of Goods Sold Dr.$11,200
Inventory Stock Cr.$11,200
Aug 30. Cash Dr.$8,000
Bad Debt Expense Dr.$10,900
A/R-Beijing Palace Co. Cr.$18,900
Dec 8. A/R Beijing Palace Dr.$10,900
Bad Debt Expense Cr.$10,900
Cash Dr.$10,900
A/R Beijing Palace Co. Cr.$10,900
Answer:
1. $12.31
2. -11.96%
Explanation:
a) Calculation to determine the intrinsic value of a share of Xyrong stock
First step is to calculate the Required Return
Using this formula
Required Return = Risk-free Rate + [Beta * (Expected Market Return - Risk-free Rate)]
Let plug in the formula
Required Return= 5.5% + [2.7 * (17% - 5.5%)]
Required Return= 5.5% + 31.05% = 36.55%
Second step is to calculate g using this formula
g = ROE * (1 - Payout Ratio)
Let plug in the formula
g= 18% * (1 - 0.25)
g= 13.5%
D0 = EPS0 * Payout Ratio = $10 * 0.25 = $2.50
P0 = [D0 * (1 + g)] / [r - g]
= [$2.50 * (1 + 0.135)] / [0.3655 - 0.135]
= $2.8375 / 0.2305 = $12.31
b). Holding Period Return = [P1 + D1 - P0] / P0
= [$8 + $2.8375 - $12.31] / $12.31 = -$1.4727 / $12.31 = -0.1196, or -11.96%
