Answer:
Comparative advantage.
Explanation:
Comparative advantage is the ability to produce good and services at a lower opportunity cost compared to others , leading to lower selling price and competitive advantage over others .
Specialization is about concentrating on producing a few products in order to
build brands , expertise and gain maximum productivity leading to a reduction in selling price and a comparative advantage.
Answer:
Yes of course,the statement is true as the cheque that Mr. MLS gave him was not accepted in written format and when the written agreement was faxed , then also it was not signed by the required authorities. thus there is no authentication that it was agreed upon or not.
Snellen chart is an eye chart that can be used to measure visual acuity by determining the level of visual detail that a person can discriminate. The newborn's vision is estimated to be 20/200 on the Snellen eye examination chart. This means the new born can see at 20 feet what a normal adult can see at 200 feet.
Answer:
Parker Corporation
a) Closing Journal Entries:
General Journal
Description Debit Credit
12/31
Service fees revenue $92,500
Interest income 2,200
Retained earnings 42,700
Income Summary $137,400
To close credit items to the Income Summary.
Income Summary $64,700
Salaries expense $41,800
Advertising expense 4,300
Depreciation expense 8,700
Income tax expense 9,900
To close debit items to the Income Summary.
b. T-accounts:
Debit Credit
Service fees revenue
Adjusted balance $92,500
Income Summary $92,500
Balance $0
Interest income
Adjusted balance $2,200
Income Summary $2,200
Balance $0
Salaries expense
Adjusted balance $41,800
Income Summary $41,800
Balance $0
Advertising expense
Adjusted balance $4,300
Income Summary $4,300
Balance $0
Depreciation expense
Adjusted balance 8,700
Income Summary $8,700
Balance $0
Income tax expense
Adjusted balance 9,900
Income Summary $9,900
Balance $0
Retained earnings
Adjusted Balance 42,700
Income Summary $42,700
Balance $0
Explanation:
a) Data:
Parker Corporation
Adjusted Account Balances
Debit Credit
Service fees revenue $92,500
Interest income 2,200
Salaries expense $41,800
Advertising expense 4,300
Depreciation expense 8,700
Income tax expense 9,900
Retained earnings 42,700
Answer:
A. 12.1%
B. 8.9%
Explanation:
a. Calculation for What is the company's new cost of equity
Using this formula
New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]
Let plug in the formula
New cost of equity=[0.089+[(0.089-0.057)*(1)*1]
New cost of equity=[0.089+0.032*(1)*1]
New cost of equity=[0.121*(1)*1]
New cost of equity=0.121*100
New cost of equity=12.1%
Therefore the company's new cost of equity will be 12.1%
b. Calculation for What is its new WACC
Particular Weight Cost Weighted cost
Equity 0.5000 *12.1% = 0.0605
Debt 0.5000 * 5.7% =0.0285
WACC =0.089*100
WACC =8.9%
(0.0605+0.0285)
Therefore the new WACC will be 8.9%
