Answer:
The answer is: A) $40,000
Explanation:
All you have to do is calculate the difference between registered equity value (Sanson had $80,000 and Jeremy had $120,000) with the current market prices.
$240,000 - ($80,000 + $120,000) = $40,000
This $40,000 difference is called market value added (MVA).
Answer:
b. $248,000
Explanation:
The computation of the cash receipts for October would be
Particulars October
Cash sales $60000
August credit Sales $22000 (10% of $220,000)
September Credit Sales $126000 (70% of $180,000)
October credit Sales $40000 (20% of $200,000)
Budgeted cash receipt $248000
Hence, the correct option is b.
Answer:
The cost price is the price you buy a product for. You need to compare the cost price to the selling price to know whether you got a profit or loss (did you make money or did you not).
If you don't know the cost price, you don't know whether you have a profit or loss. Of course everyone wants a profit (make money) so to determine a selling price the cost price is important.
