Answer:
rate = 6.3235%
At a market rate of 6.3235% this will be a fair deal
Explanation:
under perpetuities the principal is never redeem. the investor receive cash payment for an indefinite period of time
This means:
perpetuities present value = C/r
where:
C= annual payment
r= rate
680,000 = 43,000/rate
43,000/680,000 = rate
0.06323529 = rate
rate = 6.3235%
Laramie produces two products: Basic and Deluxe. The plant’s overhead for January was $45,000 and the plant used 600 direct labor (DL) hours. The factory has two departments: Preparation and Processing. The Preparation Department incurred $25,000 of overhead and used 400 DL hours. In the Processing Department, $20,000 of manufacturing overhead was incurred and 160 DL hours were used. During January, 300 DL hours were used by the Basic model and 300 DL hours were used by the Deluxe model to make 100 units of each. What is Laramie departmental overhead rates based on DL hours (DLH)?
Final answer:
Laramie's departmental overhead rates are calculated based on the manufacturing overhead and direct labor hours by department, resulting in $62.50 per DLH for the Preparation Department and $125.00 per DLH for the Processing Department.
Explanation:
To calculate the departmental overhead rates based on direct labor hours (DLH) for Laramie's departments, we begin by understanding that total manufacturing overhead costs are distributed across the Preparation and Processing Departments. The total overhead for the plant for January is given as $45,000, divided between the Preparation Department ($25,000) and the Processing Department ($20,000). The total direct labor hours used in the Preparation Department are 400 DL hours, and in the Processing Department, 160 DL hours are used.
Departmental overhead rates are calculated by dividing the total overhead for each department by the total direct labor hours used in that department. Therefore, the calculation is as follows:
Preparation Department Overhead Rate: $25,000 / 400 DLH = $62.50 per DLHProcessing Department Overhead Rate: $20,000 / 160 DLH = $125.00 per DLHThis means that for every direct labor hour used in the Preparation Department, $62.50 is allocated for overhead, and for every direct labor hour used in the Processing Department, $125.00 is allocated for overhead.
Producer surplus: A. is the difference between the maximum amount a person is willing to pay for a good and its current market price. B. is the difference between the true value of a product and the amount the firm wants to receive. C. represents the minimum amount a firm must receive for a particular product in order to be able to produce the product . D. is the difference between the current market price and the cost of production for the firm.
Answer:
B. is the difference between the true value of a product and the amount the firm wants to receive.
Explanation:
Producer surplus refers to the surplus received by a producer, that is the amount in which the producer will sell the goods less the amount the actually received on sale of the product.
In the given statement true value will be the market value the product will fetch and the value the firm expects is the value expected by producer therefore, above statement is best suitable to define producer surplus.
B. is the difference between the true value of a product and the amount the firm wants to receive.
An increase in real GDP__________
a. increases the buying and selling of goods and increases the demand for money as a medium of exchange.
b. increases the buying and selling of goods and decreases the demand for money as a medium of exchange.
c. decreases the buying and selling of goods and increases the demand for money as a medium of exchange.
d. decreases the buying and selling of goods and decreases the demand for money as a medium of exchange.
Answer: Option A
Explanation: Real gross domestic product is the value of the goods and services produced in the economy stated in terms of base year prices. The real GDP is adjusted for the inflated prices, thus, it is seen as the more appropriate measure of valuing the GDP.
As, the value of GDP in real GDP is adjusted for base year prices we can conclude that if there is an increase in it then it must be due to the increase in the quantity of goods and services bought and sold and it will result in an increase in the demand for money.
After 'Mary's Gifts and Cards' surveyed its customers, it discovered that its customers preferred the company's competition more than 70 percent of the time. The most frequently cited reason was customer service. During which stage of Lewin's change model should Mary provide her employees with this information about the problems with customer service?
Answer: Unfreezing stage
Explanation: Under the unfreezing stage the organisation tries to detect the problems in operational services hindering the business, in this the organisation tries to know the current status of the organisation in the market and the needs of the customers which are not getting fulfilled. After realizing the needs and requirements of customers the plans, goals etc of the organization are changed accordingly.
In the given case the company is detecting the problems in customer service so the unfreezing stage would be an appropriate stage for Mary to provide this problem to employees.
Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use __segmentation when stocking condiment merchandise
Answer:
Consumers in Louisiana love hot sauce, and Tabasco and Crystal brands are particularly popular there. Consumers in Michigan do not like hot food, so they purchase very little hot sauce. A national chain of grocery stores would likely use geographic segmentation when stocking condiment merchandise
Explanation:
Geographic sementation is when a business divides its market considering geography.
A progress report:
A. Monitors and controls production, sales, shipping, service, or related business processes.
B. Makes recommendations to management and becomes a tool to solve problems and make decisions.
C. Discusses competing products with an analysis of relative advantages and disadvantages.
D. Documents and indicates the extent to which a product is within established compliance parameters.
Answer:
A. Monitors and controls production, sales, shipping, service, or related business processes.
Explanation:
The Progress Report is the main tool for checking project status. It shows how much work still needs to be done on the project. This is done by estimating the effort required to complete each of the Work Items to be addressed in the project and showing how the estimated effort is evolving from one iteration to another. The Project Progress Report should be updated at the end of each iteration.
It is through the progress report that it is possible to monitor and control the production, sales, shipping, service, or related business processes.
An analytical procedure example is the comparison of:
Multiple Choice
a. Financial ratios of the current year to previous years.
b. Recorded amounts of major disbursements with appropriate invoices.
c. Results of a statistical sample with the expected characteristics of the actual population.
d. EDP generated data with similar data generated by a manual accounting system.
Answer:
The correct example of an analytical procedure is the comparison of A) financial ratios of the current year to previous year.
Explanation:
Analytical procedure is a type of financial audit process which is usually done by an auditor or a person who has extensive knowledge of the business and the industry. Through this process an auditor , is trying to understand the clients business and changes that are taking place in the industry , so that he or she can identify what are the potentially risky areas for the company.
In this process an auditor would compare the financial statements of the company with the source of information or with previous years financial statements to see what re the areas in which company has improved or needs to be improved.
So it won't be wrong to say that an example of analytical procedure would be comparing the financial ratios of current year to previous year.
Sam expressed interest in buying a painting from Jasper, whose asking price was $15,000. Sam was only willing to offer $13,000. Jasper told him that it was a very old painting worth a fortune and that others would gladly pay $20,000 for it. Sam decided to buy the painting for $15,000 on the condition that if he found that the painting was worth less than $15,000, Jasper would have to take the painting back and refund Sam. Which of the following warranties did this sales contract have?
A. an express warranty
B. an implied warranty of merchantability
C. an oral contract
D. a statement of opinion
Answer: A statement of opinion is the warranty that was associated with this contract.
Here, it is important to ponder upon the fact that Sam decided to buy the painting for $15,000 on the condition that if he found that the painting was worth less than $15,000, Jasper would have to take the painting back and refund Sam.
This indeed makes Sam's purchase validated with a warranty that is known as a statement of opinion. Although , it should be duly noted that the opinion does not make significant impact on the purchase.
When a union raises the wage above the equilibrium level, a. the quantity of labor supplied falls and unemployment rises. b. both the quantity of labor supplied and unemployment rise. c. both the quantity of labor supplied and unemployment fall. d. the quantity of labor supplied rises and unemployment falls.
Answer:
b. both the quantity of labor supplied and unemployment rise
Explanation:
The labor market operates under the logic of balancing labor supply and labor demand. The adjustment vector for this balance is the price of wages. When a union of unions forces wages up, naturally more workers will offer work because they see an opportunity that benefits them. However, the higher salary is a cost to firms, which have hired fewer employees and eventually fired. Therefore, both labor supply and unemployment increase.
A customer has come to your department with an urgent question. You promised her that you would collect information about her question and answer it by noon. It will take you at least 20 minutes to gather the information needed to provide an answer. It is now 11:50 a.m. Your supervisor just scheduled a 30-minute meeting to start at noon. This meeting is for all employees in your department. You decide to:
Answer: ask for permission to arrive about 12:15 in the afternoon to the meeting and reply the customer question first.
Explanation:
Most of the actions taken inside a company are directed to customers' satisfaction, they are an important part of all business, so they have to be a priority. In this case, the worker can explain to the supervisor the urgent necessity of replying to the customer and the previous promise that has done of replying by noon. The supervisor may understand the important situation and summarize for the worker the 10 first minutes of the meeting; in this way the worker won't miss the meeting and will keep his commitment with the customer.
What is the oldest retailer still operating in the u.S.?
Answer:
Brook brothers is the oldest that is still doing business today
First store was open in 1818
At the U.S. division of Bluebell Inc. the productivity of the employees was going down. Kinsey, the branch manager conducts a thorough research and learns that most of the employees were involved in social loafing. While preparing the report on his findings, Kinsey states his view in the primary message. Then he lays down the evidence supporting his argument and finally concludes with suggestions for solving the problem at hand. The message developed by Kinsey is based on the _____ approach.
Answer:
kio mrg[riehi0ehehrehrrehrehheheheh
Explanation:
Target ROI is 19% Invested Capital is $527956 Full Cost per unit $1446 Expected sales volume is 748 units. If the company prices each unit to earn the target ROI, what amount of profit would be added to the cost of each unit? Round your answer to the nearest whole dollar . Don't use dollar signs or commas when entering your answer.
Answer:
The amount of profit that would be added to the cost of each unit is $134.
Explanation:
For taking out the amount of profit to be added , we will use formula -
PROFIT / EXPECTED SALES PER UNIT
In the question we have been given sales per unit ( 748 ) but profit is not given, so to calculate profit we will do -
INVESTED CAPITAL X ROI
= $527956 X 19%
= $100311.64
=$100312 (APPROXIMATELY)
Now we will put the value of profit and sales unit in the formula -
PROFIT / EXPECTED SALES PER UNIT
= $100312 / 748
= $134.106
= $134 (APPROXIMATELY)
Perggy's Bakes, a bakery in New Orleans that exclusively sells its confectionery products online, makes its products only when it receives an order. The bakery produces the products as per the order and delivers to the customer's homes. It does not produce any excess products. In the given scenario, the price associated with the demand and supply of the products at Perggy's Bakes reflects the _____.
Answer:
I feel like something is wrong in the question. Can you check it again?
Explanation:
If domestic residents of France purchase 1.2 trillion euros of foreign assets and foreigners purchase 1.5 trillion euros of French assets, then France’s net capital outflow is
a. .3 trillion euros, so it must have a trade deficit.
b. .3 trillion euros, so it must have a trade surplus.
c. -.3 trillion euros, so it must have a trade surplus.
d. -.3 trillion euros, so it must have a trade deficit.
Answer:
b. .3 trillion euros, so it must have a trade surplus.
Explanation:
In order to have a trade surplus your exports must be greater than your imports. In this case imports were valued at 1.2 trillion euros and exports were valued at 1.5 trillion euros. As we can evidently see the exports are bigger than imports this is therefore a trade surplus and a surplus is always positive.
The UCC's entrustment rule a. allows a person who has no legal right to possession of particular goods (i.e., a thief) to sell them to a good faith purchaser. b. allows a person who has been entrusted with goods to sell those goods to anyone who is doing business in the seller's store as long as the seller normally sells good of that kind (i.e., bicycle store selling a bicycle). c. illustrates the UCC's objective of protecting a good faith purchaser. d. All the above answers are correct.
Answer: The UCC's entrustment rule allows a person who has been entrusted with goods to sell those goods to anyone who is doing business in the seller's store as long as the seller normally sells good of that kind (i.e., bicycle store selling a bicycle).
Under this rule, an proprietor who confide goods to a “merchant” i.e. someone who trades in that particular commodity of that type or holds himself as having cognition or ability in context to the practices or commodity involved in the dealing.
The UCC's entrustment rule allows goods to be sold by both unauthorized individuals and individuals who have been entrusted with the goods. This protects the rights of good faith purchasers and ensures that they can acquire lawful ownership of goods.
Explanation:The correct answer is d. All the above answers are correct.
The UCC's entrustment rule allows a person who has no legal right to possession of particular goods (i.e., a thief) to sell them to a good faith purchaser. It also allows a person who has been entrusted with goods to sell those goods to anyone who is doing business in the seller's store as long as the seller normally sells goods of that kind. This rule illustrates the UCC's objective of protecting a good faith purchaser by ensuring that they can acquire lawful ownership of goods that were improperly obtained.
Learn more about UCC's entrustment rule here:https://brainly.com/question/33719864
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Significant investment features for the purchaser of municipal bonds include all of the following EXCEPT: A interest is currently federal tax exempt B maturities and issues may be diversified C interest is currently state and local tax exempt D insured issues are available for customers wishing minimum credit risk
Answer: the correct answer is C interest is currently state and local tax exempt.
Explanation:
A municipal bond is a debt obligation issued by a non-profit organization.
The option C. offers regular or common features that's why it is the correct answer (they are not significant).
Final answer:
The significant investment feature that does NOT typically apply to municipal bonds is that interest is currently state and local tax exempt; exemptions on state and local taxes can vary depending on the investor's state of residence and the state that issues the bond.
Explanation:
The significant investment features for the purchaser of municipal bonds include tax exemptions on interest, potential diversification through different maturities and issues, and the availability of insured issues to minimize credit risk. However, the correct option that does NOT typically apply to municipal bonds is option C: interest is currently state and local tax exempt. While interest on municipal bonds is often federally tax-exempt, it is not always exempt from state and local taxes. This exemption depends on the state in which the investor resides and the state that issues the bond, meaning it is not a uniform feature across all municipal bonds.
Suppose that autonomous consumption is 1 comma 500, government purchases are 1 comma 500, planned investment spending is 1 comma 500, net exports are negative 500, and the MPC is 0.6. Equilibrium GDP is equal to $ nothing. (Enter your response as an integer.)
Answer: $2500 ⇒ Equilibrium GDP
Explanation:
Given that,
autonomous consumption ([tex]\bar{C}[/tex] )= 500
government purchases(G) = 500
planned investment spending (I) = 500
Net Exports (NX) = (-500)
Y = GDP
MPC (c) = 0.6
Consumption (C) = [tex]\bar{C}[/tex] + cY
= 500 + 0.6Y
Y = AD
Y = C + G + I + NX
Y = 500 + 0.6Y + 500 + 500 + (-500)
0.4Y = 1000
Y = [tex]\frac{1000}{0.4}[/tex]
Y = $2500 ⇒ Equilibrium GDP
Wilson’s Market is considering two mutually exclusive projects that will not be repeated. The required rate of return is 13.9 percent for Project A and 12.5 percent for Project B. Project A has an initial cost of $54,500, and should produce cash inflows of $16,400, $28,900, and $31,700 for Years 1 to 3, respectively. Project B has an initial cost of $69,400, and should produce cash inflows of $0, $48,300, and $42,100, for Years 1 to 3, respectively. Which project, or projects, if either, should be accepted and why?
Answer:
Project A shall be accepted as Project A has positive and higher NPV than Project B.
Explanation:
Since the projects are mutually exclusive we will evaluate the NPV that is Net present value of the projects.
Project A
Present Value of Cash outflow = $54,500
Rate of return = 13.9%
Present value of cash inflows
Year Cash flow PV @13.9% Present Value
1 $16,400 0.878 $14,399.2
2 $28,900 0.771 $22,281.9
3 $31,700 0.677 $21,460.9
Total cash inflow $58,142
NPV = $58,142 - $54,500 = $3,642
Project B
Present Value of Cash outflow = $69,400
Rate of return = 12.5%
Present value of cash inflows
Year Cash flow PV @ 12.5% Present Value
1 $0 0.888 $0
2 $48,300 0.790 $38,157
3 $42,100 0.702 $29,554.2
Total cash inflow $67,711.2
NPV = $67,711.2 - $69,400 = -$1,688.8
Since NPV of Project B is negative and that of project A is positive Project A shall be selected, as there will be loss in case of Project B.
Someone who relies on his or her ability to show empathy and express his or her emotions to win his or her employees' trust and build cohesion is a good example of a _______ leader
Answer:
Here the correct answer is empathetic leader.
Explanation:
Empathy can be best described as recognizing other people's needs and wants and also understanding their perspective and feelings.
It is often said that a leader should be empathetic because how would a leader be able to motivate his or her employees if doesn't know about them or their feelings. It is very important for an leader to be empathetic so that he or she is able to gain the trust of his employees .
A store has clearance items that have been marked down by 20%. They are having a sale, advertising an additional 30% off clearance items. What percent of the original price do you end up paying?
Answer: the correct answer is 56% of the original price.
Explanation: Let's say the original price is 100 - (0.20*100) = 80. the price is now 80 with the discount. The new discount is now 80- (0.30*80) =80-24 = 56. If 100 is 100%. How much is 56 of 100 in terms of percentage and the answer is 56%.
Which of the following causes the unemployment rate to understate the true extent of joblessness?A) Many fulltime workers really want to be part time workers.B) Persons who collect unemployment benefits report themselves to be searching for a job.C) Discouraged workers are not counted as unemployed.D) A drug dealer reports herself as unemployed.E) Discouraged workers are counted as unemployed.
Answer:
E) Discouraged workers are counted as unemployed
Unemployment is the nonworking people who are abv the age of 15 and are not being employed or contributing something to the economy of the country.
The workers that are not given jobs or are disapproved of jobs are ones that face unemployment. This could be due to the competition, newer technology, market regulation, etc. The labor force activity is seeing employment but is unable to find one. Is the rue sense of unemployment. Hence the option E is correct.Learn more about the causes of the unemployment rate to.
brainly.com/question/13994719.
Much of macroeconomics attempts to explain a. changes in the growth rate of state government spending. b. changes in the prices and quantities of individual goods and services. c. long-run growth and short-run fluctuations in real GDP. d. changes in the price of oil and gasoline.
Answer:
C) long-run growth and short-run fluctuations in real GDP
Explanation:
Macroeconomics is a strand of economic science that discusses large economic aggregates, such as income, inflation, and employment variations. It is an approach that aims to discuss these factors and bring about improvements through economic policies. The concerns of the macroeconomy are mainly to maintain a stabilized economic system, with sustainable growth of GDP, income and social and economic indicators.
Tulip Co. owns 100% of Daisy Co.'s outstanding common stock. Tulip's cost of goods sold for the year totals $600,000 and Daisy's cost of goods sold totals $400,000. During the year, Tulip sold inventory costing $60,000 to Daisy for $100,000. By the end of the year, all transferred inventory was sold to third parties. What amount should be reported as cost of goods sold in the consolidated statement of income?
Answer:
Amount to be reported as cost of goods sold in the consolidated financial statement = $900,000
Explanation:
When a company holds 100% shares or more than 50% shares of another company that is common stock, they establish a holding subsidiary relationship in which equity method is to be followed.
As per equity method all the cost of goods sold by that of subsidiary is to be added to financial statements of holding while making consolidated financial statements.
In this if there are any sales or purchase between holding and subsidiary then such profit is not be added up till that inventory is further sold to third party.
In case the inventory is sold to third party then entire profit that is inclusive of holding to subsidiary is to be included as part of consolidated financial statements.
Therefore in the above case since Daisy has sold the inventory purchased from Tulip, entire cost of goods sold shall form part of consolidated financial statements.
Here amount to be reported as cost of goods sold in the consolidated financial statement = $600,000 + $400,000 = $1,000,000
Further the cost of goods sold is included 2 times, first in Tulip's account for $60,000 and then the same in Daisy's account for $100,000. In consolidated statement double amount should not be added, thus net cost of goods sold = $1,000,000 - $100,000 = $900,000
The consolidated cost of goods sold in the statement of income for Tulip Co. and Daisy Co. should be reported as $940,000, which is the sum of both companies' costs less the cost of inventory Tulip sold to Daisy to eliminate the intercompany markup.
Tulip's cost of goods sold is $600,000, and Daisy's is $400,000. However, since Tulip sold inventory to Daisy with a markup, the $60,000 originally costing the inventory must be removed from the consolidated total, to eliminate the effect of the intercompany profit.
Thus, we calculate the consolidated cost of goods sold as follows:
Tulip's cost of goods sold: $600,000Daisy's cost of goods sold: $400,000Less: Markup on inventory sold by Tulip to Daisy: $60,000 (Tulip's cost)Tulip Co. and Daisy Co.'s consolidated cost of goods sold would therefore be $940,000 ($600,000 + $400,000 - $60,000).
Which explains the connection between the law of demand and excess demand? a. The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand. b. The law states that increases in price increases leads to greater quantity demanded and limited supply, which occurs during excess demand. c. The law states that decreases in price leads to greater supply and equilibrium, which occurs during excess demand. d. The law states that increases in price leads to greater supply and equilibrium, which occurs during excess demand.
Answer:
The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand.-a.
Which one of the following is a capital budgeting decision? A. Determining how much debt should be borrowed from a particular lender.B. Determining how much inventory to keep on hand.C. Deciding when to repay a long-term debt.D. Deciding whether or not to open a new store.E. Determining how much money should be kept in the checking account.
Answer: Deciding whether or not to open a new store is a capital budgeting decision.
Capital budgeting is the process in which a enterprise is set about to measure possible leading investments.
∴ Deciding whether or not to open a new store is a capital budgeting decision.
A nut store normally sells cashews for $4.00 per pound and peanuts for $1.50 per pound. But at the end of the month the peanuts had not sold well, so, in order to sell 40 pounds of peanuts, the manager decided to mix the 40 pounds of peanuts with some cashews and sell the mixture for $ 2.00 per pound. How many pounds of cashews should be mixed with the peanuts to ensure no change in the revenue?
Final answer:
The manager needs to mix 10 pounds of cashews with the 40 pounds of peanuts to ensure no change in revenue when the nuts are sold for $2.00 per pound.
Explanation:
To ensure there is no change in revenue when mixing cashews, which normally sell for $4.00 per pound, with peanuts that sell for $1.50 per pound, and selling the mixture for $2.00 per pound, we must calculate the required amount of cashews to add to 40 pounds of peanuts. We can set up an equation where the total revenue of the nuts before mixing must equal the total revenue after mixing. This can be represented by:
(Cashews weight) × (Cashews price) + (Peanuts weight) × (Peanuts price) = (Total weight after mixing) × (Mixture price)
Let's denote the weight of cashews to be mixed as x. The equation based on the provided prices would then be:
(x pounds of cashews × $4.00) + (40 pounds of peanuts × $1.50)= (x + 40 pounds) × $2.00
Solving this equation for x gives us:
(4x + 60) = 2x + 80
Simplifying further, we get:
2x = 20
Dividing both sides by 2, we find that x = 10.
Therefore, the manager needs to mix 10 pounds of cashews with the 40 pounds of peanuts to ensure that the revenue remains unchanged.
The manager of the customer service division of a major consumer electric company is interested in determining whether the customers who have purchased a Blu-ray player made by the company over the past 12 months are satisfied with their products. If there are 4 different brands of Blu-ray players made by the company, the best sampling strategy would be to use a?
Answer: Stratified random sampling
Explanation:
Given : The manager of the customer service division of a major consumer electric company is interested in determining whether the customers who have purchased a Blu-ray player made by the company over the past 12 months are satisfied with their products. If there are 4 different brands of Blu-ray players made by the company.
The best sampling strategy which we can use is stratified random sampling because it is not much costly and also it induces the efficiency . We can me different strata according to the 4 brands , then we can randomly select participants for the sample.
Stratified random sampling is a method of probability sampling in which a researcher divides the entire population into multiple homogeneous groups known as strata and then he randomly select an sample members from each strata for research .The manager should use a stratified random sampling strategy to ensure each of the four brands of Blu-ray players is represented proportionately, improving the accuracy of the customer satisfaction assessment.
To assess customer satisfaction with the company's Blu-ray players over the past 12 months, the manager of the customer service division should utilize a stratified random sampling strategy. This approach involves dividing the population of Blu-ray player customers into four strata, corresponding to the four different brands of Blu-ray players. Then, a random sample is taken from each stratum to ensure representation from all brands. This method provides a more accurate reflection of the overall customer satisfaction than taking a simple random sample from the entire population, as it guarantees that each brand is represented in proportion to its market presence.
A doctor for the Benson Family Practice performs a sports physical exam for Allison Smythe on February 1. The charge for the exam is $100; Smythe's insurance company, Cardinal Health, is billed for the entire $100 on February 1. Cardinal Health receives the invoice on February 2, and enters the amount into its payment system on February 4. Benson Family Practice receives the $100 payment from Cardinal Health on February 20. On which date would Benson Family Practice recognize the revenue for the Smythe's physical?
Answer:
On February 1st
Explanation:
The revenue is recognize in accounting when generated. Regardless of the payment date. This means, when the revenue is real and earned.
The services were perform and billed on february 1st. This is ground to recognize revenue.
This will be a case of Accrued revenue
Accrued revenue The cash receipts occurs after the billing and recognition of the revenue.
Revenue for Allison Smythe's physical would be recognized by the Benson Family Practice on February 1, the date of the service, according to accrual accounting principles.
In accounting principles. the revenue is recognised in accounting when generated. Regardless of the payment date. This means, when the revenue is real and earned. The Benson Family Practice would recognize the revenue for Allison Smythe's physical on the date the service was provided, which is February 1.
Thus, this is based on the accrual accounting principles, where revenue is recognized when earned, regardless of when the payment is actually received. Despite the payment from Cardinal Health being received on February 20, the revenue for the service is recorded on the date the service was provided to the patient.
"The risk‐free interest rate on one‐year debt is 7 percent and the return on the market is expected to be 13 percent. A stock with a beta of 1.2 pays no dividends over the next year. If it is currently priced at $15.00, what will its price be at the end of the year?"
Answer:
Price be at the end of the year = $17.13
Explanation:
Using the capital asset pricing model we have,
[tex]E(R) = R{_f} + \beta (R{_m} - R{_f})[/tex]
Where E(R) = Expected return on investment
R[tex]{_f}[tex] = Risk free rate of return = 7%
[tex]\beta[tex] = 1.2
[tex]R{_m}[tex] = Return on the market
Here we have
E(R) = 7% + 1.2(13 - 7)%
= 0.07 + 0.072 = 0.142
= 14.2%
Therefore price of share at year end = $15 + 14.2% = $17.13
That is current cost + expected return on this investment = $17.13