Answer:
$475,000
Explanation:
The amount should be reported as unearned service contract revenues in Ryan's December 31, Year 1, and balance sheet will be the amount that has not expired in year 1 or outstanding service contracts that will expire in year 2 to year 4. Therefore,
Year 2 + Year 3 + Year 4 = $150,000 + 225,000 + 100,000 = $475,000 should be reported as unearned service contract revenues.
Answer:
Secondary data technique is not perfect for marketing research
Explanation:
The secondary method is useful, as it is difficult to perform or conduct a new survey. More, importantly using secondary data technique in marketing research is not an ideal method, because the data may be inaccurate or outdated. The pharmaceutical company was performing marketing research, and usually, the availability of new marketing data is challenging to get from secondary sources.
Answer:
The WACC is 10.93%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital stricture may be formed of the following components namely debt, preferred stock and common stock. The WACC assigns the weights to each of these components based on the finance provided by each of the above components as a proportion of total capital structure or total assets.
The WACC is calculated by taking the market value of each component. The formula for WACC is as follows,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- r represents the cost of each component
- D, P and E represents debt, preferred stock and Common stock respectively.
- We take after tax cost of debt. So we multiply rD with (1-tax rate)
Debt = 377000 * 106.5% = $401505
Preferred stock = 6850 * 90.50 = $619925
Common stock = 27500 * 70 = $1925000
Total assets = 401505 + 619925 + 1925000 = $2946430
WACC = 401505/2946430 * 7.81% * (1-0.35) + 619925/2946430 * 6.9% +
1925000/2946430 * 13.45%
WACC = 0.1093 or 10.93%
Answer: open listing
Explanation:
Open listing simply refers to situation whereby a property owner uses several real estate agents when he or she wants to sell a property so that there will be many potential buyers.
In this situation, the agent who eventually brings the person who purchases the property will collects the commission assigned to the property.
Answer: $117,000
Explanation:
So we are to calculate the Raw Materials purchased during the year.
Logically speaking the following should hold,
Raw materials purchased during the year + beginning raw materials = ending Raw materials + Raw materials used
Agreeing on that and rearranging the formula we will have,
Raw Material purchased during the year = Raw Material used during the year + Ending Raw Material Inventory - Opening Raw Material Inventory
Slotting in the figures we will then have,
Raw Material purchased during the year = 114,000 + 56,000 - 53,000
= $117,000
Raw materials purchased during the year amount to $117,000.
