Answer:
Let's assume that "X" be the number of employees in 2000.
∵ it's given :
From 2000 to 2003: the number of employees increased by a factor of 1/4
From 2003 to 2006: the number of employees decreased by a factor of 1/3
∴ We can equate the following details:
X×(increase in employee)×(decrease in employee) = 100
X×(
)×(
) = 100
X×(
)×(
) = 100
X×(
) = 100
X = 100×(
)
<em>X = 120 </em>
<u><em>Therefore, the correct option is (b)</em></u>
Answer:
Present value (PV) = $1,000
Interest rate (r) =8% = 0.08
Number of years (n) = 18 months = 1.5 years
No of compounding periods in a year = 4
Future value (FV) = ?
FV = PV(1 + r/m)nm
FV = $1,000(1 + 0.08/4)1.5x4
FV = $1,000(1 + 0.02)6
FV = $1,000 x 1.1262
FV = $1,126
Explanation:
The amount to be received in 18 months is $1,126. This is obtained by compounding the present value at 8% compounded quarterly for 18 months. The formula to be applied is the formula for future value of a lump sum(single investment).
Answer:
Explanation:
W1= 30 W2 =50
Q1 = 6 Q2 = 16
Elasticity of supply = (16-6) / (50-30) * (50+30) / (6+16)
= (10/20) * (80/22) =80/44= 1.82
Answer:
a. Sale of Common Stock.
Classification: Financing activity
b. Sale of Land
Classification: Investing activity
c. Purchase of Treasury Stock
Classification: Financing activity
d. Merchandise Sales
Classification: Operating activity
e. Issuance of a long-term note payable
Classification: Financing activity
f. Purchase of merchandise
Classification: Operating activity
g. Repayment of note payable
Classification:
Financing activity
h. Employee salaries
Classification: Operating activity
i. Sale of equipment at a gain.
Classification: Investing activity
j. Issuance of bonds
Classification: Operating activity
Question Completion:
A building owned by Hopewell Company was recently valued at $850,000 by a real estate expert.
Answer:
Book Value and Fair Value
There is a difference between the book value and the fair value of an asset. The book value is based on the asset's historical cost. The fair value is the current market price of the asset. In reporting long-term assets, the acceptable basis is the historical cost or the cost of acquiring the asset. This cost is further reduced by annual depreciation charges. The fair value is not often the acceptable basis for reporting long-term assets unless the entity is no longer a going concern or the asset has suffered an impairment loss.
Explanation:
a) Data and Calculation:
Fair value by a real estate expert = $850,000
Book value (historical cost) = $550,000
Difference between fair value and book value = $300,000
