Answer:
$73,000
Explanation:
Equipment net book value (NBV) = $80,000 - $60,000 = $20,000
Loss on sale of equipment = NBV - Sales proceed = $20,000 - $17,000 = $3,000
Net operating cash flows for 2019 = Net income - Loss on sale of equipment = $76,000 - $3,000 = $73,000
Answer:
partial measure
Explanation:
Based on the information provided it can be said that the kind of productivity measure that can be used would be a partial measure. Partial Productivity measure relates output to a single input unit. For example, capital productivity deals with output per unit of capital while energy productivity relates output per joule of energy used. In this scenario, we would need labor productivity which is output per hour worked.
$10,000 increase in Treasury Stock is the effect of this transaction.
<h3>
What is cost method?</h3>
The cost method exists as a method of accounting. It is utilized for recording precise investments in a company's financial statements. This particular method lives used when an investor has little or no effect over the investment that they own.
The cost method of accounting is used for recording particular investments in a company's financial statements. This method is used when the investor exercises little or no influence over the acquisition that it owns, which exists typically represented as owning less than 20% of the company.
Treasury stock stands also known referred to as treasury shares and it happens when stock stands bought by the issuing company back from the stockholders.
This results in a reduction in the whole number of outstanding shares that can be found on the open market. In the above scenario, since Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000, this will get about a $10,000 gain in the treasury stock.
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Answer:
Producer surplus is
- D. the difference between the lowest price a firm would be willing to accept and the price it actually receives.
How does producer surplus change as the equilibrium price of a good rises or falls?
- As the price of a good rises, producer surplus <u>increases</u>, and as the price of a good falls, producer surplus <u>decreases</u>.
Explanation:
Producer surplus refers to the difference between what a supplier or producer is willing and able to accept for their goods or services, and the actual price of those goods and services. If the supplier is willing to accept $2 per unit, but is able to sell them at $3 per unit, the supplier or producer surplus = $3 - $2 = $1
Answer:
a.
WACC = 0.07961 or 7.961% rounded off to 7.96%
b.
After tax cost of debt = 0.0474 or 4.74%
Explanation:
a.
The weighted average cost of capital or WACC is the cost of a firm's capital structure. To calculate the WACC, we multiply the weight of each component of the capital structure by the cost of that component. The components of capital structure can be one or all of the following namely debt, preferred stock and common stock.
The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- r represents the cost of each component
- D, P and E represents debt, preferred stock and common stock respectively
WACC = 0.15 * 0.06 * (1 - 0.21) + 0.1 * 0.05 + 0.75 * 0.09
WACC = 0.07961 or 7.961% rounded off to 7.96%
b.
The after tax cost of debt is calculated by multiplying the cost of debt by (1 - tax rate) to adjust for the tax advantage provided by debt as interest payments on debt are tax deductible.
After tax cost of debt = 0.06 * (1 - 0.21)
After tax cost of debt = 0.0474 or 4.74%
