Business analysis phase of the new product development process
Answer:
The correct answer is B
Explanation:
The journal entry to record the sale of the subscription is as:
Cash A/c.............................................................Dr $600,000
To Unearned Subscription Revenue A/c..........Cr $600,000
As company made a sale of the subscription, so cash is received from sale therefore any increase in asset is debited. So, the cash account is debited. And the unearned subscription revenue is credited because cash is received against subscription sale.
Answer:
<u>revenues = 1,201,100</u>
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Explanation:
beginning 421,000
+net income (revenues - 1,204,000)
- dividends 82,100
ending 336,000
421,000 + (r-1,204,000) - 82,100 = 336,000
revenues = 336,000 + 82,100 + 1,204,000 - 421,000
<u>revenues = 1,201,100</u>
Answer:
I will accept the offer if the price per painting is $56,312.41 or higher.
Explanation:
We will calculate the present value of the other option which is, selling our painting as a freelancer.
C 315,000.00
time 5
rate 0.2
PV $942,042.8241
Now, we subtract the signing bonus of 100,000
942,042.83 - 100,000 = 842,042.83
And solve for the annual proceeds from the painting we need to equalize the opportunity cost:
PV 842,042.83
time 5
rate 0.2
C $ 281,562.03
Now, we divide by the 5 painting per year:
$281,562.03 per year / 5 painting per year = $56,312.41