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3 years ago

At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for

Business

1 answer:

Lemur [1.5K]3 years ago

3 0

Answer:

$49,700

Explanation:

Opening balance for accounts receivable: $52,000

Add services provided on account : $12,500

total due from customers : $64,500

less payment received : $14,800

Closing balance : $49,700

The amount received as prepayment is not a receivable but a liability. Receivable refers to money owed to a business by customers for goods or services delivered by payment has not been made.

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The common stock of Alpha Manufacturers has a beta of 1.14 and an actual expected return of 15.26 percent. The risk-free rate of

Gre4nikov [31]

Answer: d. The actual expected stock return indicates the stock is currently underpriced.

Explanation:

According to CAPM, the expected return is:

= Risk free rate + beta * (market return - risk free rate)

= 4.3% + 1.14 * (12.01% - 4.3%)

= 13.09%

The actual expected return is greater than the CAPM expected return.

This stock is underpriced because it is bringing in a higher return than CAPM predicted based on the market.

8 0

3 years ago

"Which asset allocation is BEST for a 35-year old single risk tolerant investor looking to achieve the highest returns?"

ki77a [65]

Answer:

95% stocks /5% Money Markets

Explanation:

It is advisable for an investor that is relatively risk tolerant should consider devoting more of their money into stocks based investment, especially for a young, single investor who is willing to achieve highest return such that such an investor will be more likely to stay invested during the short periods of bear market fluctuations

Investment should be made based on the asset allocation plan. For a person looking to make high returns in about 20 years, he does not need to be very concerned about the stock market short-term fluctuations, compared to a person looking to put their ward through college in a few years time who should be more inclined to fixed income safer investments.

7 0

4 years ago

State and federal governments actively support education at the primary, secondary, and collegiate levels. But they mandate educ

saul85 [17]

Answer:

1. positive externalities

2. educational credit for the market failure

3. redistribution

4. failure to maximize the family utility

Explanation:

There are generally four rationales or logical thinking for the public provisions for education. They are the positive externalities, failure to maximize the family utility, educational credit for the market failure, redistribution.

Now each rationales provides reasons that educations is more likely to be underprovided without any intervention from the government. But many of them does not provide any reasons for the mandate of education.

Like suppose the government can support and solve any educational credit market failure by just offering some loan guarantees for the students while letting them chose to receive education or not.

Similarly government can also address positive externalities that are associated with productivity gains or just letting a person educated without any mandating it.

And finally, government redistributes the poor families through the progressive taxation or the offerings of free education without any mandating them.

8 0

3 years ago

Once a week, Smith purchases a six-pack of cola and puts it in his refrigerator for his two children. He invariably discovers th

MArishka [77]

Answer:

Jones purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans.

Explanation:

Cost-benefit analysis is defined as a method to estimate all the costs involved and possible profits that can be achieved in a business opportunity.

Jones purchases a six-pack of cola once a week for his two children, but unlike Smith, he tells them that each may drink no more than three cans.

So, at Smith's house, there's always a chance that one of the siblings will drink the cola before the other.

Therefore,

cola can lasts much longer at Jones's house than at Smith's.

4 0

3 years ago

E6-9 Littleton Books has the following transactions during May May 2 Purchases books on account from Readers Wholesale for $3,30

MrRissso [65]

Answer:

Littleton Books

Journal Entries:

May 2 Debit Inventory $3,300

Credit Accounts Payable (Readers Wholesale) $3,300

To record the purchase of books on account, terms 1/10, n/30.

May 3 Debit Freight-in $200

Credit Cash $200

To record the freight paid for the books of May 2.

May 5 Debit Accounts Payable (Readers Wholesale) $400

Credit Inventory $400

To record the return of some books.

May 10 Debit Accounts Payable (Readers Wholesale) $2,900

Credit Cash $2,871

Credit Cash Discounts $29

To record the full settlement on account, including discounts.

May 30 Debit Accounts Receivable $4,000

Credit Sales Revenue $4,000

To record the sale of books on account.

Debit Cost of goods sold $2,900

Credit Inventory $2,900

To record the cost of books sold.

May 24 Debit Accounts Payable (Readers Wholesale) $2,900

Credit Cash $2,900

To record the full settlement on account.

Explanation:

a) Data and Analysis:

May 2 Inventory $3,300 Accounts Payable (Readers Wholesale) $3,300

terms 1/10, n/30.

May 3 Freight-in $200 Cash $200

May 5 Accounts Payable (Readers Wholesale) $400 Inventory $400

May 10 Accounts Payable (Readers Wholesale) $2,900 Cash $2,871 Cash Discounts $29

May 30 Accounts Receivable $4,000 Sales Revenue $4,000

Cost of goods sold $2,900 Inventory $2,900

May 24 Accounts Payable (Readers Wholesale) $2,900 Cash $2,900

5 0

3 years ago