Answer:
Explanation:
M2-28. Computing and Comparing Income and Cash Flow MeasuresPenno Corporation recorded service revenues of $200,000 in 2020, of which $170,000 were on credit and $30,000 were for cash. Moreover, of the $170,000 credit sales for 2020, Penno collected $20,000 cash on those receivables before year‑end 2020. The company also paid $25,000 cash for 2020 wages. Its employees also earned another $15,000 in wages for 2020, which were not yet paid at year‑end 2020. (a) Compute the company’s net income for 2020; and (b) how much net cash inflow or outflow did the company generate in 2020? Explain why Penno’s net income and net cash flow differ.
<span>A monopoly would have to make it so the marginal revenue is less than the marginal cost, and in return, the monopoly would end up losing money instead of gaining money. This means that they are spending more money than they are making.</span>
Answer:
Life insurance.
Explanation:
Life insurance is defined as a contract that is raised between an individual and an insurance company that guarantees the payment of a particular amount tonthe individual's beneficiary in the case of death. The insurance policy requires premium to be paid on agreed intervals.
Stan and Heidi are both having caterers in business, and death of one of them will lead to decreased income.
To guard against this the couple can purchase a life insurance that will pay beneficiary a guaranteed sum in case of death of one of the partners.
This will ensure there is no sudden drop in their income.
Answer:
$305,000
Explanation:
Net income is the amount of money available to a company after the deduction of expenses from revenue. It is calculated as;
Net income = Revenues - Expenses
Given that;
Revenues = $630,000
Expenses = $325,000
Net income = $630,000 - $325,000
Net income = $305,000
Therefore the net income reported by Blue Spruce Corp. For the year is $305,000
