Answer:
-$20,000
Explanation:
Economic profit takes into account opportunity cost of an activity.
Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives. Opportunity cost is also known as implicit cost.
Because Bobby chose to work at the seafood resutrant, he forgoed the opportunity of working at the county. Thus, his opportunity cost is $30,000.
Also, if he wasn't making use of the restaurant, he could have rented it out. Thus, his opportunity cost of making use of the restaurant is $20,000.
Economic profit = Revenue - (Implicit cost + Explicit cost)
$50,000 - ($20,000 + $30,000 + $20,000) = -$20,000
I hope my answer helps you
3.Doing everything on your own.
Answer:
B. Compounding
Explanation:
In compound interest, the interest earned in a period becomes part of the principal amount for the next period. The principal amount will, therefore, be increasing every year. As the principal amount increases, the interest earned rises.
Because the interest earned becomes part of the principal amount, it means that interest earned also earns interest. Unlike the simple interest which earns constant interest throughout, compound interest increases with time.
Answer:
Revenue , Liability
Explanation:
Cash received from Customer for Unearned Subscription revenue is : 'Advance Income' i.e received before being earned / being due. So , it is recorded as Advance (Unearned) Income (Revenue).
It is a Liability for the firm as cash has been received but the goods & services are yet to be delivered or rendered.
Net Income will remain identical after adjustment entry. Entry : Cash dr to Advance Income cr - at time of cash receipt , Advance Income dr to Income cr - at time of accrual due time settlement. Income net amount will remain same as Cash dr to Income in usual case
Answer:
Total sum due after 5 years = $2,626.9
Explanation:
The sum of 100 that is invested per period(quarterly)for certain number of period is referred is referred to as an annuity. The total sum that the investment would worth after if interest rate is compounded quarterly for the investment period is referred to as the future value of annuity.
The total sum due can be computed in two stages. The first is to determined how much the annuity investment would worth after 5 years. And the second is to determine how much the single sum of $100 would worth after 5 years.
This done as follows:
The future Value of annuity is computed using the formula below:
FV = A×( (1+r)^n - 1)/r)× (1+r)
A- periodic cash flow invested
r- interest rate per period
n- number of period
FV = future value
r= 8/4= 2%
n= 5×4= 20
FV= 100×(1.02^20 -1)/0.02)×(1.02)= 2478.3
Step 2 : The future value of the value of the Initial lump sum of $100 already existing
FV= A× (1+r)∧n
= 100×(1.02)^20 =148.59
The sum due after the end of the investment period =
2478.3 + 148.59=$2,626.9
Total sum due after 5 years = $2,626.9
