Which of the following is a tertiary ratio that drives protability?

Blue Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $156,000 to manuf

Sauron [17]

Answer:

See the journal entries below.

Lease receivable = $235,757.58

Explanation:

Before the journal entries are prepared, the present value of the annual rentals or lease receivable is first calculated using the formula for calculating the present value of an ordinary annuity due since the annual rentals is payable each December 31, beginning December 31, 2019 as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) …………………………………. (1)

Where;

PV = Present value annual rentals or lease receivable = ?

P = Annual rentals = $52,800

r = Interest rate = 6%, or 0.06

n = number of years the lease agreement covered = 5

Substitute the values into equation (1), we have:

PV = $52,800 * ((1 - (1 / (1 + 0.06))^5) / 0.06) * (1 + 0.06)

PV = $235,757.58

The journal entries will now look as follows:

Date Account Tittle Debit ($) Credit ($)

31-Dec-19 Lease Receivable 235,757.58

Cost of Goods Sold 156,000.00

Sales Revenue 235,757.58

Inventory 156,000.00

(To record the lease.)

31-Dec-19 Cash 52,800.00

Lease Receivable 52,800.00

(To record the receipt of lease payment.)

7 0

3 years ago

Bonnie is writing a cover letter for a job application.She has written the introduction describing her strengths.However,she is

murzikaleks [220]

In the body of her letter I think she should start talking about her past experience with jobs and her experience with whatever jobs she's worked for before,

7 0

4 years ago

Given the following information, determine the amount of cash on the balance sheet, assuming that the company has only three ass

Ad libitum [116K]

Answer:

Cash balance = $5850

Explanation:

Below is the given values and calculations:

Liabilities = $3350

Equity = $28000

Supplies = 2000

Land = $23500

Cash on the balance sheet can be determined by subtracting the sum of supplies and land from the sum of liability and equity.

Cash balance = (28000 + 3350) - (2000 + 23500)

Cash balance = $5850

6 0

3 years ago

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of econom

Firdavs [7]

Answer:

Letter c is correct. Recession.

Explanation:

A recession corresponds to a contraction in the economy over a period of time, there is a drop in production and consumption, rising unemployment, falling profitability, falling family income and others. It can be measured by levels of productivity, employment, consumption and other variables.

However, when there is a recession in a country, it is normal for spending to be cut, including a reduction in the marketing budget, because the period is not favorable for consumption, so companies cut spending in various areas because there is a risk of falling revenues.

Although recession marketing is common, studies show that companies that maintain or increase advertising ensure increased sales and participation during and after the recession. This can occur for a variety of reasons, as brands can provide consumers with an image of stability in the midst of crisis, which improves brand reliability. There is also a decrease in advertising costs, and the possibility of the company winning market, because it is important that the company has an active voice in making ads regardless of the economic situation.

3 0

3 years ago

Held-to-maturity securities are equity securities a company intends and is able to hold until maturity true or false

nataly862011 [7]

Answer:

The answer is true

Explanation:

Held to maturity securities are securities that are bought to be held until they matures. It is being classified as non-current asset or long term investment. Example of Held-to-maturity security is a bond.

They are being reported on the balance sheet at an amortized cost(original cost - accumulated amortization). Held-to-maturity with less than a year are regarded as Curren asset while the ones above a year are regarded as non-current.

3 0

3 years ago