The answer is D. Total assets decreasing since they're depreciated. But total expenses will increase for sure in order to replace the depreciated equipment.
Answer:
The correct answer is: $60.
Explanation:
Opportunity Cost is what a person sacrifices when they choose one option over another. It is also defined as the revenue of the chosen option over the revenue of the option that was forgone. It represents what was left on the table for deciding taking one option over another.
In Ben's case, the opportunity cost of going to the event represents what he could have earned working for three hours (<em>$10 x 3 = $30</em>). However, as he will have to pay for the event, he will lose $30 for the event ticket. Then, the total opportunity cost of going to the event is:
$30 + $30 = $60
Answer:
Capital gain tax = $1,540.
Explanation:
As per the data given in the question,
For stocks of A
Profit = (selling price - purchasing price) × units
= ($19 - $23) × 200
= -$800
For stocks of B
Profit = ($57-$41) × 600
= $9,600
Total profit = profit for stock A + profit for stock B
= -$800 + $9,600
= $8,800
Therefore, capital gain for both year = $8,800
Tax rate = 35%
Capital gain tax = Capital gain × Tax rate
= $8,800 × 35%
=$3,080
As share holds for more than a year,
So, Capital gain tax = $3,080 ÷ 2 = $1,540.
Answer:
Partners Dennis and Lilly have decided to liquidate their business. The following information is available:
Cash $100,000 Accounts Payable $100,000
Inventory $200,000 Dennis, Capital $120,000
Lilly, Capital $80,000
$300,000 $300,000
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts payable is paid. During the second month, the rest of the inventory is sold for $45,000, and the remaining accounts payable are paid. Cash is distributed at the end of each month, and the liquidation is completed at the end of the second month.
1. Using a safe payments schedule, how much cash will be distributed to Dennis at the end of the first month?
a. $36,000
b. $64,000
c. $60,000
d. $24,000
2. Using a safe payments schedule, how much cash will be distributed to Lilly at the end of the first month?
a. $40,000
b. $24,000
c. $64,000
d. $16,000
Answer:
Profit margin = net profit / total sales = $78 / $5,200 = 1.5%
Asset turnover = total sales / average total assets = $5,200 / ($2,990 + $3,510) = 1.6
Return on assets = net income / average total assets = $78 / $3,250 = 2.4%
Return on common stockholders’ equity = net income / average stockholders' equity = $78 / ($992 + $1,031) = 7.71%
Gross profit rate = gross profit / total sales = $1,716 / $5,200 = 33%
