Answer:
The external financing requirement is $ 1.2 million.
Explanation:
The accounting equation is asset = liability +equity. In simple words any increase in one side of balance sheet (i.e asset) will result in increase in other side of balance sheet (i.e equity + liability) and vice versa.
So if assets are projected to increase by $ 2.7 million than equity and liability is also required to increase by same. As equity is increased by $ 1.5 million, the liability/external financing is calculated as follow
Asset = Liability + Equity
Liability = $ 2,700,000- $ 1,500,000
Liability = $ 1.2 million
Answer:
The right choice is "3 Correctly ignored a sunk cost"
Explanation:
As the ticket to the opera was already bought and it is nonrefundable, nonexchangeable, and nontransferable; whether Van decides to go to the opera or to go to the party with Amy; he has incurred $100 cost of ticket which can not be recovered in any manner.
The ticket cost in this question is categorized as sunk cost - cost that incurred in the past and will be remained the same regardless of any future actions. Thus, this type of cost should be ignored when making decision for the future.
So, "3 Correctly ignored a sunk cost" is the correct choice.
Answer:
D) None of the items listed would be subject to unrelated business income taxes.
Explanation:
Since Shelter the Needy is a tax exempt organization it must file Form 990 and must include the financial information of the nonprofit. Depending on the organization's total income for the year, it must file Form 990 or it can file Forms 990 EZ or 990 N, and if it is a foundation it must file Form 990 PF.
Any art work or other donations made to the nonprofit can be sold as long as the proceeds are used to keep the nonprofit operating. Nonprofits are also allowed to earn revenue from services that they provide as long as they are related to the organization's main activity and the proceeds are used for normal operations.