In general, the ____ risk you are willing to take the ____the possible return on your investments.

Nash's Trading Post, LLC has assets of $4200000, common stock of $1000000, and retained earnings of $600000. What are the credit

Anastasy [175]

Answer:

The correct answer is $2,600,000.

Explanation:

According to the scenario, the given data are as follows:

Total Assets = $4,200,000

Common stock = $1,000,000

Retained earnings = $600,000

So, we can calculate the creditors' claims on their assets by using following formula:

Creditor's Claim on their Assets = Total Assets - ( Common stock + Retained earnings)

= $4,200,000 - ( $1,000,000 + $600,000 )

= $4,200,000 - $1,600,000

= $2,600,000

Hence, Creditors' claims on their assets will be $2,600,000.

3 0

3 years ago

On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 4,000 units of Comfort Office Keyboard to one of its clients

Artist 52 [7]

Answer:

this contract includes 2 performance obligations

Explanation:

the performance obligations are as follows:

performance obligation 1 refers to providing 4,000 keyboards to Bionics
performance obligation 2 refers to the special discount options which could be redeemed by the client resulting in a material right. If the client had not made this purchase, then it wouldn't be entitled to the special discount.

A performance obligation is created whenever a business promises a customer that it will deliver or provide a good or service.

4 0

3 years ago

Chromatics, Inc., produces novelty nail polishes. Each bottle sells for 3.60. Variable unit costs are as follows:

devlian [24]

Answer:

Margin of safety= 9,000 units

Explanation:

Giving the following information:

Each bottle sells for 3.60.

Variable unit costs are as follows:

Acrylic base- .75

Pigments- .38

Other ingredients- .35

Bottle, packing material- 1.15

Selling commission- .25

Fixed overhead costs are 12000 per year. Fixed selling and administrative costs are 6720 per year. Chromatics sold 35000 bottles last year.

First, we need to calculate the variable cost per unit and total fixed costs:

Unitary variable cost= 0.75 + 0.38 + 0.35 + 1.15 + 0.25= $2.88

Total fixed costs= fixed overhead + fixed selling and administrative= 12,000 + 6,720= 18,720

Now, we can calculate the break-even point in units:

Break-even point= fixed costs/ contribution margin

Break-even point= 18,720 / (3.6 - 2.88)= 26,000 units

Margin of safety ratio= (current sales level - break-even point)

Margin of safety ratio= 35,000 - 26,000= 9,000 units

8 0

3 years ago

A business has a key person insurance policy. Who or what would be the beneficiary of the policy ? A. The children of the key pe

Masja [62]

Answer: the business

Explanation:

A P E X

6 0

3 years ago

Read 2 more answers

Philip Morris bought Miller Brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie

Olenka [21]

Answer: Points of indifference

Explanation: Point of indifference can be defined as that level of EBIT at which two alternative financial plans have same amount of net income. It is used by managers as an evaluating tool, when it comes to choose between two cost structures which are alternative of one other.

In the given case, the company must have build point of indifference before launching of new product, and must have expected higher profits than normal beer.

4 0

3 years ago