Answer:
consumer income rises; pizza dough decreases in price
⇒ output increases; price uncertain
- higher consumer income results in higher prices
- but decrease in the price of inputs results in lower prices
- both result in higher output
consumer income falls; pizza dough decreases in price
⇒ price decreases; output uncertain
- both result in lower prices
- falling consumer income result in lower output
- decrease in the price of inputs results in higher output
consumer income falls; cheese increases in price
⇒ output decreases; price uncertain
- both lower output
- falling consumer income decreases price
- increase in price of inputs increases price
consumer income rises; cheese increases in price
⇒ price increases; output uncertain
- both increase price
- rising consumer income increase output
- increase in price of inputs decreases output
Answer:
$2,800
Explanation:
A company purchased a new truck at the price of $29,400 on January 1, 2019.
The estimated useful life of truck is 200,000 miles.
The salvage value is $1,400
The truck was driven for 20,000 miles in 2019
Therefore, assuming the units-of-production depreciation, 2019 depreciation expense can be calculated as follows
= (price of truck-salvage value/estimated useful life) × number of miles driven by the truck
= ($29,400-$1,400/200,000) × 20,000
= ($28,000/200,000) × 20,000
= 0.14×20,000
= $2,800
Hence the depreciation expense for the year 2019 is $2,800
Answer:
b. NPV < 0
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
The decision rule is invest if IRR > required rate of return and don't invest if IRR < required rate of return.
The net present value is the present value of after tax cash flows from an investment less the amount invested.
The decision rule is invest if NPV > 0 and don't invest otherwise.
The payback period measures how long it takes to recover the amount invested in a project from its cumulative cash flows.
There is no set acceptable pay back period. It is usually set at the discretion of firms.
The profitability index is the present value of a projects cash flows divided by the cost of investment.
The decision rule is invest if PI > 1 and don't if its otherwise.
For a project where the initial cash flow is negative and where all subsequent cash flows are positive, the NPV and IRR would agree.
From the question the IRR is less than the required rate of return which means the project shouldn't be embarked on. When the NPV is calculated, the same conclusion should be reached. So, the npv should be less than zero.
I hope my answer helps you
Answer:
$15,000
Explanation:
Given that,
Credit balance in Unearned Revenue account = $10,000
Advance payment by a customer = $12,000
Revenue earned during January = $7,000
Balance in unearned revenue:
= Credit balance in Unearned Revenue account + Advance payment by a customer - Revenue earned during January
= $10,000 + $12,000 - $7,000
= $15,000
Therefore, the balance in Unearned Revenue on January 31, 2019 is $15,000.
Answer:
Ccccc
Explanation:
Journal entries
Apr. 1
Dr Cash 18,360
common stock 18,360
Apr. 1
No entry
Apr. 2
Dr Rent expense 918
Cr Cash 918
Apr. 3
Dr Supplies 1,326
Cr Accounts payable 1,326
Apr. 10
Dr Accounts receivable 1,938
Cr Service revenue 1,938
Apr. 11
Dr Cash 714
Cr Unearned service revenue 714
Apr. 20
Dr Cash 2,856
Cr Service revenue 2,856
Apr. 30
Dr Salaries and wages expenses 1,532
Cr Cash 1,532
Apr. 30
Dr Accounts payable 306
Cr Cash 306