The correct answer is b. To encourage early payment of invoices. purchase discounts are provided to encourage buyers to make early payments, benefiting both the buyer and the seller by improving cash flow and reducing accounts receivable.
Purchase discounts are offered by manufacturers or wholesalers as an incentive for buyers to make early payment of their invoices. It is a reduction in the purchase price granted to the buyer if the payment is made within a specified time period, typically referred to as the discount period.
By offering purchase discounts, suppliers aim to improve their cash flow by accelerating the collection of accounts receivable. It encourages buyers to pay their invoices promptly, which helps the supplier to reduce their accounts receivable balance and minimize the risk of late or non-payment.
The terms of a purchase discount are usually expressed in the form of "x/y, net z," where x represents the discount percentage, y represents the number of days within which the discount is available, and z represents the total payment period after which the invoice becomes due in full.
For example, a common purchase discount term is "2/10, net 30," which means that a 2% discount is available if the payment is made within 10 days, and the full payment is due within 30 days.
Learn more about purchase here:
https://brainly.com/question/22281125
#SPJ11
suppose a super 9 hotel has annual fixed costs applicable to its rooms of $1.0 million for its 300-room hotel. average daily room rents are $60 per room and average variable costs are $10 for each room rented. it operates 365 days per year. if the hotel is one-half full throughout the entire year, what is the amount of net income for one year? select one:
a. $5,475,000
b. $5,570,000
c. $1,737,500
d. $4,475,000
For the Super 9 hotel, the net income for one year can be calculated as $6,570,000 - $1,000,000 - $1,095,000 = $4,475,000.
Therefore, the correct answer is d. $4,475,000.
To calculate the net income for one year for the Super 9 hotel, we need to consider the fixed costs, variable costs, and revenue.
The fixed costs applicable to the rooms are given as $1.0 million for the 300-room hotel. This means that regardless of the occupancy rate, the hotel incurs $1.0 million in fixed costs.
The average daily room rent is $60 per room, and the average variable cost is $10 for each room rented. Since the hotel operates 365 days per year, we can calculate the annual revenue and variable costs.
The annual revenue can be calculated by multiplying the average daily room rent by the number of rooms and the number of days in a year. So, the annual revenue is $60 * 300 * 365 = $6,570,000.
The annual variable costs can be calculated by multiplying the average variable cost per room by the number of rooms and the number of days in a year. So, the annual variable costs are $10 * 300 * 365 = $1,095,000.
Now, let's calculate the net income. Net income is equal to revenue minus fixed costs minus variable costs.
For the Super 9 hotel, the net income for one year can be calculated as $6,570,000 - $1,000,000 - $1,095,000 = $4,475,000.
Therefore, the correct answer is d. $4,475,000.
Know more about net income here:
https://brainly.com/question/32614743
#SPJ11
Problem 1: Current (2021) PCI (atlas method) of Bangladesh is $2250. Bangladesh is expected to maintain 7.0% growth in GDP on an average in the coming years since 2020. Average population growth rate is expected to be 1.1% during this time. a) What would be average growth rate of Per capita income? b) In which year Bangladesh will be an upper middle-income country? (threshold is $4096 ) c) How long it will take per capita income to be doubled? d) How long it will take per capita income to be trebled? (Show derivation/calculation for each part)
a) Average growth rate of Per capita income will be 7.0%-1.1% = 5.9% per year.
b) For Bangladesh to become an upper-middle-income country, its per capita income should be more than $4096.Current per capita income of Bangladesh = $2250
Let us assume per capita income will increase by 5.9% per year.
When the per capita income of Bangladesh is $4096, we will have:4109.76 = 2250(1 + 0.059)n
Where n is the number of years to reach $4096.
Solve for n:1.8299 = (1 + 0.059)nln1.8299 = n ln1.059n = ln1.8299/ln1.059n ≈ 22 years after 2021, which means Bangladesh will be an upper-middle-income country in 2043.
c) How long it will take per capita income to be doubled?
In how many years will the per capita income be doubled when the average growth rate of per capita income is 5.9% per year?Per capita income doubles after dividing the doubling time.
Thus, we have:2 = (1 + 0.059)tln
2 = tln(1.059)t
= ln2/ln(1.059)t ≈ 11.7
years after 2021.
d) How long it will take per capita income to be trebled?
Per capita income trebles after dividing the tripling time. Thus, we have:
3 = (1 + 0.059)tln
3 = tln(1.059)t
= ln3/ln(1.059)t ≈ 18.8
years after 2021.
To know more about capita visit :
https://brainly.com/question/31650362
#SPJ11
which of the following actions may help a less-developed country (ldc) escape from the vicious circle of poverty? check all that apply. setting the currency exchange rate above the market-determined exchange rate technological help from industrially advanced countries restrictions on foreign private investment aid from wealthy countries loans from international organizations, wealthy countries, and private banks in the following table, match each description to the appropriate international aid and loan agency. description international aid and loan agency the u.s. agency responsible for distributing u.s. development aid and making bilateral loans to foreign countries the multilateral lending agency that makes short-term conditional low-interest loans to developing countries experiencing financial distress the multilateral lending agency that makes long-term, low-interest loans to ldcs to finance infrastructure projects
The actions that may help a less-developed country (LDC) escape from the vicious circle of poverty are b) Technological help from industrially advanced countries, d) Aid from wealthy countries, e) Loans from international organizations, wealthy countries, and private banks. The correct options are b), d), and e).
To help a less-developed country (LDC) escape from the vicious circle of poverty, several actions can be beneficial. Technological help from industrially advanced countries (option b) can facilitate the transfer of knowledge, innovation, and improved production techniques, leading to increased productivity and economic growth.
Aid from wealthy countries (option d) can provide financial resources for infrastructure development, education, healthcare, and poverty reduction initiatives.
Loans from international organizations, wealthy countries, and private banks (option e) can offer additional capital for investments in key sectors, stimulating economic development.
On the other hand, setting the currency exchange rate above the market-determined exchange rate (option a) can hinder competitiveness and discourage international trade, while restrictions on foreign private investment (option c) can limit access to capital, technology, and expertise. Thus, the correct answers are b), d), and e).
To know more about less-developed country:
https://brainly.com/question/28489731
#SPJ4
last year lana's income was $56300, the number of times she dined out was 60 and the average price of a meal was $20. this year her income totaled $58800, she dined out a total of 64 times and the average price of a meal was $23. what is lana's income elasticity of demand for dining out?
we use the formula for income elasticity of demand, which is the percentage change in quantity demanded divided by the percentage change in income. By plugging in the values we calculated earlier, we can find Lana's income elasticity of demand for dining out.
To find Lana's income elasticity of demand for dining out, we need to calculate the percentage change in quantity demanded and the percentage change in income. First, we calculate the percentage change in quantity demanded by subtracting the old quantity demanded (60) from the new quantity demanded (64), and then dividing the result by the old quantity demanded (60). This gives us a percentage change in quantity demanded of (64 - 60) / 60.
Next, we calculate the percentage change in income by subtracting the old income ($56300) from the new income ($58800), and then dividing the result by the old income ($56300). This gives us a percentage change in income of ($58800 - $56300) / $56300.
To know more about demand visit:
https://brainly.com/question/33833381
#SPJ11
In a simple barter economy, each trader face the problem of finding a trading partner with preferences and endowments reciprocal to his own. This has come to be known as the problem of finding a mutual: coincidence of wants coincidence of supplies discordance of supplies discordance of wants Question 5 money is an asset for its holder but not a liability of, or financial claim against, anyone else. Inside Outside Mutual Circulating
The correct answer is inside.
In a simple barter economy, each trader face the problem of finding a trading partner with preferences and endowments reciprocal to his own. This has come to be known as the problem of finding a mutual "coincidence of wants."
Money is an asset for its holder but not a liability of, or financial claim against, anyone else.
What is money?
Money is something that people use to purchase products and services from others. Money serves as a medium of exchange, a measure of value, and a store of wealth.
Money has become the foundation for trade and business as it enables the exchange of goods and services without requiring a coincidence of wants.
A holder of money is considered an asset because the value of the money increases over time due to inflation.
Because the individual is the owner of the money, it does not represent a liability or financial claim against anyone else.
Thus, it is not an asset for anyone outside the holder and does not have value to them.
Therefore, the correct answer is inside.
To know more about economy visit:
https://brainly.com/question/18461883
#SPJ11
Timothy projects its next sales next year to be $4 million and expects to earn 5% of that amount in taxes. The firm is currently projecting its financial needs based on the following projections: (10) 1. Current assets will equal 20% of sales and fixed assets will remain at their current level of $1 million. 2. Common equity is currently. 8 million $ and the firm pays out half its earning in dividends. 3. The firm had short term payables and trade credit that normally equal 10% of sales and it has no long-term debt outstanding.
Timothy projects its next sales next year to be $4 million and expects to earn 5% of that amount in taxes. The firm is currently projecting its financial needs based on the following projections: Current assets are expected to equal 20% of sales, and fixed assets are expected to remain at their current level of $1 million. The company's equity is currently $8 million, and half of its earnings are paid out as dividends.
Short-term payables and trade credit usually amount to 10% of sales, and the company has no long-term debt outstanding.
Timothy's current assets are expected to be 20% of the projected $4 million sales or $800,000.
The firm's fixed assets are expected to remain at $1 million, resulting in total assets of $1,800,000.
As a result, total liabilities must be calculated. The company has no long-term debt, but it does have short-term
payables and trade credit that typically account for 10% of sales.
This implies that short-term payables and trade credit will be $400,000.
We will compute the common equity as follows:
Earnings that have not been distributed = Earnings - Dividends paidOut = $4,000,000 × 0.95 = $3,800,000.
Dividends paid = 0.5 × $3,800,000 = $1,900,000.
Earnings that have not been distributed = $3,800,000 - $1,900,000 = $1,900,000.
Common equity = Current equity + Earnings that have not been distributed
Common equity = $8,000,000 + $1,900,000 = $9,900,000
Total liabilities = Total assets - Common equity
Total liabilities = $1,800,000 - $9,900,000 = -$8,100,000.
This indicates that Timothy has negative total liabilities. Therefore, based on the provided information, it is not feasible to calculate the firm's financial needs.
To know more about dividends visit :-
https://brainly.com/question/33428821
#SPJ11
In developing the pro forma income statement we follow four important steps: 1) compute other expenses, 2) determine a production schedule. 3) establish a sales projection, 4) determine profit by completing the actual pro forma statement. What. is the correct order for these four steps? 1, 2,3,4 4,3,2,1 2,1,3,4 3,2,1,4 Question 4 (1 point) In the development of the pro forma financial statements, the second step in the process is the development of the: cash budget. pro forma balance sheet. pro forma income statement. capital budget.
Correct order for the four steps in developing the pro forma income statement: 2, 1, 3, 4.
Step 1: Determine a production schedule.
Step 2: Compute other expenses.
Step 3: Establish a sales projection.
Step 4: Determine profit by completing the actual pro forma statement.
Explanation:
1) Determine a production schedule: This step involves estimating the amount of goods or services that will be produced during a specific period. It helps in forecasting the costs and expenses associated with the production process.
2) Compute other expenses: Once the production schedule is determined, other expenses such as raw material costs, labor costs, overhead costs, and any other relevant expenses need to be calculated. These expenses are essential for accurately estimating the overall costs of production.
3) Establish a sales projection: In this step, sales forecasts are made based on market research, historical data, and other relevant factors. The sales projection provides an estimate of the revenue that the company expects to generate from the sale of its products or services.
4) Determine profit by completing the actual pro forma statement: After the production schedule, other expenses, and sales projection are determined, the pro forma income statement can be prepared. It includes the estimated revenue, costs, and expenses, allowing for the calculation of the projected profit. This statement helps in assessing the financial performance and viability of the business.
In the development of the pro forma financial statements, the second step in the process is the development of the pro forma balance sheet.
For more such questions on income, click on:
https://brainly.com/question/30157678
#SPJ8
the two businesses involved in an EDI transaction are called
transactional partners ?
Yes, the two businesses involved in an EDI transaction are called transactional partners. EDI (Electronic Data Interchange) is a technology that allows for the exchange of business data between different companies' computer systems.
This technology allows businesses to exchange business documents with other businesses in a standard electronic format, rather than in a paper-based format. Businesses that engage in EDI are known as transactional partners. EDI is a data exchange technology that eliminates the need for paper documents by electronically exchanging data between two or more organizations.
The two businesses involved in an EDI transaction are called transactional partners because they are exchanging data and conducting business together. EDI transactions are commonly used in supply chain management, e-commerce, and other industries that require the exchange of business data between two or more parties.
To know more about transaction visit:
https://brainly.com/question/32761288
#SPJ11
chez fred bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. during 2024, chez fred's credit sales and collections were $116,000 and $131,000, respectively. what was the balance of accounts receivable on january 1, 2024, if $160 in accounts receivable were written off during 2024 and if the allowance account had a balance of $870 on december 31, 2024? multiple choice $31,000 $310 none of these answer choices are correct. $102,160
Using the T-account, the balance of accounts receivable on January 1, 2024, if $160 in accounts receivable were written off during 2024 and if the allowance account had a balance of $870 on December 31, 2024 is C. none of these answer choices are correct.
What is a T-account?A T-account is an accounting tool used to prepare adjusting entries at the end of the accounting period.
Adjusting entries are end-of-the-period journal entries in accordance with the matching principle and the accrual concept of accounting.
Estimated allowance for uncollectible accounts = 1% of ending balance of accounts receivable
Credit sales during 2024 = $116,000
Collections during 2024 = $131,000
Accounts receivable written off during 2024 = $160
T-accounts:
Accounts ReceivableDate Accounts Titles Debit Credit
Jan. 1 Beginning balance $102,160
Dec. 31 Sales Revenue $116,000
Dec. 31 Cash $131,000
Dec. 31 Accounts Receivable $160
Dec. 31 Ending balance $87,000
Allowance for Doubtful AccountsDate Accounts Titles Debit Credit
Dec. 31 Accounts Receivable $160
Dec. 31 Ending balance $870
Ending balance of Accounts Receivable = $87,000 ($870 ÷ 1%)
Thus, the balance of the accounts receivable on January 1, 2024, usiung T-accounts, is $102,160.
Learn more about T-accounts and adjusting entries at brainly.com/question/13933471.
#SPJ4
X Company is thinking about adding a new product line. it is expected that:
|Initial cost|$2,780,000
|Annual cash inflow|$2,540,000
|Annual cash outflows|$2,260,000
|Estimated useful life|10 years
|Salvage value|$4,400,000
|Discount rate|8%
Calculate the net present value of the project.
Do not copy from Chegg and give complete answer with explanation
Net present value (NPV) refers to the difference between the current value of cash inflows and the present value of cash outflows in an investment or a business.
NPV aids investors and analysts in determining the viability of an investment. The formula for calculating NPV can be calculated by subtracting the present value of cash outflows from the present value of cash inflows.
The given values are Initial cost = $2,780,000,
Annual cash inflow = $2,540,000,
Annual cash outflows = $2,260,000,
Estimated useful life = 10 years,
Salvage value = $4,400,000,
Discount rate = 8%.
Calculation of Present Value Factor for 10 years:
PVF = (1+r)-n
r= Discount rate= 8%
n= 10
PVF = (1+0.08)^(-10)
PVF = 0.46319
Calculation of NPV:NPV = PV of Cash Inflows - PV of Cash Outflows
PV of Cash Inflows = Annual cash inflow * PVF * Estimated useful life
PV of Cash Inflows = $2,540,000 * 0.46319 * 10
PV of Cash Inflows = $11,849,225.20
PV of Cash Outflows = Initial cost + Salvage value * PVF
PV of Cash Outflows = $2,780,000 + $4,400,000 * 0.46319
PV of Cash Outflows = $4,335,233.60
NPV = $11,849,225.20 - $4,335,233.60
NPV = $7,513,991.60As the NPV is positive, we can say that the X company should go ahead with the new product line.
The calculated NPV is $7,513,991.60.
To know more about NPV visit:
https://brainly.com/question/32153010
#SPJ11
When using the income approach to measure GDP, the largest share of GDP generally consists of a Labour income b Capital income c Interest income d Indirect taxes e Firms' profits
When measuring GDP using the income approach, corporate profits, sometimes referred to as business profits, typically account for the greatest portion of GDP.
The income generated by enterprises after deducting all costs, such as salaries, interest charges, and taxes, is referred to as a company's profit. This category encapsulates economic entrepreneurship and return on investment. While indirect taxes, interest income, capital income, and labour income all contribute to GDP, business profits often account for the majority of it. This gives a gauge of the value added by the private sector and represents the total profitability and productivity of firms functioning within the economy.
learn more about business here:
https://brainly.com/question/15826771
#SPJ11
a pair of jeans with a selling price of $57 has a markup rate of 50%. find the cost of the pair of jeans?
To find the cost of the pair of jeans, we need to work backwards from the selling price and the markup rate. First, we need to calculate the markup amount. The cost of the pair of jeans is $38.
The markup rate of 50% means that the selling price is 150% of the cost price. To find the markup amount, we can subtract the cost price from the selling price. Markup Amount = Selling Price - Cost PriceGiven that the selling price is $57, we can substitute this value into the equation and solve for the cost price. Markup Amount
= $57 - Cost
PriceWe know that the markup rate is 50%, which means the markup amount is 50% of the cost price:Markup Amount =
0.50 * Cost Price
Now we can equate the two expressions for the markup amount and solve for the cost price:$57 - Cost Price =
0.50 *
Cost PriceSimplifying the equation, we can isolate the cost price by moving the terms involving Cost Price to one side:$57 =
1.50 *
Cost PriceDividing both sides of the equation by 1.50, we can solve for the cost price:Evaluating the division, we find that the cost price of the pair of jeans is $38.In summary, the cost of the pair of jeans is $38.
To know more about price visit:
https://brainly.com/question/11828174
#SPJ11
One of the items on the menu in the Downtown Restaurant is chopped steak. Each of the newly hired and fully trained cooks has his or her own idea about what a chopped steak is, and each prepares it differently. Which of the following four steps in the control process would be the final step of eliminating this problem? Select one: a. Train to follow standards b. Establish standards c. Correct deviations between standards and actual results d. Compare actual results with standards
The final step of eliminating the problem of the newly hired and fully trained cooks having different ideas about what a chopped steak is and preparing it differently would be to compare actual results with standards.
Control is an important step in the management process that ensures that actual activities conform to the company's objectives. The control function serves as the source of feedback to adapt and change the organization's processes to achieve its goals. Control mechanisms help to align the actual performance with the predetermined standard. Control, therefore, has to do with ensuring that the plans made are executed well, and that deviations are corrected promptly. There are four steps in the control process that we need to know: Establish standards Train to follow standards Compare actual results with standards Correct deviations between standards and actual results. To conclude, comparing actual results with standards would be the final step of eliminating this problem of the newly hired and fully trained cooks having different ideas about what a chopped steak is and preparing it differently.
To know more about trained cooks visit:
https://brainly.com/question/13928358
#SPJ11
Which of the following industries would you expect to have, on average, high asset turnover and low profit margin?
A. Hotels
B. Grocery Stores
C. Utilities
D. Oil and Gas extraction
The industry that would have high asset turnover and low profit margin is A. Hotels. The correct option is A.
Asset turnover is the financial ratio that is used to measure how efficiently a company is using its assets to produce revenue.
In simple terms, it measures how much revenue is generated from each dollar of assets a company owns. High asset turnover means that the company is using its assets more efficiently.
On the other hand, profit margin is a financial ratio that is used to measure a company's profitability. It measures how much profit a company makes on each dollar of sales.
Low profit margin indicates that the company is making less profit for each dollar of sales it generates. In the hotel industry, companies invest heavily in assets such as property, furniture, and equipment to provide customers with comfortable accommodations and amenities.
Since hotel rooms are typically booked on a daily basis, hotels need to ensure that their assets are being utilized efficiently.
Therefore, they need to maintain high asset turnover rates. However, due to high operating costs such as maintenance, staffing, and utilities, hotels usually have low profit margins. Hence, the hotel industry is an example of an industry that has high asset turnover and low profit margins.
For more such questions on profit margin
https://brainly.com/question/28180283
#SPJ8
The money multiplier is \( 3.0 \) and the currency drain ratio is \( 0.2 \). What is the desired reserve ratio? The desired reserve ratio is \( \gg> \) Answer to 1 decimal place.
Money multiplier is defined as the ratio of the change in the money supply to the change in the monetary base. The monetary base is made up of currency held by the public and reserves held by depository institutions.
It is the maximum amount of money that the banking system can generate. It is calculated using the formula given below, Money Multiplier = 1 / Reserve Ratio Here, Reserve Ratio is the fraction of deposits that banks hold in reserve. By manipulating reserve ratios, central banks can alter the money supply. Currency Drain Ratio: Currency drain ratio is the fraction of deposits that is held in the form of currency.
It is the proportion of the monetary base that is held by the public in the form of currency. It is calculated as follows, Currency Drain Ratio = Currency / Deposits Where Currency refers to the amount of currency in circulation, and Deposits refer to the deposits held in banks. Desired Reserve Ratio: We can calculate the desired reserve ratio using the Money multiplier and the Currency Drain Ratio.
To know more about multiplier visit:
https://brainly.com/question/30875464
#SPJ11
3. Identify the toy retailer's new business model. Do you believe it will keep the new company in business? Why or why not?
The toy retailer's new business model is the creation of smaller stores, which offer better customer service and a more personalized shopping experience.
This model was a shift from the company's previous model, which focused on large, warehouse-style stores with a large selection of toys. The company believes that the new model will allow them to compete better with online retailers and other brick-and-mortar stores.
Do I believe the new business model will keep the new company in business?Yes, I do. This is because the new business model is centered on providing excellent customer service and offering a more personalized shopping experience. These are both things that online retailers cannot match, which is a key advantage for brick-and-mortar stores. Additionally, by focusing on smaller stores, the company is able to reduce its overhead costs, which should help to make it more financially stable in the long run.
The toy retailer's new business model is the creation of smaller stores, which offer better customer service and a more personalized shopping experience. Why I believe it will keep the new company in business is that the new business model is centered on providing excellent customer service and offering a more personalized shopping experience. Also, by focusing on smaller stores, the company is able to reduce its overhead costs, which should help to make it more financially stable in the long run.
Learn more about personalized shopping experience: https://brainly.com/question/31602978
#SPJ11
Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence?
A. Section 1040 exchange
B. Section 1035 exchange
C. Nonforfeiture Option
D. Spendthrift Option
The correct answer is B. Section 1035 exchange. The Section 1035 exchange applies specifically to life insurance policies and certain other types of insurance contracts, allowing for a tax-free transfer between policies.
A Section 1035 exchange refers to a provision in the U.S. tax code that allows for the replacement of one life insurance policy with another life insurance policy without incurring immediate tax consequences. This provision enables policyholders to transfer the cash value or benefits from an existing life insurance policy to a new policy without being subject to taxation on the accumulated gains or benefits.
By utilizing a Section 1035 exchange, policyholders can effectively postpone the tax consequences that would otherwise be triggered by surrendering or cashing out an existing policy. Instead of receiving the cash value directly, the funds are transferred directly from one policy to another, preserving the tax-deferred status of the accumulated value.
It's important to note that the Section 1035 exchange applies specifically to life insurance policies and certain other types of insurance contracts, allowing for a tax-free transfer between policies. This provision provides policyholders with flexibility in managing their life insurance coverage and can be beneficial when there is a need to update or modify their insurance needs without incurring immediate tax liabilities.
To learn more about, tax-free transfer, click here, https://brainly.com/question/30734432
#SPJ11
Presented below is information related to Free Corporation: Common Stock, $1 par. $2,600,000 Paid-in Capital in Excess of Par-C/S 330,000 Preferred 81/2% Stock, $50 par. 1,200,000 Paid-in Capital in Excess of Par-P/S 240,000 Retained Eamings. 1,000,000 Accumulated Other Comprehensive Income (Unrealized Losses)......100,000 Treasury Stock (at cost) 90,000 The total stockholders' equity of Free Corporation is a. $5,180,000. b. $5,270,000. c. $5,300,000. d. $5,510,000. e. None of the above
Option (e), The total stockholders' equity of Free Corporation can be calculated by summing up the common stock, preferred stock, paid-in capital in excess of par, retained earnings, accumulated other comprehensive income, and deducting treasury stock.
In this case, the calculation would be as follows:
Common Stock, $1 par: $2,600,000
Paid-in Capital in Excess of Par-C/S: $330,000
Preferred 81/2% Stock, $50 par: $1,200,000
Paid-in Capital in Excess of Par-P/S: $240,000
Retained Earnings: $1,000,000
Accumulated Other Comprehensive Income (Unrealized Losses): $100,000
Treasury Stock (at cost): $90,000
Total Stockholders' Equity = (Common Stock + Paid-in Capital in Excess of Par-C/S + Preferred Stock + Paid-in Capital in Excess of Par-P/S + Retained Earnings + Accumulated Other Comprehensive Income) - Treasury Stock
Total Stockholders' Equity = ($2,600,000 + $330,000 + $1,200,000 + $240,000 + $1,000,000 + $100,000) - $90,000
Total Stockholders' Equity = $5,480,000 - $90,000
Total Stockholders' Equity = $5,390,000
Therefore, the correct answer is e. None of the above. The total stockholders' equity of Free Corporation is $5,390,000.
Learn more about Retained Earnings: https://brainly.com/question/14529006
#SPJ11
What is the NPV of a project that costs $1,500,000 and generates 120,000/year forever if the discount rate is 7%?
What is the PV of receiving 2,000/year starting in 3 years going for 16 years if the discount rate is 11%?
A project will provide in 3 years either $8,000 with 20% probability, $13,000 with a 30% probability, $18,000 with a 40% probability, and $45,000 with a 10% probability. Given a 5% discount rate, what is its expected PV?
The NPV (Net Present Value) of a project can be calculated by subtracting the initial cost from the present value of future cash flows. In this case, the project costs $1,500,000 and generates $120,000 per year indefinitely.
To calculate the present value of the cash flows, we need to use the discount rate of 7%. The formula for calculating PV is
PV = CF / (1 + r)^n,
where CF is the cash flow, r is the discount rate, and n is the number of years. So, the PV of the cash flows is $120,000 / (0.07) = $1,714,285.71.
Therefore, the NPV of the project is $1,714,285.71 - $1,500,000 = $214,285.71.
To calculate the PV of receiving $2,000 per year starting in 3 years for 16 years, we use the discount rate of 11%. The formula remains the same:
PV = CF / (1 + r)^n.
Plugging in the values, we get PV = $2,000 / (1 + 0.11)^3 = $1,392.69.
Since the cash flow is the same for 16 years, we multiply this value by 16 to get the total PV: $1,392.69 * 16 = $22,283.04.
For the project with different probabilities, we need to calculate the expected PV. First, calculate the PV for each cash flow using the formula
PV = CF / (1 + r)^n.
Then multiply each PV by the respective probability.
Finally, sum up all the expected PVs to get the total expected PV.
The expected PV is $8,000 * 0.2 + $13,000 * 0.3 + $18,000 * 0.4 + $45,000 * 0.1 = $13,200.
So, the expected PV of the project is $13,200.
To know more about generates visit :
https://brainly.com/question/12841996
#SPJ11
What elements are used to track influencer marketing campaigns in real-time? A> Campaigns are not measured in real-time. B> Sales lift is the primary elements tracked C> The increase in social media followers is the main variable that can be tracked. D> Campaign hashtags and campaign account tags are used.
The elements used to track influencer marketing campaigns in real-time are campaign hashtags and campaign account tags. These tags allow you to track engagement, reach, and user-generated content.
Influencer marketing campaigns are an excellent way to get your product or service in front of a new audience. They involve partnering with social media users with a large following to promote your brand.
To track influencer marketing campaigns in real-time, the following elements are used:
1. Campaign hashtags: These are unique hashtags created for the campaign. Influencers and consumers can use these hashtags to track the campaign's performance and see how many people are talking about it.
2. Campaign account tags: These are used to tag the account associated with the influencer marketing campaign. It helps track the campaign's reach and engagement and helps brands measure the success of their influencer marketing campaigns.
3. Engagement: This metric allows brands to track user-generated content. It is a powerful indicator of the campaign's success and helps brands measure the impact of their influencer marketing campaigns.
Influencer marketing campaigns have become increasingly popular in recent years. Brands partner with social media influencers with large followings to promote their products or services. To track influencer marketing campaigns in real-time, brands use various elements, such as campaign hashtags and campaign account tags.
Campaign hashtags are unique hashtags created for the campaign. Influencers and consumers can use these hashtags to track the campaign's performance and see how many people are talking about it. They help brands understand how well their campaigns are performing and provide insights into which influencers are driving the most engagement.
Campaign account tags are used to tag the account associated with the influencer marketing campaign. It helps track the campaign's reach and engagement and helps brands measure the success of their influencer marketing campaigns. Brands can also use the data collected from campaign account tags to identify trends and make data-driven decisions.
Finally, engagement is a powerful metric that allows brands to track user-generated content. It is a powerful indicator of the campaign's success and helps brands measure the impact of their influencer marketing campaigns. Brands can analyze engagement data to understand which types of content are resonating with their audience and optimize future campaigns accordingly.
To learn more about marketing
https://brainly.com/question/27155605
#SPJ11
Respond to the following in a minimum of 175 words:
Describe the purpose of the five primary financial statements.
Statement of Comprehensive Income
Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Shareholder's Equity
Give an example of a profitability, liquidity, and solvency ratio and explain the components and which financial statement would provide the information.
The five primary financial statements serve as crucial tools for understanding and evaluating the financial performance and position of a company. Each statement provides specific information that aids investors, stakeholders, and analysts in making informed decisions.
1. Statement of Comprehensive Income (also known as the Income Statement or Profit and Loss Statement): This statement presents a summary of revenues, expenses, gains, and losses over a specific period. It showcases the profitability of a company by calculating the net income or net loss after deducting expenses from revenues.
2. Balance Sheet: This statement presents the financial position of a company at a specific point in time. It provides a snapshot of a company's assets, liabilities, and shareholders' equity. The balance sheet illustrates the company's liquidity, solvency, and overall financial health.
3. Statement of Cash Flows: This statement tracks the inflow and outflow of cash and cash equivalents during a specific period. It categorizes cash flows into operating activities, investing activities, and financing activities. It offers insights into a company's liquidity, cash generation, and ability to meet its financial obligations.
4. Statement of Shareholders' Equity: This statement outlines the changes in shareholders' equity over a specific period. It includes components such as share capital, retained earnings, and other comprehensive income. The statement of shareholders' equity reflects the source of funds for the company's operations and investment activities.
Now, let's discuss examples of three important financial ratios and their components:
1. Profitability Ratio: Return on Equity (ROE)
ROE measures a company's ability to generate profit from shareholders' investments. It is calculated by dividing net income by shareholders' equity. The Income Statement provides the necessary information to compute ROE.
2. Liquidity Ratio: Current Ratio
The current ratio assesses a company's ability to meet short-term obligations. It is calculated by dividing current assets by current liabilities. The Balance Sheet provides the data required to calculate this ratio.
3. Solvency Ratio: Debt-to-Equity Ratio
This ratio indicates the proportion of debt financing compared to equity financing. It is calculated by dividing total liabilities by shareholders' equity. The information needed to compute this ratio is available on the Balance Sheet.
In conclusion, the primary financial statements serve distinct purposes, providing valuable insights into a company's financial performance, position, and cash flow. These statements, along with financial ratios, allow stakeholders to assess profitability, liquidity, and solvency, aiding in decision-making processes.
Learn about more financial statements here: brainly.com/question/917245
#SPJ11
Assume that the consensus required rate of return on common stocks is 16 percent. In addition, you read in Fortune that the expected rate of inflation is 7 percent and the estimated long-term real growth rate of the economy is 3 percent. What interest rate would you expect on U.S. government T-bills? Round your answer to two decimal places. % What is the approximate risk premium for common stocks implied by these data? Do not round intermediate calculations. Round your answer to two decimal places. %
The approximate risk premium for common stocks implied by these data is 13%.
Explanation:
To calculate the interest rate expected on U.S. government T-bills, we need to deduct the estimated inflation rate from the required rate of return on common stocks.
Given information:
Consensus required rate of return on common stocks: 16%
Expected rate of inflation: 7%
Estimated long-term real growth rate of the economy: 3%
Interest rate expected on U.S. government T-bills = Consensus required rate of return on common stocks - Expected rate of inflation
Interest rate expected on U.S. government T-bills = 16% - 7% = 9%
Therefore, the interest rate expected on U.S. government T-bills is 9%.
To calculate the approximate risk premium for common stocks, we need to subtract the estimated long-term real growth rate of the economy from the required rate of return on common stocks.
Approximate risk premium for common stocks = Consensus required rate of return on common stocks - Estimated long-term real growth rate of the economy
Approximate risk premium for common stocks = 16% - 3% = 13%
Therefore, the approximate risk premium for common stocks implied by these data is 13%.
Learn more about risk premiums here: brainly.com/question/13647139 #SPJ11
1. Because of the diversity of trends facing Organization Development at this time, which of the following is likely to occur in the future?
a. There will be great competition for available OD contracts.
b. None of these are correct.
c. The field of OD will need to create new interventions.
d. There will be fewer OD practitioners.
According to the question the correct answer is The field of OD will need to create new interventions.
Given the diversity of trends facing Organization Development (OD) at this time, it is likely that the field will need to create new interventions in the future. As organizations face evolving challenges and changes in the business environment, traditional OD interventions may not be sufficient to address these complexities. OD practitioners will need to adapt and innovate their approaches to meet the specific needs and emerging trends in organizational development. This may involve developing new tools, methodologies, and practices that are tailored to the unique challenges faced by organizations in the future. By creating new interventions, the field of OD can stay relevant and effectively support organizations in their growth and development.
To learn more about Organization
https://brainly.com/question/25922351
#SPJ11
Background:
Your Selling Career at Black & Decker continues to progress. You have been promoted to the position of a Regional Sales manager and made a member of the compensation committee.
_________
In this new role, beyond leading a team of Territory Managers [TM’s], you have been assigned the task of studying and recommending to the SLT [Senior Leadership Team], The Executive committee and an external consultant {TCG- Toronto Consulting Group] on a NEW sales compensation structure.
The problem:
Simply put the company is experiencing high levels of staff turnover (leaving the company or going to different departments) plus the lack of performance (over achievement of quota) by the Best/Top Sales Representatives.
The Challenge from the SLT is: Study, and Recommend (as part of the Sales team) the following deliverables:
Your Assignment: Recommend a Sales compensation Plan which includes the following:
Outline the elements (fixed salary, if any, variable pay) of the sales compensation plan (by role / level):
Level 1: Inside Sales (IS) , [4]
Level 2: Territory Managers (TM’s) , [10]
Level 3: Regional Sales Managers RSM’s [3]; National Account Managers
NAM’s [4]
NOTE: Numbers in brackets above [4] – are number of salespeople in each role
Assumptions for Total Compensation at each level:
Level 1= $50,000 (OTE) * On Target Earnings (earnings when target/sales quota is achieved)
Level 2 = $100,000 (OTE)
Level 3 = $150,000 (OTE)
When considering the compensation plan include:
Core Elements: [base pay, commissions, bonuses]. How much should be Fixed earning Versus incentive pay (for each level)……… (40 marks)
If Using commissions in the sales compensation plan- Identify if [Absolute, relative, straight-line, gross margin] and why you selected the one you did…….. (5 marks)
Prepare a budget based on the title, number of peoples at each level and split out by Fixed, Variable and Total Expense based on Sales plan/quota (i.e. what will be the total cost if targets/sales quotas are achieved 100%)……. (5 marks)
What would happen to the budget if the company exceeded the target by 20% ?.......... (3 marks)
What would happen to the budget if the company fell short of the target by 20%?.......... (2 marks)
NOTE: For Budget Calculations, assume that the sales target is $100,000,000.
Outline what potential challenges sales compensation plans must avoid and describe how your plan will ensure these challenges are avoided…………. (20 marks)
Note: Consider the following challenges: complexity of the sales compensation plan; capping sales compensation, less motivated employees and motivating higher performance plus any other challenges you can offer.
Since Sales Staff Turnover has been raised as a key concern, outline what plan elements you would include to ensure better staff retention…… (15 marks)
NOTE: Include in your thinking: Hiring/ onboarding (discuss with candidates what to look for/ industry choices and career paths; Long -term job outlooks; types of compensation and personality fit)
Also Consider: Salesperson motivation, training and performance management elements to better ensure the sales team stays engaged.
Exiting Sales personnel have identified Time management and their ability to actually spend time with clients as a key barrier to
successfully achieving goals….. (10 marks)
As Part of this proposal, outline what time management "Tools & techniques" you would incorporate to (a) better allow the sales team to achieve goals and (b) reduce stress and frustration.
Note: Consider tools and techniques including but not limited to: Working from a list/prioritizing activities/automating administrative tasks/ creating templates (emails, etc); minimizing distractions, and multitasking challenges.
Recommendations for a sales compensation plan: balance fixed salary and incentives, use absolute commissions, allocate budget based on target and split into fixed/variable expenses, address challenges with simplicity, caps, motivation, training, and time management tools for better retention and performance.
To recommend a sales compensation plan that addresses the company's challenges, here is an outline of the elements and strategies to consider for each level:
Level 1: Inside Sales (IS) - 4 salespeople
Elements: Fixed salary ($50,000 OTE), commissions, bonuses
Recommendation: Emphasize incentives in the compensation mix to motivate performance and drive results.
Level 2: Territory Managers (TM's) - 10 salespeople
Elements: Fixed salary, commissions, bonuses
Recommendation: Maintain a balance between fixed earnings and incentives to provide stability while rewarding achievement.
Level 3: Regional Sales Managers (RSM's) - 3 salespeople; National Account Managers (NAM's) - 4 salespeople
Elements: Fixed salary, commissions, bonuses
Recommendation: Provide higher fixed earnings combined with performance-based incentives to recognize leadership and strategic contributions.
For commissions in the sales compensation plan:
Select an absolute commission structure to reward salespeople based on individual performance and to align incentives with specific sales targets.
Absolute commissions offer transparency and simplicity, making it easier for salespeople to understand their potential earnings.
Budget based on the target of $100,000,000 (assuming 100% achievement):
Allocate fixed expenses based on the number of people at each level.
Allocate variable expenses (commissions, bonuses) based on projected sales performance.
Split the budget into fixed, variable, and total expenses to track and manage costs effectively.
If the company exceeded the target by 20%:
The budget would increase due to higher sales, resulting in higher variable expenses (commissions, bonuses).
If the company fell short of the target by 20%:
The budget would decrease as sales would be lower, resulting in reduced variable expenses.
To avoid potential challenges in sales compensation plans:
Keep the plan simple and easy to understand to avoid complexity and confusion.
Implement a well-defined cap on sales compensation to prevent excessive payouts and maintain cost control.
Foster a motivating environment through performance-based incentives to keep employees engaged and driven to achieve higher performance.
To ensure better staff retention:
Focus on hiring and onboarding practices to attract and select candidates aligned with the industry, career paths, and compensation structure.
Communicate long-term job outlooks and growth opportunities to instill confidence and commitment.
Provide ongoing motivation, training, and performance management to support continuous development and engagement.
To address time management challenges:
Introduce time management tools and techniques such as prioritization, task lists, and automation of administrative tasks.
Create templates for common activities (emails, proposals) to streamline processes and save time.
Minimize distractions and provide guidelines to minimize multitasking and improve focus.
Support sales team members in balancing their schedules to allocate sufficient time for client interactions.
By incorporating these elements and strategies, the sales compensation plan can incentivize performance, reduce turnover, and improve overall sales team productivity and satisfaction.
To know more about sales compensation plans:
https://brainly.com/question/32155641
#SPJ4
Which of the five goals governs the current state and the history of the technical baseline for stakeholders across organizations? GOAL 3: Incorporate technological innovation to improve the engineering practice GOAL 5: Transform the culture and workforce to adopt and support digital engineering across the lifecycle GOAL 2: Provide an enduring, authoritative source of truth GOAL 4: Establish a supporting infrastructure and environments to perform activities, collaborate, and communicate across stakeholders GOAL 1: Formalize the Development, Integration, and Use of Models to Inform
The goal that governs the current state and the history of the technical baseline for stakeholders across organizations is GOAL 2: Provide an enduring, authoritative source of truth.
What is a Technical Baseline? A technical baseline is a documented, detailed description of a system or project’s technical characteristics and criteria at a specific point in time. It establishes and records the present state of system or project development, which can then be used as a basis for future changes.
The Defense Science Board Task Force on Integrating Sensor-Collected Intelligence identified five goals that govern the current state and the history of the technical baseline for stakeholders across organizations. The five goals are as follows:
GOAL 1: Formalize the Development, Integration, and Use of Models to Inform GOAL
2: Provide an enduring, authoritative source of truth GOAL
3: Incorporate technological innovation to improve the engineering practice GOAL
4: Establish a supporting infrastructure and environments to perform activities, collaborate, and communicate across stakeholders
GOAL 5: Transform the culture and workforce to adopt and support digital engineering across the lifecycle Out of the five goals, the one that governs the current state and the history of the technical baseline for stakeholders across organizations is
GOAL 2: Provide an enduring, authoritative source of truth.
To know more about stakeholders visit:
https://brainly.com/question/30241824
#SPJ11
the putney corporation can borrow at a fixed rate of 11% and a variable rate of libor 5% while walpole inc. can borrow at a fixed rate of 6% and a variable rate of libor 1%. if the type of rate each of them wants is the comparative advantage rate for the other, what is the total percentage they could gain and split, assuming they do not use a dealer.
The total percentage gain that can be split between Putney Corporation and Walpole Inc. is 11%.
What is the total percentage gain and split?Putney Corporation:
Fixed rate: 11%Variable rate: LIBOR 5%Walpole Inc.:
Fixed rate: 6%Variable rate: LIBOR 1%To get total percentage gain and split, we must find the difference between the fixed rate and the variable rate for each company. Then, we sum up these differences and split it between the two companies.
Putney Corporation's gain:
= Fixed rate - Variable rate
= 11% - 5%
= 6%
Walpole Inc.'s gain:
= Fixed rate - Variable rate
= 6% - 1%
= 5%
Total percentage gain:
= Putney Corporation's gain + Walpole Inc.'s gain
= 6% + 5%
= 11%.
Read more about percentage gain
brainly.com/question/809966
#SPJ4
Name three different companies and explain which of Porter's
three competitive strategies they have adopted and why it is
successful or not.
Introduction Porter's Three Competitive Strategies are a great way to classify a company's competitive edge. They are called cost leadership, differentiation, and focus. Three companies that have adopted these strategies are Apple, Walmart, and Netflix.
Porter's Three Competitive Strategies are as follows: Cost Leadership: This is the most popular strategy, which is about providing products and services at the lowest possible cost. It is the most difficult strategy to achieve because firms must keep their costs lower than their competitors. To achieve cost leadership, a company must use a variety of methods, such as process efficiency, technological advancements, and outsourcing.
Differentiation: This is about creating products and services that are different from those of your competitors. Companies that follow this strategy aim to create products that have a unique set of features that set them apart from others.
Focus: Focus is about targeting a niche market. It is about selling products and services to a specific group of people that are underserved by other companies. Companies that adopt this strategy are often very good at serving the needs of a specific group of people.
Example 1: Apple - Differentiation Apple is known for its unique products. Apple uses differentiation as its main competitive strategy, which has helped it create a loyal customer base. Apple's products stand out in the market due to their unique features, such as the camera, touch screen, and sleek design.
Example 2: Walmart - Cost Leadership Walmart is known for providing products and services at the lowest possible cost. Walmart has been able to achieve cost leadership through a variety of methods, such as process efficiency, technological advancements, and outsourcing. Walmart has been able to maintain its position as a low-cost provider, which has helped it attract a large customer base.
Example 3: Netflix - Focus Netflix is known for its streaming service. Netflix has been able to achieve success by focusing on a niche market. Netflix targets customers who want to watch movies and TV shows online, and has been very good at serving their needs. Netflix's success is due to its ability to offer a wide selection of movies and TV shows at a low price.
To Know more about Competitive Strategies
https://brainly.com/question/28963817
#SPJ11
Share examples of two products you have recently purchased and why you selected each.
A product you purchased at the lowest available price for the value (EXAMPLE: bottled water, gasoline, etc.)
A product you purchased at a higher than necessary price because of your experience with the product or the company's, brand's, or product's reputation (EXAMPLE: fashion and food brands), PLUS REFERENCES
As an AI language model, I don't have real-life experiences or the ability to make purchases. However, I can provide you with examples based on common consumer preferences.
1. Product purchased at the lowest available price for the value: Generic Prescription Medication
When purchasing prescription medication, I often opt for generic brands rather than the more expensive name brands. Generic medications contain the same active ingredients as their brand-name counterparts but are typically sold at a lower price. I select generic options to save money while still receiving the same quality and effectiveness as the brand-name versions. The decision to choose generic medication is based on the understanding that the active ingredients are regulated and approved by relevant health authorities, ensuring their safety and efficacy.
Reference:
- U.S. Food and Drug Administration (FDA): "Generic Drugs: Questions and Answers" - https://www.fda.gov/drugs/questions-answers/generic-drugs-questions-answers
2. Product purchased at a higher than necessary price due to brand reputation: Apple iPhone
When purchasing a smartphone, I have often chosen Apple's iPhone, even though it may come at a higher price compared to other smartphones with similar features. I select Apple products because of their reputation for high-quality, user-friendly interfaces, seamless integration with other Apple devices, and a strong ecosystem of apps and services. The positive experience I have had with Apple products in the past, including their reliability, performance, and customer support, has influenced my decision to pay a premium price for an iPhone.
Learn more about customer here:
https://brainly.com/question/31192428
#SPJ11
You have $3,800 that you want to use to open a savings account. There are five banks located in your area. The rates paid by banks A through E, respectively, are given below. What is the effective rate offered by each of the banks?
Bank A offers 4 42 percent APR, compounded annually.
EAR= 1.12 %
Bank B offers 3 5 percent APR, compounded monthly.
EARB=%
Bank C offers 5.37 percent APR, compounded semiannually.
EARC=%
Bank D offers 4.38 percent APR, compounded continuously.
EARD=
Bank E offers 3.69 percent APR, compounded quarterly
EARD = 0%
If your goal is to maximize your interest income, what should your account balance be after one year? (Be sure to use the full,
unrounded value for your interest rate).
An effective annual interest rate (EAR) is the interest rate that is adjusted for compounding over a given period. EAR is the actual rate of interest earned on an investment or paid on a loan after the effects of compounding have been calculated. It is calculated as follows:
[tex]EAR = (1 + r/n)^n - 1[/tex]
where r is the annual interest rate, and n is the number of compounding periods per year.
Bank A offers 4.42% APR, compounded annually.
[tex]EAR = (1 + r/n)^n - 1 = (1 + 0.0442/1)^1 - 1 = 0.0442 = 4.42%[/tex]
Bank B offers 3.5% APR, compounded monthly.
[tex]EAR = (1 + r/n)^n - 1 = (1 + 0.035/12)^12 - 1 ≈ 0.035939 = 3.594%[/tex]
Bank C offers 5.37% APR, compounded semi-annually.
[tex]EAR = (1 + r/n)^n - 1 = (1 + 0.0537/2)^2 - 1 ≈ 0.0553 = 5.53%[/tex]
Bank D offers 4.38% APR, compounded continuously.
[tex]EARD = e^r - 1 = e^(0.0438) - 1 ≈ 0.0449 = 4.49%[/tex]
Bank E offers 3.69% APR, compounded quarterly.
[tex]EARD = (1 + r/n)^n - 1 = (1 + 0.0369/4)^4 - 1 ≈ 0.0377 = 3.77%[/tex]
To maximize our interest income, we need to choose the bank that provides the highest EAR. So, the bank with the highest EAR is bank C, which offers 5.53% EAR. Therefore, we should choose bank C.
To calculate the account balance to maximize our interest income after one year, we need to use the formula:
[tex]A = P(1 + r/n)^(n*t)[/tex]
Where A is the balance, P is the principal, r is the annual interest rate, t is the time in years, and n is the number of times the interest is compounded per year.
Here, P = $3,800, r = 5.37%, n = 2, and t = 1.
[tex]A = 3800(1 + 0.0537/2)^(2*1) ≈ $4,000.48[/tex]
Therefore, our account balance should be approximately $4,000.48 to maximize our interest income.
To know more about investment visit:
https://brainly.com/question/14921083
#SPJ11
The following are Amir’s cash book and bank statement for July 2020.
Date
Transaction
RM
Date
Transaction
RM
Jul 1
Balance b/d
2,000
July 2
Cinta
480
12
Abu
740
14
Ellie
980
17
Laili
1,020
23
Badrul
1,500
25
Aiman
1,240
31
Balance c/d
2,400
30
Cash
360
5,360
5,360
Bank Statement-Amir
Date
Transaction
Debit (RM)
Credit (RM)
Balance (RM)
Jul 1
Balance
2,000
4
Cinta
480
1,520
15
Abu
740
2,260
19
Ellie
980
1,280
21
Dividend
320
1,600
23
Laila
1,020
2,620
31
Bank charges
150
2,470
Required:
An adjusted cash book
A bank reconciliation statement as at 31 July 2020
Amir's adjusted cash book for July 2020 is shown below: Date Transaction RM Balance RM Date Transaction RM Jul 1Balance b/d2,000July 2Cinta480 12Abu740 14Ellie980 17Laili1,020 23Badrul1,500 25Aiman1,240 31Balance c/d2,400Adjustments:Bank charges (150)Add: Unpresented cheques Cinta480Badrul1,500Aiman1,2403,220Bank Statement-Amir Date Transaction Debit (RM)Credit (RM)Balance (RM)Jul
1Balance2,0004 Cinta 4801,52015Abu7402,26019Ellie9801,28021 Dividend 3201,60023Laila1,0202,62031Bank charges1502,470Adjustments:Less: Uncredited cheques Nil Nil Balance per bank statement2,470Balance per cash book2,400Difference 70 RM(RM2,470 - RM2,400)Bank Reconciliation Statement for July 2020Balance per bank statement2,470Add: Uncredited cheques Nil Less: Unpresented cheques3,220Adjusted balance (750)Balance per cash book2,400Less: Bank charges150Adjusted balance (2,550)The adjusted balance in the cash book is less than the adjusted balance in the bank statement by RM750.
learn more about cash here:
https://brainly.com/question/30588084
#SPJ11
