Answer:
P14 = $55.69545045394 rounded to $55.70
Explanation:
The dividend discount model (DDM) based on constant growth can help determine the current stock price. It assesses a stock’s price using the present value of the anticipated future dividends. The formula for determining today's price with a constant growth DDM is,
P0 = D1 / (r - g)
Where,
- D1 represents the expected dividend for Year 1 or the following year
- g denotes the constant growth rate for dividends
- r signifies the discount rate or the required rate of return
To find the stock price today, we will utilize the dividend expected in Year 1. Consequently, to compute the stock price 14 years into the future, we calculate D15. D15 can be figured out as follows,
D15 = D1 * (1+g)^14
D15 = 0.50 * (1+0.09)^14
D15 = $1.67086351362 rounded to $1.67
Now applying the DDM formula for the price,
P14 = 1.67086351362 / (0.12 - 0.09)
P14 = $55.69545045394 rounded to $55.70
Response:
- 1. During this fiscal year, the total amount of bad debts that were written off was:
Allowance for Doubtful Accounts
$ 147 Credit
$ 94 Credit
$ 58 Debit
$ 183 Credit Balance
Dr Allowance for Uncollectible Accounts $ 58
Cr Accounts Receivable Net $ 58
2. Based on your answer to question (1), determine the cash collected from clients for this financial year.
Accounts Receivable
$ 11,785 Debit
$ 61,170 Debit
$ 58 Credit
$ 58,825 Credit
$ 14,072 Debit Balance
Explanation:
To ascertain the amount of debt written off during the ongoing year, take into account the balance from the previous year and factor in the total recorded for bad debts within the year. The difference between the total for the current year and these figures will indicate the written-off amount.
- In the current year, Hassell noted a bad debt expenditure of $94 with no recoveries reported.
Dr Bad Debt Expense $ 94
Cr Allowance for Uncollectible Accounts $ 94
1. What was the total amount of bad debts written off in the current year?
Allowance for Doubtful Accounts
$ 147 Credit
$ 94 Credit
$ 58 Debit
$ 183 Credit Balance
Dr Allowance for Uncollectible Accounts $ 58
Cr Accounts Receivable Net $ 58
2. Using the answer from requirement (1), calculate the cash obtained from customers this year
With previously calculated figures, you can calculate the total amount collected throughout the year. You repeat the process used earlier to figure out the amount; using the movements from the current year, deduce the total collected value.
Accounts Receivable
$ 11,785 Debit
$ 61,170 Debit
$ 58 Credit
$ 58,825 Credit
$ 14,072 Debit Balance
Dr Cash $ 58.825
Cr Accounts Receivable Net $ 58.825
Answer:
Journal Entries
1) Debit Salary Expense $6,667 Credit Bank $6,667
2) Debit Fuel and Maintenance Expense $600, Credit Bank $600
3) Debit Depreciation Expense $amount Credit Accumulated Depreciation $amount
4) Debit Insurance Expense $amount Credit Bank $amount
5) Debit Benefit Expense $amount Credit Accrued Benefit Expense $amount
6) Debit Accounts Receivable (total of all trips) $amount Credit Service Revenue $amount
Explanation:
The prompt is not complete, but I will create typical journal entries for the transactions without numerical figures.
1) The salary represents one month, and the in brackets is a $80,000*1/12 calculation showing that the $80,000 is annual; should this have been already recorded, we would debit salaries payable $6,667 and credit bank $6,667
4) Insurance expense is debited if paid as incurred, but if there's a Prepaid Insurance account, we credit the Prepaid Insurance account instead of Bank.
Response:
The interest rate is 5.7% $21.204
Clarification:
The formula for calculating simple interest is
I =
Given that
I = Interest, T = time;;R is rate; P = principal
John earned this interest by July 1, 1993 as follows:
I = 
= 72
Consequently, the total amount in John's account by July 1, 1993 would then be
= $300 + $72= $372
This indicates he utilized these funds at an interest rate of q.
On July 1, 1998, John’s total was $520, meaning the interest accumulated in these five years equals $520 - $372 = $148.
Using the simple interest formula: Interest = PRT/100
148 =
= 14,800 =2600q
q =
Thus, the rate is found to be 5.7%
The interest amount between July 1, 1993, and July 1, 1994 calculates as
I = 
= $21.204
Answer: The result is -2.42
Explanation:
P1 = $4 Q1 = 800
P2 = $4.50 Q2 = 600
Applying the midpoint formula, we calculate:
For price:
P2 - P1/(P2 + P1)/2
= 4.5 - 4/(4.5 + 4)/2
= 0.5/4.25
= 0.12
For quantity:
Q2 - Q1/(Q2 + Q1)/2
= 600 - 800/(600 + 800)/2
= -200/700
= -0.29
The price elasticity of demand is calculated as change in quantity/change in price
= -0.29/0.12
= -2.42.
