<span>The statement that formal planning means specific goals are formulated and never reduced to writing but simply communicated is false.
</span><span>In opposite formal planning is type of strategic planning that includes writing of the organization's goals and objectives. The given definition refers to the informal planning. </span>
Answer:
d. It will estimate higher residual values for its assets.
Explanation:
The depreciation is calculated on the value of the asset to be depreciated in the life of the asset that is cost - Salvage or residual value.
Thus, when the residual value is high then the amount to be depreciated will be low.
Then no matter whatever the method of depreciation be: the value of depreciation expense in dollars will be ultimately.
This will help in showing the highest earnings whatever the circumstance be.
Thus correct option is D.
Answer:
The answer is $18,870 .
Explanation:
In this question, the net realizable value of account receivables will be determined by the total credit sales during the year, cash collection from account receivable; the estimated uncollectible amount from credit sales.
We have Net Realizable value of account receivables = Total credit sales during the year 2016 - total cash collection - Estimated uncollectible amount(*) = $93,000 - $73,200 - $93,000 x 1%(*) = $18,870.
(*) Estimated uncollectible amount is $930 and is recorded in Allowance for doubtful debt account which is a contra account for Account Receivables. Thus, when deciding net realizable value of account receivables, the effect of this contra account should be taken into consideration.
Answer:
P1=$8.43
Explanation:
The value of the stock is equal to the present value of all cash-flows expected from holding the stock. At the end of year 1, the value of the stock is found by calculating the present value of the remaining dividends i.e D2, D3, D4, D5 etc till infinity.
Therefore price equals
given the values of Dividends calculated above and ke= 15% :