Answer:
c. $504,000
Explanation:
Total cost of new equipment = Price of equipment + Shipping & Installation costs = $3,200,000 + $160,000 = $3,360,000
Increase in working capital = Increase in inventories & account receivables - Increase in accounts payable = $640,000 - $256,000 = $384,000
Total Initial net investment outlay = $3,744,000 ($3,360,000+$384,000)
Project terminal cash-flow = Sale value of equipment (after tax) + Recovery of working capital = $200,000*(1-0.40) + $384,000 = $120,000 + $384,000 = $504,000
Answer:
d. Harmon only needs to show the bank his record of income from
his old job, not his new business.
Answer: E. The firm's ability to differentiate its product
Explanation:
The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.
Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.
This is known as the coattail effect. It is when the actions or activities of the main branch of a business or the franchise branches would impact the whole business. This is one weakness of a franchise business. since one wrong move from just one small branch would might have a larger impact on the whole name of business.<span />
Based on the transaction that Sally engaged in, recording it will involve:
- Debiting cash for $10,000.
- Crediting equity for $10,000.
<h3>Recording Sally's transaction. </h3>
- The cash transaction is an investment which will be recorded in the Shareholder's Equity account.
- The investment came in cash so will go to the cash account.
When cash is increased as was the case here, it should be debited. When equity increases as was the case here once more, it is to be credited.
Find out more on shareholder's equity at brainly.com/question/26384373.
