Answer: $1000
Explanation:
First, we calculate the amount if bad debt expense which will be:
= 3% × $50000
= $1500
Therefore, the balance of accounts receivable at the end of the first year will be:
= Amount of bad debts expense - Account written off
= $1500 - $500
= $1000
Answer:
false
Explanation:
The given statement depicts opportunity cost and not sunk cost. A gain, income, or interest of something which has to be given up in order to obtain or accomplish anything else. Because each resource can be put to different uses, each action, option, or decision has an added cost of opportunity.
On the other hand, Sunk cost refers to the cost already accumulated and also not recoverable. Sunk costs is often compared with potential costs, which could be reduced in the future if measures are taken.
Answer:
The cost of capital is 10.974%
Explanation:
The capital of a firm is made up of debt and equity component. The weighted average cost of capital or WACC of a firm is the cost of all the firm's capital components combined and can be referred to as simply the cost of capital.
The cost of capital or WACC for Bioplex Corporation is,
WACC = 0.1 * (1-0.21) * 0.06 + 0.3 * 0.09 + 0.6 * 0.13
WACC = 0.10974 or 10.974%
Answer:
Explanation:
Where Price equals marginal cost ( MC ) , supply will be made .
A ) Supply curve for rainfed area almond growers
P = .02 Q
Q = 50 P
Supply curve for drier area growers
P = .04 Q
Q = 25 P
B ) No of growers of rainfed area = 500
no of growers of dry area = 300
Total supply = Qs = 50 P x 500 + 25 P x 300
= 25000 P + 7500 P = 32500 P
C )
Market demand Qa = 105000 - 2500 P
For equilibrium Qa = Qs
32500 P = 105000 - 2500 P
35000 P = 105000
P = 3
D ) Qs = 32500 x 3 = 97500 .
E ) amount by rainfed growers
= 500 x 50 x 3 = 75000
amount by dry area growers = 300 x 25 x 3 = 22500
