no matteehow much times i read this is still cant process this
Answer:
Total increase in pretax earnings on Summer’s December 31, 2019, income statement is $20,253
Explanation:
Fair value of asset sold on lease = Present value of lease payments = $50,000 * Cumulative PV factor at 6% for 8 periods of annuity due
= $50,000 * 6.20979
= $310,490
Interest income for 2019 = ($310490 - $50,000) * 6% = $15,629
Total increase in pretax earnings on Summer’s December 31, 2019, income statement = $310490 - $300,000 + $15,629 - 5866 = $20,253
Answer:
$850
Explanation:
Data provided in the question:
Initial investment = $15,000
Expected annual net cash flows over four years, R = $5,000
Return on the investment = 10% = 0.10
Present value of an annuity factor for 10% and 4 periods, PVAF = 3.1699
The present value of $1 factor for 10% and 4 periods = 0.6830
Now,
Net present value = [ R × PVAF ] - Initial investment
= [ $5,000 × 3.1699 ] - $ 15,000
= $15,849.50 - $ 15000
= $849.50 ≈ $850
Answer:
Annual Financial advantage $ 550
Explanation:
<u>Computation of income/loss on special order</u>
Unit product costs
Normal product costs $ 19.20
Incremental variable costs $ 1.30 per unit <u>$ 1.30</u>
Total product costs $ 20.50
Revenues per unit <u>$ 26.00</u>
Profit per unit $ 5.50
Sales Units 2,100 units
Total incremental profit on order $ 11,550
Less; cost of moulds <u>$ 11,000</u>
Incremental profit on S 47 order $ 550
Answer:
The answers are Horizontal and Vertical respectively.
Explanation:
Horizontal integration refers to the expansion strategy adopted by the corporations which involves acquisition of one company by another company where both the companies are in the same business line and at same value chain supply level, whereas, Vertical integration refers to the expansion strategy adopted by the corporations where one company acquire another company who is at the different level, usually at the lower level of its value chain supply process.