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2 years ago

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In 2010, Roso Carlson Company had net credit sales of $750,000. On January 1, 2010, Allowance for Doubtful Accounts had a credit

balance of $18,000. During 2010, $30,000 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2010? a. $10,050. b. $10,500. c. $22,500. d. $40,500.

1 answer:

kati45 [8]2 years ago

3 0

Answer:

0987654 im

Explanation:

just doing this for points

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Peavey enterprises purchased a depreciable asset for $28,500 on april 1, year 1. the asset will be depreciated using the straigh

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<span>Answer is $17,325. Since the salvage value of the asset after its four years of useful life is $3,300 while its current purchase value is $28,500; we need to depreciate the difference over 4 years. That us $25,200 to be depreciated over 4 years using a straight line method. At December 31 of year 3, the asset will be 2.75 years old(2 years, 9 months). Hence the accumulated depreciation is $25,500*(2.75/4). This is $17,325.</span>

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2 years ago

Work in process inventory on December 31 is $42,000. Work in process inventory decreased by 40% during the year. Total manufactu

jok3333 [9.3K]

Answer:

c) $288,000

Explanation:

The computation of the cost of goods manufactured is shown below:

Cost of goods manufactured = Opening balance of Work in process + Manufacturing cost - Ending balance of Work in process

where,

Opening balance of Work in process equal to

= $42,000 × 100 ÷ 40

= $70,000

So, the cost of goods manufactured is

= $70,000 + $260,000 - $42,000

= $288,000

7 0

2 years ago

Jeff Kaufmann’s machine shop sells a variety of machines for job shops. A customer wants to purchase a model XPO2 drilling machi

agasfer [191]

Answer:

a) If Jeff purchases today, then he can expect to earn $30,000.

b) If Jeff decides to wait and try to purchase tomorrow, his expected profit is $22,000.

c) If Jeff decides to wait even more and buy the day after tomorrow, then his expected profit is $8,400.

d) Three days form now there will be no XPO2 available, so his profit is $0.

e) Jeff should purchase the XPO2 today and earn $30,000.

Explanation:

selling price $180,000

buys today, then profit = $180,000 - $150,000 = $30,000
buys tomorrow, then profit = $180,000 - $125,000 = $55,000 x 40% = $22,000
if he buys the day after tomorrow, then profit = $180,000 - $110,000 = $70,000 x 40% x 30% = $8,400
if he waits 3 days, then his profit is $0 because there are no XPO2s available.

7 0

2 years ago

Your uncle holds just one stock, East Coast Bank (ECB). You agree that this stock is relatively safe, but you want to demonstrat

g100num [7]

Complete question:

Assume that your uncle holds just one stock, East Coast Bank (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, but you want to demonstrate that his risk would be even lower if he were more diversified. You obtain the following returns data for West Coast Bank (WCB). Both banks have had less variability than most other stocks over the past 5 years.

Year ECB WCB

2004 40.00% 40.00%

2005 -10.00% 15.00%

2006 35.00% -5.00%

2007 -5.00% -10.00%

2008 15.00% 35.00%

a. What is the expected return and risk of each stock?

b. Measured by the standard deviation of returns, by how much would your uncle's risk have been reduced if he had held a portfolio consisting of 60% in ECB and the remainder in WCB? In other words, what is the difference between portfolio's standard deviation and weighted average of components' standard deviations? (Hint: check the example on page 11-12 on my note).

Solution:

The estimated return of the stock is the average profit.

So the average of ECB is (40-10+35-5+15)/5

= $\frac{75 percent}{5}$

= 15% expected return

WCB expected return = 40+15-5-10+35

= $\frac{75 percent}{5}$

= 15%

They've had the same planned return.

This is generally defined in the Greek letter Mu, (U) A weighted average may also be used to calculate portfolio volatility.

Standard deviation of ECB is $\sqrt{{ sum [(x-U)^2]/5}}$

so for ECB:

$(40-15)^2$ = $25^2$ =6.25%

$(-10-15)^2$ = $-35^2$ = 0.1225

$(35-15)^2$ = $20^2$ = 0.04

$(-5-15)^2$ = $-20^2$ = 0.04

$(15-15)^2$ =0

now 0.0625+0.1225+0.04+0.04+0=0.265

stdev= $\sqrt{(0.265/5)}$ = 0.23

So WCB is the same except in a different order to make things quick I'm only going to add the median again WCB=0.23

Then the 60/40 portfolio will be the "weighted average" of the returns.

portfolio returns

2004: (60%*40%)+(40%*40%) = 40%

2005: (60%*-10%)+(40%*15%) = 0%

2006: (60%*35%)+(40%*-5%) = 19%

2007: (60%*-5%)+(40%*-10%) = -7%

2008:(60%*15%)+(40%*35%) = 23%

we have an average return of (40+19-7+23)/5 = 75/5 =15%

The estimated return of all combined stocks is a better way to do so.

we knew they both had expected returns of 15% so we can say

(60%*15%)+(40%*15%)=15% so the portfolio has an expected return of 15%

Now we do the standard deviation for the whole portfolio and get

$(40-15)^2$ = $25^2$ =6.25%

$(0-15)^2$ = - $25^2$ =6.25%

$(19-15)^2$ = $4^2$ = 0.16%

$(-7-15)^2$ = $-22^2$ = -4.84%

$(23-15)^2$ = $8^2$ = 0.64%

now add them up and get 9.78%

$\sqrt{(9.78%/5)}$ = 13.98%

Therefore, the normal portfolio variance is 13.98 per cent and the predicted portfolio return is 15 per cent.

Every stock has a standard deviation of 23 per cent and an average return of 15 per cent, meaning that the fund has the same estimated return but with less standard deviation. This ensures that the same gain is less costly. It's stronger than any of these products.

5 0

2 years ago

Benjamin works at an automobile manufacturing company. The country in which the company operates is facing a heavy trade deficit

klasskru [66]

Answer:

The correct answer would be Command Economic System.

Explanation:

Economic systems define the control of the government on the economic resources and the institutions of the country. There are four major economic systems. One is Traditional Economic System, other is Command Economic System, third one is Market Economic System and the fourth one is Mixed Economic System.

Command Economic System is an economic system in which the central powers are with the government. Government regulate the decisions of economy as well as of the institutions. In this type of economy, the government dictates the companies to do whatever the government says and thinks is the best for the country's economy.

So in this question, government thinks that the best way to overcome the trade deficit is to increase the exports of the Sedan cars at a competitive price in the international market without seeking any advice from the automobile manufacturers. This type of economic system is called the Command Economic System.

7 0

2 years ago