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2 years ago

1- According to economist Milton Friedman which of the following is the main purpose of a business?

Business

1 answer:

Stells [14]2 years ago

8 0

Answer:

A mean purpose of business is to get profit

Explanation:

because in a business there is amount of money invested

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Coronado University sells 5,900 season basketball tickets at $210 each for its 12-game home schedule.

katen-ka-za [31]

Answer:

Explanation:

The journal entries are shown below:

a. Cash A/c Dr $1,239,000 (5,900 seasons × $210)

To Unearned basket ball tickets revenue $1,239,000

(Being the sale of the season tickets are recorded)

b. Unearned basket ball tickets revenue $103,250 ($1,239,000 ÷ 12)

To basket ball tickets revenue $103,250

(Being the revenue recognized)

7 0

3 years ago

Ginny Trueblood is considering an investment which will cost her $120,000. The investment produces no cash flows for the first y

velikii [3]

Answer:

The project should be rejected as the payback period of 3.97 years exceeds the required 3 years. So, the correct option is E

Explanation:

The table showing the discounted cash flows of each year:

Computing discounted payback as:

Discounted Payback = Number of years + (Initial Cost - Discounted Cash flow of year 1 + Discounted Cash flow of year 2 + Discounted Cash flow of year 3 / Discounted Cash flow of year 4)

= 3 + ($120,000 - $0 - $28,925.62 - $41,322.31 / $51,226.01)

= 3 + ($49,752.07 / $51,226.01)

= 3 + 0.97

= 3.97

Working Note:

Discounted Cash Flow is computed as:

Discounted cash flow = Cash Flow / (1 + r) ^ n

where

r is rate of return that is 10%

n is number of year

So,

For 1st year:

= $0 / (1 + 0.1) ^1

= $0

For 2nd year:

= $35,000 / (1 + 0.1) ^ 2

= $35,000 / 1.21

= $28,925.61

For 3rd year:

= $55,000 / (1 + 0.1) ^ 3

= $55,000 / 1.331

= $41,322.31

For 4th year:

= $75,000 / (1 + 0.1) ^ 4

= $75,000 / 1.4641

= $51,226.01

6 0

3 years ago

sing the preceding information, answer the following questions: (Note: Round your answers to the nearest millionth dollar.) • Wh

DedPeter [7]

Answer:

$20 million is expected to have cash balance at the end of the year.

$39 million is the maximum possible investment funds that company is expected to invest.

Yes it is true net cash flow is likely to decrease in the next quarter if the company allows customer to pay in 90 days instead of 60 days.

4 0

3 years ago

Rufus Inc. and Hardy Company are negotiating a nontaxable exchange of business properties. Rufus’s property has a $50,000 tax ba

Norma-Jean [14]

Answer:

Which party to the exchange must pay boot to make the exchange work?

Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.

How much boot must be paid?

$90,000 - $77,500 = $12,500

Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?

Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500

Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?

Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.

8 0

3 years ago

River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estat

AURORKA [14]

Answer:

The correct answer is b. a limitation-of-liability clause.

Explanation:

It is understood by pact of exemption of responsibility, the stipulation negotiated by the subjects of the obligation, directed to suppress the responsibility of the debtor in case of breach of the same.

The doctrine specialized in mountain law states that: "If a company organizes an activity and forces the participants to sign a document in which they assume full responsibility for what happens to them, it is of little use, the organizer is still responsible" . Although this statement must be expanded and nuanced, it can serve as a guide for what we will study next.

4 0

3 years ago