Answer:
Bad debt expense for 2021 as a percent of net credit sales is $79,900
Explanation:
The computation of the bad debt expense is shown below:
= Net credit sales × estimated bad debt percentage
= $4,700,000 × 1.70%
= $79,900
All other information which is given in the question are not related to the bad debt expense as it is an estimated bad debt percentage of the net credit sales Hence, we ignored it
Answer:
A. Private corporation.
Explanation:
Private corporation: It is type of business corporation which is privately owned by individual or company or group of small invenstor and the motive these company is to earn profit. The stocks of these companies are not freely traded in the open market, however, ownership of these company remain with few individuals, who might be closelt related or family member. The operation of these company will remain same as a regular corporation.
In the given case, Hardware store was privetly owned by Russell´s family and they don´t hire manager from outside, neither they sell it to any outsider. Therefore, this business is an private corporations.
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Answer:
a) $8
b) $4
c) Decrease
Explanation:
Background.
A call option as you probably know, is an agreement to buy an asset on or before a particular day at a price already determined in the agreement.
a) the Intrinsic value of the option is the market price minus the strike price.
Intrinsic Value = Market Price - Strike price
= $43 - $35
= $8 per share.
It is worthy of note that for an option, of the intrinsic value dips into negative figures it is just said to be 0.
b) To calculate the time value, we subtract the intrinsic value from the call premium
= Call Premium - Intrinsic value
= $12 - $8
= $4
c) The call option has 6 months to maturity and the dividends are to come in 3 months. Share prices usually drop after a dividend has been paid so because the call option matures in 6 months, the price of the call option will DECREASE owing to the Expected drop in stock price.
Answer:
6.4%
Explanation:
money invest = $1.50 or 1£
interest earned = 1£ x 5% = 0.05£
total returns = 1.05£
now we convert them back to dollars = 1.05£ x $1.52/£ = $1.596
effective yield = (total return - initial investment) / initial investment = ($1.596 - $1.50) / $1.50 = 6.4%