Answer:
The appropriate approach is "Principal-agent problems".
Explanation:
- A contradiction of objectives or priority between someone individual or organization as well as the authorized accompanying documents to operate over its behalf is considered as Principal-agent problem.
- The possession of a commodity or fundamental assigns immediate supervision of that resource to some other agency may transpire in whatsoever circumstance.
Answer:
Cost of retained earnings = 0.13
Explanation:
given data
(D1) = $1.80
current price = $36
growth rate = 9 percent
solution
we get here Cost of retained earnings (Ke) that is express as
Cost of retained earnings = ( D1 ÷ P ) + g ................1
here P is price and g is growth rate
put here value and we get
Cost of retained earnings = (1.80 ÷ 36 ) + 0.08
Cost of retained earnings = 0.13
Increasing ,increasing
the reason is that when the economy is
growing more money is flowing ,unemployment is decreasing so more goods
and services are produced ,as a result of low unemployment ,more
consumption and total output increasing total income is increasing
Answer: $4,811
Explanation:
Assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible that would be,
= 6% * 98,700
= $5,922
The Allowance for Doubtful Accounts acts as a buffer for the business when bad debts are incurred.
Bad debts are taken from the Allowance as the Allowance has already been removed from the Receivables.
In cases where Bad debts exceed the buffer in the Allowance for Doubtful Debt Account we take everything in it and the remaining bad debt amount is debited to Bad Debt expense.
That would be,
= 5,922 - 1,111
= $4,811
$4,811 is the amount that should be debited to Bad Debts Expense.
Answer:
Ending inventory = 64 units
Explanation:
Given:
Ending inventory for period 7 = 89 units
Forecast demand for period 7 = 120 units
Forecast demand for period 8 = 20 units
Customer order for period 8 = 25 units
MPS = 0 units
Computation:
Ending inventory = Ending inventory for last period + MPS - maximum from (Forecast demand for Current period ,Customer order for current period)
Ending inventory = 89 units + 0 - maximum from (20 , 25)
Ending inventory = 89 units -25 units
Ending inventory = 64 units