Answer: double coincidence of wants
Explanation:
Coincidence of wants simply refers to a situation whereby two parties have something that the other person wants, therefore they then exchange the products they have. It should be noted that no financial compensation is involved. This simply has to do with trade by barter.
If William performs plumbing upgrades for Patricia in exchange for her incorporating his business, then their double coincidence of wants will be satisfied.
Answer:
a. $225, 000
b. $900, 000
c. $140, 000
Explanation:
Ralph Mini-Mart Store in Alpine:
(a) Beginning inventory: this is the value of inventory on hand at the beginning of the financial year. This is the value is the same as the value of ending inventory at the end of the previous financial year. This value includes the value of the inventory and any costs that were incurred to bring the inventory to the organization’s store house.
For Ralph Mini- Mart, beginning inventory = $225, 000 (refer to item 5)
(b) Transfers- In: this is the inventory that was purchased during the financial year. This value will include the cost of the inventory and any other costs that were incurred to bring the inventory to the store house of Ralph’s Mini – Mart. In this instance, the additional cost is the transportation cost of $30, 000 that was incurred to transport the inventory from the supplier to the warehouse.
For Ralph’s Mini – Mart, the Transfers – In = $870, 000 + $30, 000 = $900, 000 (refer to item 3 and 4)
(c) Ending balance: the ending balance is the value of inventory at the end of the financial year. This is the value of inventory that Ralph’s remains with after purchasing inventory from suppliers and selling inventory to customers. This value will take into account any inventory write- downs and obsolescence. In this instance, there has been no inventory write- downs and no inventory obsolescence or thefts.
For Ralph’s Mini – Mart, the value of ending inventory = $140, 000 (refer to item 5)
Answer:
The Year 4 cash flow is $33,348.
Explanation:
The Year 4 is the last year of the project.
In this year we have:
- Income: +$48,000.
- Working capital recovery: +$3,900
- Equipment sale: +$5,460
- Equipment book value: -$4,380
To calculate the tax, we apply the tax rate to the income and to the sale profit (difference between the market value and the book value of the equipment):
![Tax=0.40*[48,000+(5,460-4,380)]\\\\Tax=0.40*(48,000+1,080)\\\\Tax=0.40*49,080=19,632](https://tex.z-dn.net/?f=Tax%3D0.40%2A%5B48%2C000%2B%285%2C460-4%2C380%29%5D%5C%5C%5C%5CTax%3D0.40%2A%2848%2C000%2B1%2C080%29%5C%5C%5C%5CTax%3D0.40%2A49%2C080%3D19%2C632)
- Tax: -$19,632
Then, we can calculate the Year 4 cash flow:
I think it’s A or B not sure tho
