Answer: 16.33%
Explanation:
With the details given, the best method of Calculating the expected rate of return is the Capital Asset Pricing Model (CAPM).
The formula is,
Er = Rf + b(Rm - Rf)
Where,
Er is expected return
Rf is the risk free rate
b is beta
Rm - Rf is the Market Premium
Er = 3.87% + 1.38(9.03)
= 3.87% + 12.4614%
= 16.33%
The model accounts for inflation by including the risk free rate which is already adjusted for inflation.
Answer:
$19,462
Explanation:
The computation of the cash and cash equivalent is shown below:
= Cash in bank account + Money market fund balance + petty cash balance + money orders
= $6,455 + $12,400 + $350 + $257
= $19,462
It includes only cash in bank account, balance in money market, petty cash balance and the money orders
All other information which is given is not relevant. Hence, ignored it
Answer:
Please find the income statement below;
Explanation:
<u>Single step Income statement</u>
Revenues
Net sales 2,419,200
Interest revenue 39,300
<em>Total revenues 2,458,500</em>
Expenses
Cost of goods sold 1,464,600
Admin. expenses 216,400
Selling expenses 294,800
Interest expense 46,000
<em>Total expenses 2,021,800</em>
<em><u>Net Income </u></em><em> </em><u><em>436,700</em></u>
Answer:
Option (c) is correct.
Explanation:
Given that,
Budgeted unit sales for August = 4,600 units
Variable selling and administrative expense per unit = $7.30 per unit
Budgeted fixed selling and administrative expense = $51,980
Depreciation per month = $6,440
Total variable selling and administrative expense:
= Budgeted unit sales for August × variable selling and administrative expense per unit
= 4,600 × $7.30
= $33,580
Total fixed selling and administrative expense:
= Budgeted fixed selling and administrative expense - Depreciation per month
= $51,980 - $6,440
= $45,540
Total cash disbursements for selling and administrative expenses:
= Total variable selling and administrative expense + Total fixed selling and administrative expense
= $33,580 + $45,540
= $79,120
