Explanation:
By comparing the opportunity cost of producing wine in the two countries, you can tell that Spain has a comparative advantage in the production of wine and Denmark has a comparative advantage in the production of rye.
Spain can gain from specialization and trade as long as it receives more than 5 of rye for each bottle of wine it exports to Denmark. Similarly, Denmark can gain from trade as long as it receives more than 1/10 of wine for each bushel of rye it exports to Spain.
The terms of trade (that is, price of wine in terms of rye) would allow both Denmark and Spain to gain from trade :
9 bushels of rye per bottle of wine
8 bushels of rye per bottle of wine
Answer:
The answer is 2 the thick tree branches had shiny red apples hanging from them
Answer:
<em>1. Washburn is not required to make any accounting adjustments.</em>
Explanation:
<em>The treatment which will be appropriate for the accounting will be that the </em><em>Washburn will not require to make any accounting.</em>
Because Washburn has already spent lots of money in purchasing the new technology, and we can see that the company is using a straight-line basis. In straight-line basis, it comes from a division of the cost of asset's difference and its value that is been expected.
So if the company has used straight-line basis then the company has already calculated the amount and the company will not require to make any accounting.
Answer:
Option D. $6.25 Million
Explanation:
The Free Cash Flow can be calculated using the following formula (Ignoring investment):
Free Cash Flow = (Revenue - Operating Expenses) Minus Tax
Here
Revenue is $20 Million
Operating Expenses are $12 Million
And
Tax is not given however tax rate is given which is 35% here. For tax purposes, we will assume that the depreciation is tax allowable expense, so
Tax = (Revenue - Operating Expenses - Depreciation) * Tax rate
By putting values we have:
Tax = ($20m - $12m - $3m) = $1.75 Million
The cash impact is taken while calculating the Free cash flow. This free cash flow method is also used in IRR, NPV, discounted payback method, etc.
By putting values in the above bold equation, we have:
Free Cash Flow = ($20m - $12m) - $1.75 = $6.25 Million
