What is the value of a preferred stock that pays a perpetual dividend of $150 at the end of each year when the interest rate is 7 percent

Answer:

Explanation:

Deductible state income tax = $3,500 + $750 = $4,250

A political party is not a qualified charitable organization and it does not qualify for deductible charitable contributions.

Final answer:

Debra's ending inventory amount, calculated using the given inventory transactions and assuming no sales occurred, is $1,220,000 for the month of June.

Explanation:

We are going to calculate the ending inventory amount for Debra Company using the following inventory transactions:

The calculation proceeds as follows:

The ending inventory will be $1,220,000, assuming there were no other transactions affecting inventory and Debra uses the perpetual inventory system with no sales taking place.

Debra will have $1,220,000 in inventory at the end of the month, considering the purchases, freight cost, and merchandise return.

To calculate the dollar amount that Debra will have in inventory at the end of the month, we need to consider the net effect of the transactions on inventory.

1. Purchases of merchandise on account: $1,200,000 increases inventory.

2. Cost of freight: $40,000 increases inventory.

3. Return of merchandise: $20,000 decreases inventory.

4. Payment for merchandise: The remaining balance of purchases increases inventory.

Net effect on inventory: (Purchases + Freight) - Return

[tex]\[ \text{Net inventory} = (1,200,000 + 40,000) - 20,000 \][/tex]

[tex]\[ \text{Net inventory} = 1,240,000 - 20,000 \][/tex]

[tex]\[ \text{Net inventory} = 1,220,000 \][/tex]

Therefore, Debra will have $1,220,000 in inventory at the end of the month.

Answer:

The correct answer is letter "B": organizational.

Explanation:

Stress because of organizational factors refers to all those produced as the result of labor activities. Tight deadlines, an overload of duties, low promotion opportunities, insufficient budgets are typical causes why employees could get on their nerves within the work-frame.

Jerry's stress is due to organizational factors related to his job's role demands and tight deadlines. Autonomy and job control are known to alleviate such stress. Personality types, such as Type A, can also influence how stress is experienced and managed.

Jerry is feeling stress due to an organizational factor. The stress is coming from his job and the role demands that expect him to deliver work under a very tight deadline, causing him to work nights and weekends. This situation is categorized as an organizational behavior issue where role demands and the lack of control over one's environment contribute significantly to stress levels. According to studies, individuals who have more autonomy at work and feel a greater sense of control tend to manage stress more effectively. Furthermore, the stress Jerry experiences may be exacerbated if he displays a Type A personality characterized by high levels of speed/impatience and job involvement. To mitigate such stress, organizations can build autonomy and support into jobs.

Answer:

a. Physical appearance

Explanation:

The Physical appearance of a person is as a result of the genetic make up of the individual. This factor barely has an influence on an individual’s core belief system.

Religious background is a key element of individual’s core belief system as it forms the basis of one's belief about God, life, fate and destiny.

Family upbringing forms the basis of one's belief as the individual grows. The influence of the members of a family forms a part of the individual's core belief.

Life experiences as well forms a key part of our belief system and the same goes for personality.

Answer:

$14,960

Explanation:

Data provided in the question:

Sales = $630,000

Cost of goods sold = 380,000

Gross margin = $250,000

Selling and administrative expense = 174,400

Operating income = $75,600

Income taxes (@ 40%) = 30,240

Net income i.e After tax income = $45,360

Total capital employed = $380,000

East Mullett's actual cost of capital = 8 percent

Now,

EVA for East Mullett Manufacturing

= After tax income - [ Actual cost of capital × Total capital employed ]

= $45,360 - [ 8% × $380,000 ]

= $45,360 - $30,400

= $14,960

Answer:

B. Deliverables

Explanation:

Deliverables -

It refers to the good and services , which may or may not be tangible , that are produced by some project which need to be delivered to the customer , which can be internally as well as externally , is referred to as deliverables.

Since, deliverables are intangible so , it can be software or presentation.

Various small deliverables merge together to form a deliverable.

Hence, from the given information of the question,

The correct option is B. Deliverables .

Answer:

The Journal entry is as follows:

Work In Progress A/c Dr. $142,000

     To wages payable                       $142,000

(To record the  flow of labor costs into production)

Note :

1. Total Labor Cost for Job 200 = Labor Hours × Direct labor rate

= 2,500 × $ 28

= $ 70,000

2.  Total Labor Cost for Job 305 = Labor Hours × Direct labor rate

= 3,000 × $ 24

= $ 72,000

3. Labor Cost = $ 70,000 + $ 72,000

                        = $ 142,000

Final answer:

To journalize the labor costs for Bergan Company, the total direct labor costs for Job 200 and Job 305 need to be calculated and then recorded as an increase in Work in Process Inventory and Wages Payable for a total of $142,000.

Explanation:

To journalize the entry for the flow of labor costs into production during May for Bergan Company, we need to calculate the total direct labor cost for each job. Job 200 incurred 2,500 hours at a rate of $28 per hour, and Job 305 incurred 3,000 hours at a rate of $24 per hour. The journal entry would look like this:

The total direct labor for both jobs is $70,000 + $72,000 = $142,000.

The journal entry to record these costs is:

This entry reflects the transfer of labor costs into work in process inventory, showing that both the cost of the labor and the obligation to pay for that labor have increased.

Answer:varible

Explanation: you welcome

Final answer:

The hourly workers' cost in a carpet cleaning service company is both a variable and a direct cost because they vary with the number of services provided and are directly associated with those services. Both is correct

Explanation:

The cost of the hourly workers who clean carpets for a service company would be classified as both variable and direct. Variable costs change in proportion to the amount of service provided or goods produced.

For the carpet cleaning company, as more carpets are cleaned, more hours of labor will be necessary, hence increasing the variable costs of labor. Additionally, the cost is direct because it is directly associated with the service provided to customers - carpet cleaning.

The theory of cognitive dissonance explains that people experience psychological discomfort when they hold conflicting beliefs and behaviors, and they try to reduce this discomfort by justifying their actions.

According to the theory of cognitive dissonance, people strive to justify their behavior by reducing the degree to which their beliefs or impressions are inconsistent with reality. The concept was introduced by psychologist Leon Festinger in 1957 and addresses the psychological discomfort that arises from holding two or more inconsistent attitudes, behaviors, or cognitions. For instance, if someone believes that smoking is harmful but continues to smoke, they are likely to experience cognitive dissonance due to the conflict between their belief and their behavior.

Answer:

Cash flow

Explanation:

Days sales outstanding (DSO) is the average number of days (from the day sales were made) it takes for an entity to collect cash from credit or receivable customers. It is a financial ratio that is used generally to measure

how an entity is able to manage its account receivable and improve cash flow. The formula for the  calculation of  DSO is:

(Accounts Receivable / Net Credit Sales) x 365

Apart from the lost of interest on deposit associated with high DSO, entities will enjoy the advantage of increase cash flow when they are able to drive down their days sales outstanding (DSO)

A company would aim to reduce the number of days sales outstanding (DSO) to improve its cash flow. The DSO represents the average time it takes for a firm to get paid after a sale has been made. The quicker a company can collect its payments, the better its cash flow.

The primary reason a firm would work to decrease the number of days sales outstanding (DSO) is to improve cash flow. The DSO refers to the average time it takes for a company to collect payment after a sale has been made, operationalizing businesses' credit and collection policies.

A high DSO could indicate poor cash management or problematic customers difficulties in paying on time. By reducing the DSO, companies can get their money quicker, enhancing financial performance and stability through improved cash flow.

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Answer:

Gross Margin = $ 115,000 Contribution Margin= $ 144,500

Explanation:

Nile Castings

Income Statement

Year 2

Sales Revenue                                                           $ 270,000

Direct Materials                                                            $63,000

Direct Labor                                                                 $ 33,000

Variable Manufacturing Overheads                            $ 18,000

Fixed Manufacturing Costs                                          $ 41,000

Gross Margin                                                                $ 115,000

Less Marketing & Administrative Costs

Fixed Marketing Costs                                                 $ 38,000

Variable Marketing Costs                                           $ 11,500

Net Profit                                                                    $ 65,500

Nile Castings

Income Statement Under Absorption Method

Year 2

Sales Revenue                                                           $ 270,000

Direct Materials                                                            $63,000

Direct Labor                                                                 $ 33,000

Variable Manufacturing Overheads                            $ 18,000

Variable Marketing & Administrative Costs               $ 11,500

Contribution Margin                                                  $ 144,500

Less Fixed Costs

Fixed Manufacturing Costs                                       $ 41,000

Fixed Marketing Coss                                                $ 38,000

Net Profit                                                                    $ 65,500

Answer: True

Explanation:

This enables the Maritime Administration to help promote the national economy. The subsidies being an indirect trade restriction.

Answer:

For Option 1:

Cost = $175

Variable Cost = $0.20

For Option 2:

Cost = $350

Variable Cost = $0.09

A).

Volume demand would be same at

175 + x × 0.20 = 350 + x × 0.09

175 + 0.20x = 350 + 0.09x

0.20x – 0.09x = 350 – 175

X = 175/0.11

X = $1590.9

B).

Total cost at this break-even volume is  

For option 1:

= $175 +1590.9 × 0.20

= $493.18

For Option 2:

= $350 + 1590.9 × 0.09

= $493.18

Answer:

The main function of the legislatures is to make laws and establish guidelines  and other statutes that would establish peaceful co-existence among the peoples.

Explanation:

The main difficulties often experienced by legislatures when carrying out their functions are numerous, beginning with public criticism both positively and negatively, down to the diffferences that may arise in terms of reaching a consensus on any particular bill proposed by a legislator to the House.

Also, the idea of incompetency cannot be overlooked because some members of the House of legislature when assigned to a specific and unique functions are sometimes unable to deliver results as expected by the House and the people who elected them to this function.

Structural changes is one means to this challenges, if it is so necessary. As cited in the instance above, an incompetent legislator or committee should be reviewed, reenacted and competency implied in the appoint to such functions. By so doing,the functions of the legislature will experience less challenges and difficulties.

Answer: The changes in the constitution

Explanation:

The legislature is the second arms of government in a democracy. It is made up of men and women of integrity who had been elected by the people to represent their constituencies in the parliament. The functions of legislature ranges from making law for the good governance of the nation, serve as check and balances to the other arms of government, perform an oversight functions on the executive, approval of annual budget, approval of nomination of executive, impeachment of the executive for allegation of misconduct and so on. In carrying out these functions they face the following difficulties

Parliamentary autonomy : Apart from the parliament of most of the developed countries, the parliament of the developing countries of the world still face the problems of parliamentary autonomy. In most of these countries the executive still exercise some form of control on the parliament in areas such as the financial autonomy most of them still run to the executive to get funds for their activities. Also they cannot recall their members whenever the need arise.

Personnel : The parliament in most of the developing countries apart from the developed countries lack the expert staff who are well trained to provide support to members in the performance of their legislative duties to members of their constituencies.

Resources : The parliament in most of these countries also lack the resources needed to perform their legislative duties effectively. They lack the resources such as library and information communication technology needed to facilitate their legislative duties effectively. In addition , there is no enough office facilities for individual members of the parliament which stands as an obstacle in the performance of their legislative duties.

However, these difficulties can be overcome by structural changes which simply means change in the way they performed most of their functions as well as changes in the system to enable them performed better. Most of these difficulties had their root cause in the lack of parliamentary autonomy which emanate from the defect in their constitution . With a view to overcome these difficulties, there is need for the amendment of the constitution in a such a way that it will guarantee the legislature autonomy particularly in the areas of financial autonomy such that their funds will come from the first line charge that is from the consolidated revenue fund, so that the parliament will no longer be going to the executive to asked for funds to perform their legislative duties, because as the saying goes he who plays the piper dictate the tune.

As soon as the issue of financial autonomy is sorted out, they will be able to organize a capacity building programs for their staff, bring in expert from the various field such as the academia to enhanced their legislative duties, provide themselves with the necessary resources such as the building of library and information communication technology, as well as the provisions of office facilities to individual members of the parliament to enhance their legislative duties.

Answer:

Information push.

Explanation:

The push information broadcast technique, corresponds to the act of anticipating a message to the user, that is, it is the sending of unsolicited information, it occurs from the sender to the recipient. It is common to use written media to perform this technique, such as emails, letters, memos, reports and others.

Some disadvantages of sending information is that despite ensuring the distribution of information, there is no certification that the message was delivered and understood effectively by the sender.

Answer:

Explanation:

The categorization is presented below:

Item                      Income Statement/ Balance Sheet         Category

Accounts receivable           Balance sheet                            Current assets

Retained earnings               Balance sheet                            Shareholder equity

Income tax expense           Income statement                      Expense

Accrued expenses             Balance sheet                            Current liabilities

Cash                                    Balance sheet                             Current assets

Selling and administrative expenses Income statement      Expense

Plant and equipment          Balance sheet                             Fixed assets

Operating expenses           Income statement                      Expense

Marketable securities         Balance sheet                            Current assets

Interest expense                Income statement                      Expense

Sales                                    Income statement                     Revenue

Notes payable (6 months)  Balance sheet                           Current liabilities

Bonds payable, maturity 20 years Balance sheet               Long term liabilities

Common stock                      Balance sheet                           Shareholder equity

Depreciation expense          Income statement                      Expense

Inventories                             Balance sheet                            Current assets

Capital in excess of par value  Balance sheet                         Shareholder equity

Net income earnings after taxes) Income statement              None

Final answer:

Explanation of whether items belong to the balance sheet or income statement, along with their respective categories.

Explanation:

Accounts receivable: Balance Sheet - Current Assets

Retained earnings: Balance Sheet - Equity

Income tax expense: Income Statement

Accrued expenses: Balance Sheet - Current Liabilities

Cash: Balance Sheet - Current Assets

Selling and administrative expenses: Income Statement - Operating Expenses

Plant and equipment: Balance Sheet - Fixed Assets

Operating expenses: Income Statement

Marketable securities: Balance Sheet - Current Assets

Interest expense: Income Statement

Sales: Income Statement

Notes payable (6 months): Balance Sheet - Current Liabilities

Bonds payable, maturity 20 years: Balance Sheet - Long-Term Liabilities

Common stock: Balance Sheet - Equity

Depreciation expense: Income Statement

Inventories: Balance Sheet - Current Assets

Capital in excess of par value: Balance Sheet - Equity

Net income: Income Statement - Earnings after Taxes

Answer:

$110,000

Explanation:

Net value of assets = Fair value of assets - Fair value of liabilities

                                 =  $770,000 - $190,000

                                 = $580,000

Fair value of goodwill:

= Purchase price - Net value of assets

= $690,000 - $580,000

= $110,000

Therefore, the amount of goodwill acquired by Flounder is $110,000.

Answer:

By completing form 8888 from tax application

Explanation:

When applying for tax refund, you can transfer your amount into 2 or 3 separate accounts. If you want to split your refund then you need to complete form 8888 and attach it with tax return. This form tells IRS, in which accounts and how much you want to deposit through refund.

Answer: SEC –Securities and Exchange Commission and FASB –Financial Accounting Standards Board.

Explanation: The two primary organizations are SEC –Securities and Exchange Commission and FASB –Financial Accounting Standards Board.  

FASB is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States. It was formed in 1973 to succeed the Accounting Principles Board and carry on its mission.

While the U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government. The Securities and Exchange Commission (SEC) recognizes the FASB as the accounting standard setter for public companies. It is also recognized by state accounting boards, the American Institute of Certified Public Accountants (AICPA), and other organizations in the field.

The two primary organizations in the United States responsible for setting accounting standards are FASB for the private sector and GASB for governmental entities.

The two primary organizations in the United States responsible for setting accounting standards are the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).

FASB is responsible for establishing generally accepted accounting principles (GAAP) for public and private companies, ensuring consistency and transparency in financial reporting.

It plays a crucial role in maintaining the integrity and reliability of financial statements for businesses.

GASB, on the other hand, focuses on setting accounting standards for state and local governments and governmental entities.

It ensures that financial reporting in the public sector is transparent, consistent, and useful for decision-makers, promoting accountability and responsible fiscal management.

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Final answer:

Candor in communication promotes trust, supports a free exchange of ideas, and sets clear expectations, which are all significant benefits that contribute to a healthier, more transparent, and more effective workplace.

Explanation:

Learning to communicate with candor can be challenging, but it brings numerous benefits to an organization, making the effort to develop clear and open communication worthwhile. Several benefits to using candor in communication include:

Emphasizing these benefits can help justify the need to break old habits and adopt more candid communication styles in the workplace. Remember, effectively utilizing these communication skills can enhance collaboration, improve decision-making, and build more robust team dynamics.

Final answer:

Candor in communication ensures employees feel comfortable speaking freely, reduces dissent by providing clarity on acceptable ideas, and promotes a beneficial exchange of ideas leading to organizational learning and innovation. Ethical and forthright communication prevents misunderstandings and increases job satisfaction and employee morale.

Explanation:

The benefits of using candor in communication are numerous and significantly contribute to a more effective and engaged workplace. Among the options provided, the following are benefits that make the effort to communicate with candor worthwhile:

It is important to note that although candor might initially slow decision making, the resulting decisions are often more well-thought-out and can improve long-term outcomes. Ethical and forthright communication within a company can prevent misunderstandings, increase job satisfaction, and boost employee morale. This can ultimately lead to improved performance and an increase in market value. Option B , C and D are correct .

The correct statement is that the closing balance of shareholder's equity in the books of Jay Co. will be $327,300.

The computation of the total stockholder's equity can be calculated by adding any incomes to the opening balances and deduction of reissued securities.

Hence, the total stockholder's equities at the end of the year in the books of Jay Co. is $327,300.

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Answer:

Jess receives one-half of the estate, and Kato and Lars each receive one-fourth

Explanation:

The question is complete but phrased incorrectly as the options are not separated.

The question involves inheritance law and the distribution of an estate per stirpes. In the scenario provided, Jess would receive one-half, Kato one-fourth, and Lars one-fourth of the estate if it were distributed per stirpes. The response incorporates historical aspects of inheritance, such as the practice of older siblings receiving a double portion and the impact of the Code Civil on equal inheritance sharing.

The scenario presented in the question deals with the distribution of an estate per stirpes, which is a legal concept in inheritance law. This method of distribution means that each branch of the family inherits an equal share of an estate. If Grey had distributed his estate per stirpes, then each grandchild would receive a share equivalent to that which their parent would have received if still alive.

In this case, if Grey had two children, Ham and Ivy, and Ham was survived by one child (Jess) while Ivy had two (Kato and Lars), and if Grey's estate was to be distributed per stirpes, then Ham's branch (represented by Jess) would receive one-half of the estate, and Ivy's branch (represented by Kato and Lars) would receive the other half, which would be divided equally between the two, resulting in one-fourth of the estate for each.

However, if there was a different direction in Grey's will, such as leaving everything to Jess, then the other grandchildren would not receive an inheritance unless specified by local laws or other stipulations in the will. The passage also alludes to historical perspectives on inheritance, including those from the Code Civil and earlier practices like older brothers receiving a double portion.

Jack's interpersonal communication skills failed, negatively impacting the work environment and teamwork. His misstep could result in formal complaints and reduced productivity.

In the scenario described, Jack's interpersonal communication skills failed. These skills are especially important for creating a supportive work environment and fostering effective teamwork. Rather than publicly scolding Samantha, a more professional approach would have been to address the issue in private, offering constructive feedback and seeking understanding about the reasons for her tardiness. The larger implications of his actions disrupt the office atmosphere, erode trust, and diminish team cohesion, which can lead to formal complaints and a decrease in overall productivity.

These interpersonal skills are fundamental for any professional setting as they help in maintaining respect, professionalism, and confidentiality. For example, in another scenario, an employee who understands the importance of these skills might speak in person with a colleague who is falling behind on project deadlines rather than embarrassing them in front of others or resorting to unprofessional email communications.

Answer:

See explanation section

Explanation:

1. How much will the economy grow next year? - This is a macroeconomic issue. Macroeconomic deals with the economy as a whole. It also deals with the large-scale structure and performance of an industry, behavior, and decision making of a country. Macroeconomic issues include global or national economies. Since the question is about whether an economy grows, it is about entire country's economy.

2. Why do economics majors earn more than marketing majors? - Microeconomics issue. Generally, microeconomics issues deal with the individual level and firm-level decision-making. Since the question does not involve whole the industry or economy, it is a microeconomics issue. Instead the question is about whether the major of economics students earn more or less. It is only about an individual level topic.

3. How does Apple decide how many iPads to produce? - Microeconomics issue as we are talking about only Apple company. Since it is an individual level economics, it is micro issue.

4. Why does the unemployment rate increase during a recession? - As the question is related to a country's unemployment, it deals with the overall economy. So, it is Macroeconomic issue. Unemployment generally covers the whole economy of a country because it suggests how many people are unemployed in an economy.

5. What happens to prices when the government increases the money supply? - Macroeconomic issue as money supply is for the whole economy. Money supply is the total value of a country's economy. Therefore, money supply is a macroeconomic-related topic.

6. Which company’s stocks should your mother buy? - Microeconomics issue as your mother will not purchase all of the company's stock. It is an individual level purchase. It means only one person will purchase the stock, which is a microeconomics issue.

7. Should the government pass a jobs bill to stimulate the economy? - Again, If anything is related to the large-scale and whole economy, it will be a macroeconomic issue. Since the government should pass the bill to stimulate economy which is for the country's economy, it is a macroeconomic issue.

8. Why does the price of gasoline increase during the summer? - Only the price of gasoline and not other petroleum related products, so it is a microeconomics issue. It is not for the large-scale and industry level issue. Instead it is only a part of a petroleum corporation.

Microeconomics deals with individual actions and decisions, while macroeconomics evaluates the economy as a whole. The questions provided can be categorized into these two areas, with questions about individual earnings, business production decisions, and consumer choices being microeconomic, and those concerning economic growth, unemployment, and government policy being macroeconomic.

Economics is a vast field that can be divided into two main areas: microeconomics and macroeconomics. Microeconomics focuses on the actions and decisions of individual agents, such as households and businesses, while macroeconomics analyzes the economy as a whole, including issues like growth, unemployment, and inflation.

Reviewing the list provided, the classification is as follows:

Macroeconomic issues:

How much will the economy grow next year?

Why does the unemployment rate increase during a recession?

What happens to prices when the government increases the money supply?

Should the government pass a jobs bill to stimulate the economy?

Microeconomic issues:

Why do economics majors earn more than marketing majors?

How does Apple decide how many iPads to produce?

Which company’s stocks should your mother buy?

Why does the price of gasoline increase during the summer?

Each question reflects either the narrow focus of individual agents and choices in microeconomics or the wide lens on the collective economy in macroeconomics.

Answer:

"B"

Explanation:

Depreciation is a practice of systematic allocation of the cost of an asset to the income generated over its useful life time , either on a straight line method or reducing balance.

As demanded by the matching concept of accounting , revenue are expected to be linked to associated expenses otherwise profit will end up being overstated and and management misinformed and wrong decisions likely to be taken

The periodic recording of depreciation expense is justified by the systematic and rational allocation of cost over the periods benefited, reflecting the asset's use in generating revenue.

The justification for the periodic recording of depreciation expense in accounting is the systematic and rational allocation of cost over the periods benefited (option b). This principle is an application of the matching principle, which aims to match expenses with the revenues they generate in the same period. Depreciation allows businesses to spread the cost of a tangible asset over its useful life, reflecting its consumption or the loss of value as the asset is used to generate revenue. This is not intended for the immediate recognition of an expense, nor primarily for the minimization of income tax liability, although it may have that effect.

Answer:

O longer product life cycles

Explanation:

Product made today are short-lived, their life cycle is always very short compare to the product made in the past. the product life cycle is the space of time from the time a product if first introduced into the market and the time it will no longer enjoy patronage and it will eventually disappear from the market.

The shorter product life cycles characterized by today's product is due to increase in competition and constant change in technology.

Answer: The correct answer is "a. Employees may choose not to follow orders.".

Explanation: The statement "Employees may choose not to follow orders." is not consistent with the lassical perspective on management

One of the principles of the classic management perspective is: Discipline: Establishes that employees must act with obedience, dedication, energy, behavior and respect for established norms.

Therefore, employees must necessarily follow orders.

Explanation:

When we see the objective given in the question, the company is really interested to make positive cash flows and make the shareholders to get back good results. By looking at the goal, Option A stands right.

An asset value is determined only by the market. For example, if you have an flat for sale, the rate of flat is determined only by the market. So considering this example Option 1 matches for the second question.

Answer and Explanation:

The following theories of profit best explain the profits of pharma companies:

1. Risk bearing - The theory says the higher the risk, the higher the rewards. The pharma companies take huge risks in inventing a new drug, having trials and the getting FDA approvals.

2. Monopoly - If a new drug is approved, the pharma company gets a patent over it, which means that it will have an effective monopoly on that segment of the market.

3. Innovation - it states that innovation is what keeps a company ahead. And pharma industry is built on innovation. Pharma companies have to continuously find new drugs because once patents run out on existing drugs, there are no profits to be made.

Answer:

Following Becky's estimation, the bad debt expense must be equal than the 8% of the total credit, less the value already booked in the balance sheet accounts (doubtful accounts).

Explanation:

In this case, 2,000,000*8%=160,000. Then this 160,000 must be subtracted to 2,200 (160,000-2,200=157,800). Finally, the bad debt expense to be reported is $157,800