The Card Shoppe needs to maintain 18 percent of its sales in net working capital. Currently, the store is considering a four-yea
r project that will increase sales from its current level of $279,000 to $308,000 the first year and to $314,000 a year for the following three years of the project. What amount should be included in the project analysis for net working capital in Year 4 of the project?
As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project
Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.
While different state has different requirements and rates for reporting sales tax. Sales tax items are simply used to know specific rates charged to your customers and the tax authority vendor to which you remit the sales tax.
Hence the information that is needed to set up sales tax in QuickBooks Online for a client who only does business in their home state includes the following: information that is needed to set up sales tax in QuickBooks Online for a client who only does business in their home state includes the following:
1. The company's address
2. Start date of the current tax period.
3. Estimated periodic time to file a tax return
4. Start date of collecting sales tax for the agency
b. Buy new car because EUAC of challenger is $4,904 and EUAC defender is $5,111.
If the used car is kept its current worth is $7,500. The maintenance for next two years will be $1,800 and $2,000. The total maintenance expense for next two years will be 3,800. The net book value for car after two years will be $7,500 - 3,800 = 3,700.
The car can then be sold for $3,000. There will be net loss of $700 value of the car. The new car cost $22,000 but all maintenance cost is saved. The best option then is to buy new car.
d. The restaurant industry, which is characterized by many firms producing differentiated products in an industry with free entry and exit.
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services. there are little to no barriers to entry or exit of firms into the industry
examples of monopolistic competition are restaurants.
a. The market for Grade A sorghum (milo), which is characterized by many firms producing a homogeneous product. this is an example of a pure competition
b. The market for jumbo aircraft, where one major domestic firm competes with one major foreign firm. This is an example of a duopoly
e. The tobacco market which is characterized by a few firms producing a differentiated product with difficult entry. this is an example of an oligopoly