Answer:
a. 480
Explanation:
The computation of the economic order quantity is given below:
= 480 units
The carrying cost could be determined below:
= $4 × 25%
= $1
hence, the carrying cost is $1
Therefore the economic order quantity is 480
Thus, the correct option is a.
Answer:
Debit Advertising expense $916.67
Credit Prepaid Advertising $916.67
Being entries to recognize advertising expense incurred for 5 months.
Explanation:
When an amount is paid in advance, the entries posted are
Debit Prepaid Advertising
Credit Cash account (with the amount prepaid)
As the expense is incurred, entries required would be
Debit Advertising expense
Credit Prepaid Advertising (with the amount incurred)
Expense incurred in 5 months
= 5/6 × $1100
= $916.67
Hence the entries required will be
Debit Advertising expense $916.67
Credit Prepaid Advertising $916.67
Being entries to recognize advertising expense incurred for 5 months.
Answer:
Ease potential conflicts between bondholders and shareholders
Explanation:
The securities that are converted is known as the convertible securities. like from preferred stock to common stock or vice versa
So here in the given situation, the conversion securities have a conflict between the bondholders and the shareholders that should be ease potential
not as an aggravate one
Therefore the same is to be considered
Answer:
4.71
Explanation:
Cash coverage is a financial tool to calculate the proportion of available cash to interest expenses. It is useful in that it gives a deeper insight into available cash to offset interest expense and guide towards proper investment of cash.
<u>Workings</u>
Cash coverage ratio = cash + cash equivalent / interest expenses.
To arrive at the cash equivalent , depreciation is added back to the net income
Cash equivalent = 15,585+ 2,525 = 18,110
Interest expenses = 3,846
Cash coverage ratio = 18,110 / 3,846 = 4.71
This seems high and it is advisable that cash should be used for some short term investments to earn other profit
What exactly do you need to talk about… but hey i’m here lol
