Answer:
$ 365,000
Explanation:
Given data:
The operating expenses for the year = $ 400,000
Increase in the accrued expenses = $ 35,000
Now,
the cash payment for the operating expenses will be calculated as the difference of the operating expenses and the increase in accrued expenses
thus,
mathematically,
cash payment for the operating expenses = operating expenses - increase in accrued expenses
on substituting the values in the above formula, we get
cash payment for the operating expenses = $ 400,000 - $ 35,000
or
cash payment for the operating expenses = $ 365,000
Leasing allows business owners to forecast cash flows more ACCURATELY, because lease payment are FIXED amount paid over a particular time period.
Leasing involves paying a specified amount of money monthly or yearly for use of a particular landed property. Leasing fees are usually fixed in amount and this allows one to accurately calculate how much money one can expect from this source of revenue.
Answer:
9.4%
Explanation:
Initial investment=$22,000+$22,000=$44,000
number of shares bought=$44,000/$110(the investor paid $55 out of every $110)
number of shares bought=400
Increase in share in one year=$110*8%=$8.80
loan interest on each share=$55*6.6%=$3.63
rate of return=(increase in share price-loan interest)/initial amount invested
rate of return=($8.80-$3.63)/$55
rate of return=9.4%
