On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative
1 answer:
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Answer:
55.58
Explanation:
Data provided in the question;
Initial demand per month, Q₁ = 3
Final demand per month, Q₂ = 5
Initial price, P₁ = $33,200
Final price, P₂ = $33,500
Now,
elasticity of demand using midpoint method is calculated as :
=
or
=
on substituting the respective values, we get
=
or
=
or
=
= 55.58
Answer: B. $892.1 million
Explanation:
The Revenue was $939,393 million
When calculating how much cash was generated any increase to the Accounts Receivables is removed from the revenue because it signifies that more sales were made on credit and so have not given the business cash yet.
Any increase in Deferred Revenue must be added because this is Cash that has been given to the business but for accrual purposes cannot be recognized yet. Bottomline however, the Cash has been received.
Increase in Receivables = 309,196 - 221,504
= $87,692 million
Increase in Deferred Revenue= 374,730 - 334,358
= $40,372 million
The Cash generated is therefore;
= 939,393 - 87,692 + 40,372
= $892,073
= $892.1 million
I have attached the Financial Statements of Acme Corporation.
