Answer:
a. $33,000
b. $36,000
Explanation:
The computation is shown below:
a. Cash basis net income
= Collection from customers - expenses paid
= $105,000 - $72,000
= $33,000
b. Accrual basis net income
= Service performed - expenses incurred
where,
Service performed is
= $105,000 - $25,000 + $40,000
= $120,000
And, the expenses incurred is
= $72,000 - $30,000 + $42,000
= $84,000
So, the net income under accrual basis is
= $120,000 - $84,000
= $36,000
Answer:
The answer is a. equilibrium price to increase and equilibrium quantity to decrease.
Explanation:
The exit of firms from the market will cause supply curve to shift to the left. This will cause the equilibrium quantity to decrease and the equilibrium price to increase.
Answer:
42.5
Explanation:
The computation of the expected value is shown below:
= Low price range × chance percentage + high price range × chance percentage + most likely price range × chance percentage
= $5 billion × 20% + $100 billion × 10% + $45 billion × 70%
= $1 + $10 + $31.5
= 42.5
Basically we multiplied each one with its chance percentage