This is a good deal as present value at the given rate was more compared to investment.
Given:
[/tex]
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We know that,
Let assume number of compounding period per year,
n=1
(a-1)
Future value, FV=(a-2)[/tex]
This is a good deal as present value at the given rate was more compared to investment.
(b-1)[/tex](b-2)
This is a good deal as present value at the given rate was less compared to investment.
<h3>Explain Investment?</h3>
Investments are defined as assets bought or invested in with the goal of increasing wealth and setting aside funds from salary or capital gains. The main purpose of an investment is to create an additional source of income or to generate a profit over a certain amount of time.
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Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in the cash flows from investing activities section.
What is depreciation?
Depreciation is an accounting technique that distributes an asset's cost throughout its anticipated useful life. Depreciation is a recurring expense that businesses report on their income statement. Assets degrade with time, losing value.
Which activities are reported on the statement of cash flows?
Transactions must be divided into the three categories of operating, investing, and financing activities that are shown on the statement of cash flows.
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Answer:
see below
Explanation:
<u>1. COGS</u>
Expenses incurred for manufacturing or obtaining the products and materials sold during a given period.
COGS are the direct expenses in the production process. They include labor, materials, and direct overheads.
<u>2. Gross profit </u>
Balance arrived at after deducting the expenses incurred on the goods sold from the revenue earned by selling the goods.
The revenues must exceed the expenses for a business to realize a gross profit. Otherwise, it will be a loss.
3<u>. Operating expenses</u>
Expenses that a business incurs to carry out its daily operations. They are the indirect cost of production. Examples include insurance, administrative, and security costs.
4. <u>Selling expenses </u>
Money spent on advertising, traveling, and promotions. These are the costs incurred in the selling process.