Answer:
$213,210
Explanation:
The computation of the amount needed to pay back is shown below:
= Note payable + interest expense for 2 months + interest expense for 4 months
where,
Note payable is $207,000
Interest expense for 2 months is
= $207,000 × 6% × 2 months ÷ 12 months
= $2,070
The 2 months is calculated from Nov to Dec 31
And, the interest expense for 4 months is
= $207,000 × 6% × 4 months ÷ 12 months
= $4,140
The 4 months is calculated from Dec 31 to May 1
So, the total amount needed is
= $207,000 + $2,070 + $4,140
= $213,210
Answer:
Sales revenue $ 710,000
Cost of goods sold $ 385,000
Gross Profit $ 325,000
Selling expense 71,000
Administrative expense 91,000
Operating Income 163,000
Non-Operating Income
Interest revenue 44,000
Gain on sale of investments 91,000
Interest expense (28,000)
Restructuring costs (67,000)
Income before taxes 203,000
Income tax expense (50,750)
Net Income 152,250
Shares outstanding 100,000
Earnings per share $1.52
Explanation:
We need to determinate gross profit.
then, the operating income therefore the interest and restructuring cost are not considered. Same goes for the gain on investment as aren't part of the business normal activities.
Capital budgeting is a step by step process that businesses use to determine the merits of an investment project. The decision of whether to accept or deny an investment project as a part of a company´s growth initiatives, involves determining the investment rate of return that such a project will generate.
Answer:
The answer is: b
Explanation:
In long-run equilibrium, the long run aggregate demand curve and aggregate supply curve intersect where the marginal revenue (revenue derived from selling an additional unit) and marginal cost (cost incurred from producing) an additional unit) are equal. In the long-run equilibrium, this intersection occurs at the lowest point of the long-run average total cost curve (curve depicting the average cost per unit of production).
Holding all else constant, short run changes in the economy would not change the potential output levels. The long-run aggregate supply curve would remain fixed at the potential level of output. However, these changes: international tensions, corporate scandals and loss of confidence in policymakers would cause shifts in the aggregate demand curve since demand would be adversely affected.
Consumer confidence is the perspective or outlook that consumers have on the state of the economy. The destabilising factors given in this scenario would raise the levels of uncertainty and perceived risk, reducing the confidence levels of consumers and ultimately resulting in reduced demand. In long-run equilibrium, when demand is reduced, it is indicated by a leftward shift in the aggregate demand curve.
Answer:
The correct answer is C)
Explanation:
Given that the price for bananas is cheaper in Guatemala, suppliers will be driven to make a quick profit just by buying from the Guatemalan market to sell in the Honduras economy.
This, however, will cause the prices of bananas to rise in Guatemala. Because, according to the basic principles of economics, the higher the demand the higher the price.
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