Answer: Common stock = $74810
Explanation:
The expanded Accounting Equation is an accounting equation that places more emphasise on the on the owners equity amount by showing separately how each transaction affects owners equity amount.
Assets= liabilities + Capital+ revenue - expenses - dividends
85410 = 1760 + common stock + 50265 - 24675 - 16750
Common stock = 24675 + 16750 - 50265 - 1760 + 85410
Common stock = $74810
<u>Explanation:</u>
The negative externalities such as pollution which is the most common externalities of the companies is handled by the government using the pollution taxes. By increasing the taxes for companies making pollution the product prices will increase and the demand for those products will decrease.
Landfill is also increasing over the years by manufacturing companies. Government imposes landfill taxes to these companies. So the companies try to recycle the rubbish by themselves than dumping in public property.
Plastic bag tax is another tax that is implemented on the business providing free bags for the customers. This is an additional cost to business so they use recyclable bags or paper bags.
So by imposing regulations, taxes and laws government is able to control negative externalities.
Answer:
The right project will be sorted by the use of the Profitability Index.
Explanation:
Since all three capital investment proposals have a positive Net Present Value, we have to use profitability index to ascertain which project is most profitable by following the steps below.
1. Divide the N.P.V of each project by the initial investment of the project
2. Rank the answer from the highest ratio to the least.
3. The project with the highest Profitability Index is to be selected for the investment.