Answer:
$30,000
Explanation:
In this question, the matching account principle is used which means the total revenue is matched with the total expenses in a given year.
The computation of the warranty expense is shown below:
= Number of selling units × average unit sold per unit
= 2,000 unit × $15 per unit
= $30,000
The whole amount $30,000 should be recorded as warranty expense
Answer:
The answer is: C) decrease; increase
Explanation:
Currency appreciation occurs when the value of one currency increases in relation to another currency. In this case, country A´s currency will gain value against the currency of countries B and C (C´s currency is pegged to B´s currency).
This means that products from country A will be more expensive than products from countries B and C, which should lower country A´s exports and increase its imports.
Explanation:
The calculation is shown below:
a. The proceeds from the short sale (net of commission) is
= Number of shares short sold x (price of short sale - commission paid per share)
= 100 shares x ($27.70 - 0.25)
= $2,745
b. The dividend payment is
= Number of shares × dividend per share
= 100 shares × $3.30
= $330
c. Value of an account is
= Proceeds from short sale, commission net - dividend paid - cost including commission
where,
Cost including commission is
= Number of shares short sold x (price of buying stock + commission paid per share)
= 100 shares × ($22 + 0.25)
= $2,225
So, the value of an account is
= $2,745 - $330 - $2,225
= $190
Answer:
SF7.37
Explanation:
PV of cash flow is calculated using the formula
1-(1+r)^-n/r=1-(1-0.15)^5/0.15=1-(0.75)^5/0.15=1-0.237/0.15=5.085
So pv=5.085×4.4=SF
20.3385million
Using interest parity
1+ic/1+ib =Fo/So
Counter country is US while home country is in
swiss
1+0.05/1.04=fo/1.09
Fo=1.09×1.05/1.04=1.1
So expected PV=20.3385×1.1=SF22.37235million
Profit=23.37235-15=SF7.37
Answer:
short, innovation
Explanation:
Manufacturing of short product cycle have the innovation requires for competency compare to those companies that manufacture on long product cycle.
It should be noted that Companies that manufacture products with a very short product life cycle have innovation as their core competency.
