The answer to this question is the last item in the choices which is "decrease consumer surplus". Thus, we have it like along a given downward-sloping demand curve, an increase in the price of a good will also result to decrease consumer surplus. Also, when decrease consumer surplus is happening it will effect also to increase producer surplus.
Answer and Explanation:
for Accounts Receivable. At year-end, the L. Cole Company has completed services of $23,500 for a client, but the client has not yet been billed for those services:
accounts receivable is debited and service revenue is credited for $23,500 because the company has provided service to customer and so company would recognize revenue by crediting service revenue for increase in revenue and since the payment is not yet made accounts receivable being asset is debited for increase in balance.
for Interest Receivable. At year-end, the company has earned, but not yet recorded, $570 of interest earned from its investments in government bonds:
interest receivable is debited and interest income is credited for $570 because the company has earned interest and so interest is income for the company and so interest income is credited for increase in revenue. The interest is yet to be received by the company and therefore interest receivable being asset is debited for increase in balance.
for Accounts Receivable. A painting company bills customers when jobs are complete. The work for one job is now complete. The customer has not yet been billed for the $1,660 of work.:
accounts receivable is debited and service revenue is credited for $1,660 because the company has provided service to customer and so company would recognize revenue by crediting service revenue for increase in revenue and since the payment is not yet made accounts receivable being asset is debited for increase in balance.
Answer:
a. Particulars Amount
Gross sales $925,000
Less: COGS <u>$490,000</u>
EBITDA $435,000
Less: Depreciation <u>$120,000</u>
EBIT $315,000
Less: Interest on notes payable <u>$8,800 </u> (220000*4%)
EBT $306,200
Less: Tax (35%*306200) <u>$107,170</u>
Net Income <u>$199,030</u>
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b. Operating cash flow = Net income + Depreciation
Operating cash flow = $199,030 + $120,000
Operating cash flow = $319,030
Answer:
The forward premium (discount) is:
the dollar is trading at a 10% discount to the euro for delivery in 120 days.
Explanation:
a) Data and Calculations:
Spot exchange rate = €1.50/$
120 day forward exchange rate = €1.45/$
When the forward rate is less than the spot rate, the means that the currency is trading at a discount in the forward market.
The formula for calculating the forward premium or discount is:
= (Forward Rate Minus Spot Rate)/Forward Rate * 360/120
= (€1.45 - €1.50)/€1.45 * 360/120
= €-0.05/€1.45 * 3
= €-0.03448 * 3 = -10.3%
b) The forward premium occurs when the forward exchange rate is higher than the spot exchange rate. The forward discount occurs when the forward exchange rate is lower than the spot exchange rate. Forward premium or discount is normally expressed as the annualized percentage of the difference, using 360 days.
Answer:
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