<em>Answer:</em>
hi! I believe your answer would be <em>Austria</em>. :]
In a business, the useful life of a machinery depends on its usage.
Let us assume that the useful life of the machine is 5 years.
cost of 500,000 ; useful life - 5 years ; further assume that there is no salvage value and no section 179 election and no out of bonus depreciation.
We will use the straight line method of depreciation. It is dividing the cost by its useful life.
500,000 / 5 years = 100,000 depreciation expense per year.
Since he only bought it on July 1, it can only be depreciated for 6 months.
100,000 * 6/12 = 50,000 depreciation expense for year 2015.
Gross income is the income before taxes and deductions
Net income on the other hand is the income after taxes and deductions and credits are factored into gross income. This is the reason why net income is lower than gross income. Gross income = net income + taxes
Answer:
The number of days, on average, takes the firm to sell its inventory: c. 121.07 days
Explanation:
The number of days takes the firm to sell its inventory indicates how many days on average a company turns its inventory into sales, is calculated by following formula:
Days' sales in inventory = (Inventory/Costs of goods sold) x 365
Al's Sport Store has costs of goods sold of $628,300, inventory of $208,400
Days' sales in inventory = ($208,400/$628,300) x 365 = 121.07 days
The higher the supply the lower the price will be and the higher the demand the higher the price will be. This means that they have an inverse relationship. In short, the more you need something the more you're willing to pay for it, and the less you need it the less you want to pay, and this is basically how the economy works when producing and selling.