A corporation needs sustainable income in order to cover all of its expenses in the long run.
What is Sustainable income?
Sustainable income represents the after-tax gain or loss on the impact of operations on a discontinued segment of business for a period.
Therefore, in the case of a discontinued operation, there is no sustainable income arising in the future as the segment of business is already discontinued and income, if any, is going to come only for the period of the discontinued operation. Income or expense from discontinued operations is a line of item in the income statement of a company below income from continuing operations and before the net income.
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<span>Student loans, which are given to those in college by the federal government, are most commonly known as the loans with the small interest rates. These loans are fixed rates and will not increase overtime, they just accumulate monthly untilt he loans are paid off. </span>
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Jack would like to have $1.25M to retire in 35 years. He will get $375,000 the day he retires.
He can deposit funds in a money market account which earns 6.5% interest per year, and he would like to make yearly deposits.
<u>First, we need to calculate the final value required:</u>
FV= 1,250,000 - 375,000= $875,000
Now, using the following variation of the final value formula, we can calculate the yearly deposit:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
FV= 875,000
n= 35
i= 0.065
A= (875,000*0.065) / [(1.065^35) - 1]= $7,054.48
The annual deposit is $7,054.48.
Answer:
The correct answer is "Continue producing 1000 units"
Explanation:
(In a perfect market)
When the price is = marginal cost. This means that if you increase your production, the benefits-profits will be the same as if you produce the same quantity.
When the Price > Marginal cost, means that consumers demand more for that good, so the producer has an incentive to increase the supply
When the Price < Marginal cost, means that production is higher than the consumer's demand. This is an incentive to decrease the supply.
For this case, the best option is to continue producing the same quantity of units, 1000 units
Answer:
The correct answer is (B) Income Summary
Explanation:
The income summary is a procedure that allows us to glimpse, globally, all the entries that existed in a period. It provides very valuable generalized information, which lets you know how business, work or some investment is going.
To ensure that our results are accurate, we must close all income and expense accounts, and take stock to obtain our conclusions. If the results have not been favorable, we must make the necessary adjustments so that in the next income summary we can obtain better results.
