Answer:
D. $686
Explanation:
Given that
Credit sale = 750
Return = 50
Terms 2/10
Amount received in full therefore,
= [(750 - 50) - (750 - 50 {2%})]
= 700 - (700 × 0.02)
= 700 - 14
= $686
Answer:
The answer is A.
Explanation:
If a person's wealth is in cash, price level changes in the economy will definitely affect the his monetary wealth.
Price level changes arise as a result of inflation. Increase in general price level in the economy will reduce the purchasing power of the cash. For example, a good that used to sell for $2, it now goes for $5.
And if there is decrease in general price level, the purchasing power of the cash will increase.
In order to deal with the declining effectiveness of traditional advertising, marketers are finding unique ways to reach out to target customers. integrating their goods with popular television programs is one such way. this sort of advertising in which actors are shown using branded products is an example of product placement.
Answer:
1. Jackson = $350,000 and Pearce = $1,020,000
2. Pearce
Explanation:
The formula to compute the free cash flow is shown below:
= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure
But for this question, the formula would be
= Cash flow from operating activities - Cash investment in property & equipment
1. For Jackson, it would be
= $500,000 - $150,000
= $350,000
For Pearce, it would be
= $1,500,000 - $480,000
= $1,020,000
2. If we see and compare the free cash flow, the Pearce has better cash flow due to the high cash flow from operating activities
Answer:
$64
Explanation:
The minimum acceptable transfer price for the sensors from the standpoint of the Sensor Division is a price that would be the best for the performance evaluation of the <u>Sensor Division Manager </u>and also <u>best for the company</u>.
If the division is transferring items to another division the goals remain the same and the price is calculated as :
Minimum acceptable transfer price = variable costs - internal savings + opportunity cost
Therefore,
Minimum acceptable transfer price = $20 + ( $64 - $20)
= $64
Therefore, the minimum acceptable transfer price for the sensors from the standpoint of the Sensor Division is $64 assuming that there is an opportunity cost of $44 that is ($64 - $20).
