<u>Answer:</u>
<u>Closing entries
</u>
Date account and explanation Debit Credit
Dec 31 Service revenue 108000
Income summary 1080000
(To close revenue)
Dec 31 Income summary 72000
Supplies expense 6000
Salaries and wages expense 40000
Utilities expense 8000
rent expense 18000
(To close expense)
Dec 31 Income summary 36000
Owner's capital 36000
(To close income summary)
Dec 31 Owner's capital 22000
Owner's Drawing 22000
(To close withdrawal)
Total Revenues
The price at which a firm sells one unit of its product is known as Selling Price.
A firm will sell a certain number of units during a given period – day, week, month, year etc.
When we multiply the Selling price and the quantity sold by a firm we get total revenues of a frim for a given period.
Answer:
The company's current stock price is $ 18.62.
Explanation:
To calculate the company's current stock price we have to use first the following formula to calculate the: Expected Return of stock
Expected Return of stock = Risk Free Rate+ Beta * Market Risk Premium
Expected Return of stock= 4+1.15*5
=4+5.75
Expected Return = 9.75%
Then, we can calculate the stock price with the following formula:
Price = Dividendat year 1/ Return- Growth
D1 =0.75*105.5%
=0.79125
Price =0.79/( 0.0975-0.055)
=18.62
The price is $ 18.62
Answer:
Option A is correct.
will earn a higher profit than Bright Nails
Explanation:
If sales of both saloons increases by an equal amount then Hard Nails<u> will earn a higher profit than Bright Nails.
</u>
- The strategy of Hard Nails is that it is paying it's manicurists on a salary basis i.e it is a fixed cost. If sales increases Hard Nails will not give any extra amount to it's manicurists.
- On the other hand the strategy of Bright Nails is that it is paying it's manicurists on the basis of no. of customers they serve. So, if sales increases then it have to pay more amount to it's manicurists.
