Answer: $0
Explanation:
Forward contracts get their value from the cost and on December 1, there was no cost to Curtis as he Curtis had just signed the contract.
This means that the amount that should be recorded for the Forward Contract should be $0. Even though the contract is valued at $0, it will still need to be credited against the amount to be received to at least recognize that a forward contract was entered into.
No it is not good in nature!!!!!
Answer:
Option (D) is correct.
Explanation:
1.We use the formula:
where
A=future value
P=present value
r=rate of interest
n=time period.
![A=1,060[(1.12)^{2}+(1.12)^{1} + 1]](https://tex.z-dn.net/?f=A%3D1%2C060%5B%281.12%29%5E%7B2%7D%2B%281.12%29%5E%7B1%7D%20%2B%201%5D)
= 1,060 [1.2544 + 1.12 + 1]
= 1,060 × 3.3744
= $3,576.864
Therefore, the amount of $3,576.864 will Ashley have to buy a new LCD TV at the end of three years.
(b) Future value of annuity due = Future value of annuity × (1 + interest rate)
= $3,576.86(1 + 0.12)
= $3,576.86 × 1.12
= $4,006.08
She will save around $4,006.08
Answer:
The firm's receivable turnover is 20 times
Explanation:
The computation is shown below:
Accounts receivable turnover ratio = (Credit sales ÷ average accounts) receivable
where,
Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2
= ($0 + $50,000) ÷ 2
= $25,000
And, the net credit sale is $500,000
Now put these values to the above formula
So, the answer would be equal to
= ($500,000 ÷ $25,000)
= 20 times
And, the average collection period in days = Total number of days in a year ÷ accounts receivable turnover ratio
= 360 days ÷ 20
= 18 days
