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Elan Coil [88]
3 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]3 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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a call option on Jupiter Motors stock with an exercise price of $75 and one-year expiration is selling at $4. A put option on Ju
bogdanovich [222]

Answer:

$75.01

Explanation:

Given:

  • Call price (C): $4
  • Put price (P): $2.5
  • risk-free rate (r): 2% = 0.02
  • Time: 1 year
  • Exercise price (K): $75

Let Share price: S_{0}

As per put-call party, we have the following equation:

  • C + Ke^{-rt} = P+S_{0}

<=> S_{0}  = C + Ke^{-rt} - P

<=> S_{0}  = 4 +  75*e^{-0.02*1} - 2.5

<=> S_{0}  = 1.5 + 73.51 = $75.01

So the the stock price is $75.01

6 0
4 years ago
Both the payments to debt-holders (lenders) and equity-holders (shareholders) are liabilities of the firm and both kinds of inve
bulgar [2K]
False I just know it lol trying to make this answer long
4 0
3 years ago
Read 2 more answers
Madison Corporation sells three products (M, N, and O) in the following sales mix: 3:1:2. Unit price and cost data are: M N O Un
damaskus [11]

Answer:

Products    Selling price   Unit variable cost   Contribution per unit

                        $                           $                             $

M                      7                           3                             4

N                       6                          2                             4

O                       6                          3                             3

                        19                          8                            11

Break-even point in composite units

= <u>Total fixed cost</u>

  Contribution per unit

= <u>$340,000</u>

         $11

= 30,909 units

Break-even point for the current sales mix

M    3/6 x 30,909 units = 15,455 units

N     1/6 x 30,909 units = 5,151 units

O     2/6 x 30,909 units = 10,303 units

Explanation:

In this case, we need to calculate contribution per unit of each product by deducting the unit variable cost of each product from their respective selling prices. Then, we will obtain the break-even point in composite units by dividing the total fixed cost by overall contribution per unit.

Then, we will determine the break-even point for the current sales mix by multiplying the proportion of each product in the sales mix by the break-even point in composite units.

8 0
4 years ago
Supermarkets collect information about individual customers through their use of loyalty cards, and then analyze the data to loo
son4ous [18]
I think it is <span>data mining.</span>
4 0
3 years ago
Anybody can help with this too ??
mr Goodwill [35]

Answer:

1. The three types of business mentioned are – Manufacturing, Retail store and School

2. She means that whenever there  is loss both Ashley’s father and aunt get tensed.  

3. They sell their product on sale to increase the revenue

4. Sale is better than having no sale at all as it caters the immediate financial requirement without ant further invetsment

Explanation:

1. The three types of business mentioned are – Manufacturing, Retail store and School

2. She means that whenever there  is loss both Ashley’s father and aunt get tensed.  

3. They sell their product on sale to increase the revenue

4. Sale is better than having no sale at all as it caters the immediate financial requirement without ant further invetsment

3 0
3 years ago
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