Answer: Josh's bonus is $35,289.53.
In the question above, we need to look at the net savings that will occur from selling drinks instead of giving them as complimentary drinks. So we have,
Net Savings per year = $11.04 million
The company's MARR = 15%
Josh's bonus is 0.14% of the present value of three years' net savings.
Since the quantum of savings is constant each year, we can calculate the present value of these savings by using the Present Value of annuity formula.
![PVA = P * \left [\frac{1-(1+r)^{-n}}{r} \right ]](https://tex.z-dn.net/?f=%20PVA%20%3D%20P%20%2A%20%5Cleft%20%5B%5Cfrac%7B1-%281%2Br%29%5E%7B-n%7D%7D%7Br%7D%20%5Cright%20%5D%20)
PVA = Present value of three years' net savings = 25.20680529
million
Josh's bonus : 0.14% of present value of three years' net savings.
Josh's Bonus = $0.035289527
million or $35,289.53.
Answer:
A) $97,600
Explanation:
Calculation for the net cash provided or used by operating activities
OPERATING ACTIVITIES
Net Income $86,800
Depreciation Expense 13,500
Gain on Sale of Land (6,800)
Increase in Merchnadize Inventory (3,550)
Increase in Accounts Payable 7,650
Net Cash provided by Operations $97,600
Therefore the net cash provided or used by operating activities will be $97,600
Answer:
True
Explanation:
The single-use plan is a set of activity that is specifically designed to achieve a specific goal. In the above example, the Ruby manufacturing company has planned to build its new factory with the sole purpose to include offices. This is a single-use plan because the only reason to build a new factory is to make space for the offices.
