Answer:
what are you even talking about?
The service Revenue will be:
1. Cash for service performed in 2021 -------------------------- $13,500
2. Bill sent to clients for service performed in 2021--------- $4,100
TOTAL------------------------------------------------------------------------$17,600
The $5,100 received was for the service done in 2020 and this will be decrease the account receivables on the balance sheet while the $2,100 received for work to be done in 2022 will be recorded as an unearned revenue because the service has not been rendered.
Answer:
Explanation: when the total number of customers *increases*, in order to serve the increased number of customers, it needs to be done *faster* in order not to keep other customers waiting for too long. And also this increased customer patronage would increase as well, the number of cars driving through the drive way
Answer:
Net Capital Spending = $121
Explanation:
The Net Capital Spending is the amount of money a company spends in the acquisition of fixed assets during the year. Mathematically, it is represented as:
Net Capital Spending = Ending net fixed asset - Beginning net fixed asset + depreciation
Net Capital Spending = 550 - 471 + 42 = $121
∴ Net Capital Spending = $121
<span>If you take the question very literally, you have just joined the organisation and been offered two options. The present value of each is still $0 as you have not yet selected either or received any payment. However, assuming the question is aimed at establishing which option is better over the two year period, the following explanation applies.
Salary arrangement 1 is 7,400 monthly for 24 months
Assuming the whole salary is invested each month, and the annual interest rate is 6%, and that it is paid at the start of each month then the following formula will apply:
Present value = previous value + (previous value * interest rate) + monthly payment
Using this formula for a 24 month period results in present value of $188,196.47
Salary arrangement 2 is 33,000 initially and 6,100 monthly for 24 months
Using the same assumptions as above, and the same formula for 24 month period results in present value of $191,692.01
The main difference is the initial payment which is accruing interest throughout the period and therefore salary arrangement 2 results in a higher present value.</span>
