Answer:
The correct answer is B) Buyer Intentions Method also known as <em>Consumers' Buyer Plan.</em>
Explanation:
This plan involves approaching customers to elicit information from them about their likelihood to make purchases during a particular period. It is most effective when the number of customers is small relative to the ability of the business to reach out to them.
A sales forecast based on this method has several demerits such as:
- The customers may change their minds anytime without consultation with the business
- It is an uneconomical way to do a forecast when the client base is large
- Predicting sales over the long-run using this method is statistically impossible
It has a few merits in that the information is obtained first hand from the consumers or buyer and the real intentions of the buyers at the time of collecting information is known.
Cheers!
Answer:
The amount of interest accrued as of December 31, 2016 is $10,980.
Explanation:
On December 31, two months interest is accrued and this is equivalent to 61 days (30 days for November and 31 days for December).
Calculation of Interest accrued is as follows ;
Interest accrued = $360,000 × 6% × 61/120
= $10,980
Answer and Explanation:
The Journal entry with their narrations is shown below:-
1. Cash Dr, $43,000
To Notes Payable $43,000
(Being Cash is recorded)
2. Interest expenses Dr, $215
($43,000 × 6% ÷ 12)
Notes payable Dr, $616.31
To Cash $831.31
(Being Interest expenses is recorded)
3. Interest expenses Dr, $211.92
($43,000 - $616.31) × 6% ÷ 12)
Notes payable Dr, $619.39
To Cash $831.31
(Being Interest expenses is recorded)
Therefore we have recorded the issuance of the installment note payable and the first two monthly payments.
Answer:
178,750 average shares
Explanation:
The computation of the maximum permitted sale is shown below:
But before that we need to find out the total volume which is
= nov 14 trading volume + nov 7 trading volume + oct 31 trading volume + oct 24 trading volume
= 185,000 shares + 165,000 shares + 175,000 shares + 190,000 shares
= 715,000 shares
Now
maximum permitted sale is
= 715,000 shares ÷ 4
= 178,750 average shares
Answer:
The value of this firm to shareholders is $70240
Explanation:
Using expected value approach, the value of the firm can be computed as :
(Optimistic value*its probability)+(pessimistic value*its probability)
optimistic value=$139000 and its probability is 68%=0.68
Pessimistic value=$121000 and its probability is 1-0.68=0.32
Expected value=($139000*0.68)+($121000*0.32)
=$133240
However, the value to shareholders is the expected value of the firm less debt of $63000
Equity value=$133240-$63000
=$70240
