Answer:
the amount of write-offs during the year= $28,000
Explanation:
Amount written off = Beginning allowance for doubtfull accounts + Bad debts expense - Closing allowanve for doubtfull accounts
= 54000+48000-74000
= 28000
Answer:
Aggregate demand shifts to the right.
Explanation:
Tax rebate means that the people have a tax benefit that increases their disposable income.
When there is additional income available for people to spend, there is an increased demand that shifts to the right the aggregate demand curve.
It is unconnected to the supply curve and inflation so the correct answer is option A.
Hope that helps.
Answer: Investment income = Earning during 2018 × outstanding common shares
= $80,000 × 35%
Dividend declaration = Dividend × outstanding common shares
= $40,000 × 35%
<em>Ramsey’s share of Vapor’s income for 2018 = Investment income - Dividend declaration</em>
<em>= $28,000 - $14,000</em>
<em>= $14,000</em>
Answer:
Work in Process Inventory account at the end of September is $1,950
Explanation:
As all jobs at the beginning of september in the balance of Work in progress were finished, it's costs are now in Finished Goods Inventory. So are too, the two jobs started and finished during September. The Works in Process account records materials, labor and structure costs of order not finished yet at the end of the month.
At the end of september only Job 850 is not finished. The sum of materials, direct labor and overhed that is $1.950, is the balance of Work in Process Inventory account at the end of September.
Answer:
Using the discount cash flow model to value the company, we can say that the company is worth $85 million / 12% = $708.33 million
Each stock should be worth approximately $708.33 million / 100 million = $7.0833 per stock
If the company uses the cash to finance new projects, then future cash flows should be approximately $97.75 million, and the company's value = $97.75 million / 12% = $814.583 million. This represents a 15% increase in value. The stock price should also increase by 15% to $8.1458 per stock.
If the company instead decides to repurchase stocks using all the cash, then it could repurchase 35.29 million stocks. Since we are assuming that the company's future cash flows wouldn't be affected by this decision, then the company's total value will still be $708.33 million, but each stock would be worth much more = $708.33 / 64.71 million stocks = $10.95. This represents a 34.36% increase with respect to the other alternative of investing the cash.
The issue here, is that this situation is not very realistic. It is not normal for a company to use all of its cash to repurchase stocks since it would result in a huge increase in stock prices (stock prices are set by supply and demand). Also, this would also result in a sharp increase in the cost of equity due to higher risks.
