Answer:
a. $72,000
b. $0.36
c. $6,480
Explanation:
a. Depreciation cost = Cost of truck - Residual value
= $80,000 - $8,000
= $72,000
b. The depreciation rate = (Cost of truck - Residual value) ÷ Estimated total production
= ($80,000 - $8,000) ÷ 200,000 miles
= $72,000 ÷ 200,000 miles
= $0.36
c. The units-of-activity depreciation for the year per mile = Driven miles × Depreciation rate
= 18,000 × $0.36
= $6,480
Answer:
C. Depreciation
Explanation:
The Indirect method reconciles the Operating income to the Operating Cash flow by adjusting the following items (i) Non -Cash Items previously added or deducted from Operating Profit and (ii) Changed in Working Capital items. From the given options, only depreciation is added back as it was previously deducted from Operating Income.
Answer:
The maximum price that should be paid for one share of the company today is $54.895
Explanation:
The price of a stock that pays a dividend that grows at a constant rate forever can be calculated using the constant growth model of Dividend discount model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends. The formula for price today under this model is,
P0 = D1 / r - g
Where,
- D1 is the expected dividend for the next period or D0 * (1+g)
- r is the required rate of return
- g is the growth rate in dividends
SO, the maximum that should be paid for this stock today is:
P0 = 2.2 * (1 + 0.048) / (0.09 - 0.048)
P0 = $54.895 rounded off to $54.90
Answer:
Sports Merchandise
Explanation:
According to the situation that has been described in the question it can be said that the loss is suffered by Sports Merchandise. This is because a the seller of a good or product is liable for that product until the buyer purchases the product and decides to keep it. Which in this scenario since Sports Merchandise made a mistake on the product size and Quest decided not to accept the product then the responsibility and risk of loss remained with Sports Merchandise as the owner of the product.
Answer:
Correct answer is B that is <u>Indirect Organizational Pattern</u>
