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2 years ago

A company purchased a 12 month insurance policy on October 1 for $1,200. On the December 31 annual financial statements, ______.

Business

1 answer:

Naily [24]2 years ago

7 0

Answer:

$300 is reported as a expense

Explanation:

and $900 is reported as an asset hope this helps you :) god loves you :)

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You are an employee of a U.S. firm that produces personal computers in Thailand and then exports them to the United States and o

qaws [65]

The U.S. government decides to impose punitive 100 percent ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U.S. exports to Thailand-Such targeted trade barriers can often be easily circumvented without having to locate production facilities in an expensive country like the U.S.

Explanation:

As long as their is no change in the manufacturing requirements the company can consider Malaysia or Hong Kong for production of Personal computers.

Lowering the price of the goods but if you guarantee quality good at a better price then all the trade markets will vie for your attention

Also exporting the personal computer to Canada or nearby market can be an alternative option

Hence such targeted trade barriers can often be easily circumvented without having to locate production facilities in an expensive country like the U.S.

6 0

2 years ago

A company has a $20 million portfolio with a beta of 1.2. It would like to use futures contracts on a stock index to hedge its r

11111nata11111 [884]

Answer: 88.89 or 89

Explanation: Futures contract refers to a legal binding which obligates a buyer and seller to transact about a commodity, good, security or services at a predetermined price but goods are delivered or paid for in the future.

Given the following ;

Portfolio value(p) = $20million

Portfolio Beta (b) = 1.2

Index price (i) = 1080

Multiplier = 250

Future value(A) = index price × multiplier

Future value(A) = 1080 × 250 = 270000

Number of contracts (N) = (portfolio value × portfolio Beta) ÷ future value

N = ($20,000,000×1.2)÷270000

N = 24000000 ÷×270000

N = 88.8888=88.89

N = 89 (NEAREST whole number)

7 0

2 years ago

Novak Corp. issued 2,000 8%, 9-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1.

miv72 [106K]

Answer:

Part B.

Dr Interest expense ($2,000,000 * 8%) $160,000

Cr Interest payable $160,000

Part C.

Dr Interest payable $160,000

Cr Cash $160,000

Explanation:

Part A.

On Jan 1, 2022, the bond issued would be recorded as under:

Dr Cash (2000 bonds * $1000 par value) $2,000,000

Cr Bonds payables $2,000,000

Part B.

On Dec 31, 2022, the interest accrued would be recorded as under:

Dr Interest expense ($2,000,000 * 8%) $160,000

Cr Interest payable $160,000

Part C.

On Jan 1, 2023, the payment of the interest would be recorded as under:

Dr Interest payable $160,000

Cr Cash $160,000

7 0

2 years ago

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such

olganol [36]

Answer:

True

Explanation:

As in the lean philosophy the production is based on specific customer demands, there are chances that when the order is received then the inventory required is not present and that the inventory is not held in hand.

Whereas in the traditional philosophy the production is based on the principle of budgets and sales forecast, accordingly the sales keeps on moving and the inventory is also held in hand prior to confirmation of order from customers.

Since there is no planning before the order is received from customers under lean, in emergency cases, or scarcity of resources, the inventory will fall short, and acquisition of inventory would not be easy.

6 0

2 years ago

A consumer has $140 in monthly income to be spent on two goods Z and B. The price of good Z (Pz) is $6.00. The Marginal Rate

romanna [79]

Answer:

3 and 46.67 units

Explanation:

The formula and the computations are shown below:

The price of good B is

= {The price of good Z (Pz)} ÷ {Marginal rate of transformation}

= {$6} ÷ {2}

= 3

Now the number of units to be purchased for all income used is

= (Monthly income spent on two goods) ÷ (price of good B)

= ($140) ÷ (3)

= 46.67 units

By applying the above formula we can find out the price of good B and the number of units purchased

5 0

2 years ago