Answer:
warranty liablity account ending balance: 3,510,000
Explanation:
In total, we expect a warranty expense for 6% for each sale distributed among three years.
For the 32,000,000 million sales for 2019 we expect:
32,000,000 x 6% = 1,920,000 warranty expense.
warranty liaiblity
debit credit
beginning 3,370,000
expenditures 1,780,000
warranty expense <u> 1,920,000</u>
balance 3,510,000
Answer: d. $282,000
Explanation:
The workforce complement is to increase by 10%;
= 471 * 10%
= 47.1
= 47 people
Recruiting cost = 47 * (recruiting base + recruiting spend)
= 47 * ( 1,000 + 5,000)
= $282,000
Answer: D. will be less than the intrinsic value of stock Y
Explanation:
Based on the information given above, the intrinsic value of Stock X will be calculated thus:
D1 = Dividend in next year = $3
g = growth rate = 7%
r = = 13%
Therefore, intrinsic value of Stock X will be:
= D1 / (r-g)
= 3 / (13% - 7%)
= 3/6%
= 3 / 0.06
= $50
Therefore, the intrinsic value of stock X is $50.
Intrinsic value of Stock Y will b calculated thus:
D1 = $4
g = 7%
r = 13%
Intrinsic value of Stock Y will be:
= D1 / (r-g)
= 4 / (13% - 7%)
= 4/6%
= 4 / 0.06
= 66.67
Intrinsic value of Stock Y is $66.67
Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y
