Answer:
b. 9.0%.
Explanation:
The computation of the return on the investment is shown below:
Net earning is
= Earning per share × number of shares - interest paid
= (1.50 × 2) - ($20 × 6%)
= $1.80
Now the return on the investment is
= Net earning ÷ own investment
= $1.80 ÷ $20 × 100
= 9%
Hence, the return on the investment is 9%
Answer:
According to a physical count, 600 units were on hand at the end of March. The cost of goods sold for March applying the FIFO method is:
$1081600
Explanation:
MARCH 1 800 20
MARCH 8 8600 22
MARCH 8 15400 22
MARCH 8 22400 24
MARCH 8 27400 24
Final Inv. 600
Sell units 74000
FIFO Purch. Unit cost Sell Un. Cost
MARCH 1 800 20 800 16000
MARCH 8 8600 22 8600 189200
MARCH 8 15400 22 15400 338800
MARCH 8 22400 24 22400 537600
MARCH 8 27400 24 26800 643200
74000 1081600
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
The workings are made below;
Explanation:
Depreciation Expense for 2022 =($90,880-$,8,640)/8=$10,280*3/12=$2,570
Depreciation Expense for 2023=$10,280 ($90,880-$8,640)/8
The depreciation for 2022 is calculated on pro rata basis from the date of purchase till December 31,2022.
Where as depreciation for 2023 is charged on full year basis as the asset was used for the whole year.
Answer:
Attached below are the graphs
Explanation:
i) The Equilibrium wage rate in the market is determined by the Intersection of the labor demand and supply curve as seen in the graph attached
ii) The Labor supply curve the firm faces is perfectly elastic in a perfectly competitive resource market
iii) The demand curve of the firm is perfectly elastic because in competitive market a slight change in price will cause a massive change in demand
iv) The firm will continue hiring as long as MRP ≥ MFC
( MRP = marginal revenue product , MFC = marginal factor cost )
