Answer:
The answer is Yes
Explanation:
Contingent liability is the type of liability that is dependent on some uncertain future events or occurrences. The 90-day warranty gives rise to contingent liability. This liability should be recognized when it can be reasonably estimated. For example, The estimation of contingent liability is 6percent of the sales of computers.
Therefore, contingent liability should be recognized.
Answer:
D.
Explanation:
Due to the fact that the contract would only last 6 months and there's no expected repeat business from the Saudis or any one, the best course of action to take in order to avoid expected labour shortage is to use .
Overtime can be defined as a situation where the hours worked by an employee execeed normally scheduled working hours. In order to meet the 6 months and not cause labour shortage, the company can decide to use it's current workers for overtime and pay them for the overtime.
Answer:
P0 = $9.0767092 rounded off to $9.08
Explanation:
The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
- D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on
- g is the constant growth rate in dividends
- r is the discount rate or required rate of return
P0 = 0.31 / (1+0.1) + 0.36 * / (1+0.1)^2 + 0.51 / (1+0.1)^3 + 0.81 / (1+0.1)^4 +
[(0.81 * (1+0.025) / (0.1 - 0.025)) / (1+0.1)^4]
P0 = $9.0767092 rounded off to $9.08
Answer:
Results are below
Explanation:
Giving the following information:
Sales are 80% cash and 20% on account.
Sales:
May= $500,000
June= $680,000
July= $720,000
Cash collection June:
Cash collection from May= (500,000*0.2)= 100,000
Cash collection June= (680,000*0.8)= 544,000
Cash collection June= $644,000
Cash collection July:
Cash collection from June= (680,000*0.2)= 136,000
Cash collection July= (720,000*0.8)= 576,000
Cash collection July= $712,000
