Answer:
The answer is c. They can gauge their success in improving their own value-enhancing contributions to the firm
<span>Answer:
R = Pe^(kt) where R = revenue, P is present value, k is interest rate and t is time in years.
(60 000 + 45 000+ 75 000)/2 = Pe^(.07*1)
90 000 = Pe^.07
P = 90 000/e^.07 = $83915.44
(60 000 + 45 000+ 75 000)/2 + 75 000(t-1) = 150 000 e^(kt)
90 000 + 75 000t - 75 000 = 150 000e^(.07t)
15 000 + 75 000t = 150 000e^(.07t)
1/10 + 1/2t = e^(.07t)
ln(.1 + .5t) = .07t
ln(.1+.5t)/t = .07
t = 2.12 years</span>
Answer:
No impact on accounting equation of Breeze Inc.
Explanation:
Account equation: Asset = Liabilities + Shareholders' equity
Upon delivery and invoicing of the 4 wind turbines, the Breeze Inc. had recognized following journal entry:
An asset is recorded
Accounts receivable (Debit)
Sales (Credit)
Upon receipt of cash, accounts receivable is credited and cash is credited e.g. there is no impact on total assets, therefore there is no impact on accounting equation.
Answer:
No margin call is required
the price per bushel to trigger margin call = 1102 cents per bushel
Explanation:
The computation of given question is shown below:-
The Difference between the rates of futures = Settle Quote of present day - Closing Settlement Price Quote when future was sold
= 808 - 786
= 22
The margin on present day for future = quoted in cents × Difference between the rates of futures
The future is sold for 5000 bushels , this is quoted in cents that is $50
= 22 × 50
= 1,100
Current margin call = Initial margin - Price change
= $6,075 - 1,100
= $4,975
Therefore no margin call is required as the margin balance is exceeds the maintenance margin requirement.
maximum loss per contract before margin call = Initial margin - Maintenance Margin
= $6,075 - $4,500
= $1,575
Maximum price before margin call = 786 + (1,575 ÷ 5,000)
= 786 + 315
= 1101 cents
So, the price per bushel to trigger margin call = 1102 cents per bushel
