Answer:
d. $4,800,000
Explanation:
Gross Rent Multiplier (GRM) = Property Value / Annual Gross Rents
Annual Gross Rents X Gross Rent Multiplier (GRM) = Property Value
So, According to given formula
Gross Rent = $600,000
Gross Rent Multiplier (GRM) = 8
Building Value = Gross Rents X Gross Rent Multiplier (GRM)
Building Value = $600,000 X 8
Building Value = $4,800,000
<span>New product strategy. This is a rather risky move to make but many small businesses do this when it fits in with their existing set up including distribution and sales. The key thing with this strategy is that he needs to know his market and needs to understand his current set up for creating, distributing, and the sales of his current products and how a new product will fit into this and is there a product that potentially fit better.</span>
Answer:
d. inventory is sold at a profit
Explanation:
Net working capital increases when <u>inventory is sold at a profit</u>
Net working capital = Current Assets - Current Liabilities
. Cash, Inventory and receivables are part of current assets
Hence, when inventory is sold at profit, cash received is more than decrease in inventory and hence, current asset increase and hence, working capital increases. When it is sold at cost, it remains the same. Purchase of inventory on credit will lead to same amount increase in current assets and current liabilities. Payment by customer will lead to increase in cash and decrease in accounts receivable, Hence, no impact
Answer:
$92,400
Explanation:
Supplies expense for 2020 would be calculated as;
= Ending balance in supplies account on December 31, 2019 + Payment for new supplies in 2020 - Balance in supplies account at the end of year 2020
Given that ;
Ending balance in supplies account = $48,400
Payment for new supplies = $86,000
Balance in supplies account at the end of year 2020 = $42,000
Therefore,
Supplies expense for 2020
= $48,400 + $86,000 - $42,000
= $92,400
