Answer: C. Jill should focus on the business market and license the natural gas rights.
Explanation:
Option C is indeed the right answer. Focusing on the Business Market will get her a better deal because larger companies will be involved.
It would be very advantageous to license the rights as there will be various bids for the license with the largest bid getting it and only for a period of time.
Going with this option can get Jill a better deal all round.
Answer and Explanation:
The journal entries are shown below:
On Mar 12
Account receivable Dr $9,100
To Service revenue $9,100
(Being the service provided on the account is recorded)
For recording this we debited the account receivable as it increased the assets and credited the service revenue as it also increased the revenue
On Mar 20
Cash $8,918
Sales discount ($9,100 × 2%) $182
To Accounts receivable $9,100
(Being cash received recorded)
For recording this we debited the sales discount and cash as it increased the discount and assets and credited the account receivable as it reduced the assets
Answer:
The correct option is C. Recognize $9 million Gross Profit in 2016.
Explanation:
IFRS-15 states that a 4-step approach should be followed when the performance obligation is satisfied over a period of Time. In-this case, the performance obligation will be satisfied within three years from 2016 to 2018.
4-step Approach:
1) First of all you have to calculate the over gain/loss of the project, and the result will decide the entries to be made. In this case, the contract price is $150m and the total costs (Costs incurred + Expected Costs) are $120m. This gives us a Profit of $30m.
2) In the second step, we have to determine the progress of the contract, It means that how much work have we done so far. There are two methods to calculate the progress: Input Method and the Output Method. Based on the data available, we will go for Input Method. To calculate progress under this method, simply divide the costs incurred by the total costs and multiply the result with 100 to get the percentage. 30% is the progress of the contract.
3) Revenue (150 * 30%) = $45m
COS (120 * 30%) = $36m
Gross Profit = $9m
* 120 is the Total Cost.
4) The last step involves determining Contract Assets and Liabilities. I won't go in to the detail because this step is not concerned with your question. You are open to ask questions regarding this step if you need.
Thanks.
Answer:
$8,460
Explanation:
The computation of product margin for product F60N is shown below:-
Total overhead cost = ($1,372,578 × 1,200 ÷ 61,800) + ($63,235 × 78 ÷ 2,010) + ($151,316 × 34 ÷ 2,090)
= $26,652 + $2,454 + $2,462
= $31,568
Per unit overhead cost = $31,568 ÷ 600
= $52.61
Per unit cost = Direct material + Direct labor + Overhead cost
= $49.55 + $12.44 + $52.61
= $114.60
Finally
product margin for product F60N is = (Selling price - Per unit Cost) × Number of units sold
= ($128.70 - $114.60) × 600
= $14.1 × 600
= $8,460
Calculate the value of
the stock:
<span>The dividend on
preferred stock is received constantly for perpetuity. So, the value of
preferred stock can be calculated by dividing the dividend with the required
rate of return. If the dividend rate is 8% on par value of $ 100 and required
rate is 6% the value of preferred stock will be P = (100x0.08)/0.06 = 8/0/06 =
133.3333333</span>
