Answer:
Promissory agreement.
Explanation:
A promissory agreement can be defined as an evidence of a debt and as such involves the use of a legal financial tool such as a promissory note as a written promise to declare that a party (borrower) would pay another (lender) at a specific period of time.
Thus, when goods are sold to a customer by a business entity and the customer promises to pay an amount of money at a certain future time period it is known as a promissory agreement.
A promissory note can be defined as a signed document that contains a written promise by a customer to pay a specific amount of money to an individual or business firm, on demand or at a certain future time period, for the goods or services purchased.
Answer:
$108,500
Explanation:
The preparation of the operating activities section is presented below
Cash flow from operating activities
Net income $62,000
Add: depreciation expense $77,000
Add: Increase in account payable $10,000
Add: Increase in income tax payable $16,500
Less: Increase in prepaid rent -$57,000
Cash flow from operating activities $108,500
The negative amount shows cash outflow and the positive amount shows the cash inflow
Answer:
Option (B) is correct.
Explanation:
If there is an increase in the income of the consumer then as a result there is a parallel shift in the budget line. This increase in income will increase the real purchasing power of the consumers and hence, this would increase the quantity of two goods consumed in an equal proportion.
Other factors remains the same, an increase in the income level of the consumer will increase the consumption of both the goods because the prices of both the goods are constant.
Answer:
Average cost units in inventory=$1,205
Explanation:
August 8
Weighted average cost in August 8
=( (2 × 100 )+ (3 × 250))/5=$190
Cost of goods sold in August 15 = 190× 3= 570
Balance in inventory in August 15 = 950
- 570 =380
Weighted average cost in August 25 = 380 + (3* 275)/(2+3)= 241 per
Average cost of units = $241 per unit
Average cost units in inventory in August 25= $241×5
=1205
Average cost units in inventory=$1,205
Answer:
12.12%
Explanation:
The computation of the best estimate of the company cost of equity is as follows;
The required rate of return as per CAPM Is
= Risk free rate of return + beta × market risk premium
= 3% + 1.01 × 10%
= 13.1%
Now
Dividend growth model (r) is
=(($1.60 × 1.06) ÷ $33) + 0.06
= 11.14%
Now the best estimate would be
= (13.1% + 11.14%) ÷ 2
= 12.12%
