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Elan Coil [88]
2 years ago
8

Sage Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed

a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2020, at an agreed price of $367,600. At December 31, 2020, the raw material had declined in price to $334,840. What entry would you make on December 31, 2020, to recognize these facts
Business
1 answer:
maks197457 [2]2 years ago
7 0

Answer:

Dr Unrealized Holding $32,760

Cr Estimated Liabilities $32,760

Explanation:

Preparation of What entry would you make on December 31, 2020, to recognize these facts

Based on the information given the Joi entry you would make on December 31, 2020, to recognize these facts will be :

December 31, 2020

Dr Unrealized Holding $32,760

Cr Estimated Liabilities $32,760

($367,600-$334,840)

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With which two key issues is corporate-level strategy concerned?
Andrej [43]

Answer:

Option B What businesses a firm should be in and how the corporate office should manage its group of businesses

Explanation:

The reason is that corporate level strategy helps in managing the all of the business units of the company which means that the strategy is to maximize the gains arising by increasing the effectiveness and efficiency of the business operations of the business units. So the question certainly would include the decision of whether or not we should close a business unit or that we should continue with it. It would also question whether the group business is well managed or there are any other better alternatives as well.

4 0
3 years ago
Read 2 more answers
_____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk
Ne4ueva [31]
The answer would be Risk Enhancement

3 0
2 years ago
In a(n) _____ organization, top managers make all the decisions and pass them down to lower levels for implementation
Naya [18.7K]
Partly this statement is true however this does not implies to all.
In a big company, it;s really the top managers who do all the planning and decision making for the good of the company and then cascade it to the lower level for implementations
8 0
3 years ago
Prahm Corp. wants to raise $5.3 million via a rights offering. The company currently has 590,000 shares of common stock outstand
lawyer [7]

Answer:

Proceeds from sale of rights will be $49407.62

Explanation:

Proceeds from the sale of rights

=> Net Proceeds per share = Subscription price per share x (1 – Spread)

= $27 × (1 – 0.06)

= $25.38 per share

=> New shares offered = money raised/net proceeds per share              

                                       = 5300000/25.38 =  208826 Shares

=> Number of rights needed = current shares/New share offered    

                                               = 590000/208826 = 2.82532

=> The Ex-rights stock price will be

Ex-rights stock price = ((Number of rights needed × selling price per share) + Subscription price) + (Number of rights needed + 1)

= ((2.82532 × 54) + $27 per share) / (2.82532 + 1) = $46.94177 per share

So, the value of a right = Selling price per share - Ex-rights stock price

= $54 - $46.94177

= $7.05823 per share

Therefore, proceeds from selling the rights will be

= Number of shares × value of a right

= 7000 × 7.05823

= $49407.62

Proceeds from sale of rights will be $49407.62

5 0
3 years ago
If interest rate parity holds between the US and a foreign country, transaction costs are zero, and the forward rate is an unbia
Black_prince [1.1K]

Answer:

E) Equal to the foreign interest rate

Explanation:

In the case when the US company borrowed the foreign currency so here the interest rate is applied and considered to be the foreign interest rate. When it is borrowed on a covered basis, the foreign currency risk should be hedged and the interest rate should be equivalent to the foreign country

Therefore the last option is correct

6 0
3 years ago
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