A balance sheet is a summary of all of your business assets (what the business owns) and liabilities (what the business owes). At any particular moment, it shows you how much money you would have left over if you sold all your assets and paid off all your debts (i.e. it also shows 'owner's equity').
Answer:
1000
Explanation:
The economic order quantity is given by the formula = Square root of [ (2 * D * S ) / (H) ]
D = Annual Demand = 2000*6=12000 numbers (six rotor for each pump)
S = Unit Order Cost = $ 250 / order
H = Inventory Holding Cost = 10% of Unit Cost = 10% of 60 = $ 6
The economic order quantity is given by the formula = Square root of [ (2 * D * S ) / (H) ]
Economic Order Quantiity = Squareroot of { (2 * 12000 * 250) / (6) }
Economic Order Quantiity = Squareroot of { 1,000,000 }
Economic Order Quantiity = 1000 numbers.
Answer:
Accounting profit is the difference between total revenue and accounting cost in which the accounting cost is containing only the explicit cost incurred. Economic profit is the difference between total revenue and total opportunity cost, the latter containing both the explicit cost and the implicit cost incurred.
Accounting profit = revenue - explicit cost
Accounting profit = 125,000 - (10000 + 20000)
Accounting profit = 95,000
Economic profit = accounting profit - implicit cost
Economic profit = 95,000 - (75000 + 5000)
Economic profit = 15,000
This implies that while accounting profit does not undertake implicit cost of economic activity (cost for which no explicit payment is made separately), economic profit does deduct them. Now economic profit is positive, Jolene should open Little Barks.
Answer:
Explanation:
(a) HPR = Ending Price - Beginning Price + Cash Dividend / Beginning Price
a. The holding period returns for the three scenarios are:
Boom: (48 - 40 + 2.8)/40 = 0.27 = 27%
Normal: (43 - 40 + 1.8)/40 = 0.120 = 12.0%
Recession: (34 - 40 + .90)/40 = -0.1275 = -12.75%
= [(1/3) × 0.27] + [(1/3) × 0.120] + [(1/3) × (-0.1275) =0.08750 or 9%
Variance = [(1/3) × (0.27 - 0.08750)^2] + [(1/3) × (0.120 - 0.08750)^2] + [(1/3) × (-0.1275 - 0.08750)^2] = .026863
Std. Dev = Sq. Rt .026863 = .16390 = 16.39%
(b) E(r) = (0.5 × 8.75%) + (0.5 × 5%) = 6.88%
σ = 0.5 × 16.39% = 8.19%
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