A: $4,161
B: $3,285
C: $876
D: None, all expected returns from warranties have been received.
($570 * (10%) * $73) - (12 * $73) = $3,285
Warranty Liability at the
end of the year = $3,285
Talks-A-Lot, Inc. sells cell phones to customers and expects that 10% of phones sold will be returned for repair under its warranty program. The average repair cost is $73 per phone. For 2021, Talks-A-Lot has sold 570 cell phones and has repaired 12 of th
Question No: 1The overall (weighted average) cost of capital is composed of a weighted average of :a)The cost of common equity and the cost of debtb)The cost of common equity and the cost of preferred stockc)The cost of preferred stock and the cost of debtd)The cost of common equity, the cost of preferred stock, and the cost of debtQuestion No: 2Which of the following is a characteristic of preferred stock?a)These stocks have not stated liquidating valueb)Dividends on these stocks can...