Answer: $11,200
Explanation:
Using the accounting equation:
(Total Assets) = (Total Liabilities) + (Total Capital)
So,
(Total Liabilities) = (Total Assets) - (Total Capital) (1)
Based on equation (1), in order to compute for the total liability, we need to compute the total assets and total capital.
At the end of the first year, the following are the assets Shapiro's consulting services (together with the amount):
Cash: $16,000
Office Supplies: $3,200
Equipment: $24,000
Accounts Receivable: $8,000
TOTAL ASSETS $51,200
Note that the total assets is obtained by adding the amount (or value) of the all the assets listed above.
Since the net income is an increase (or decrease if it's a net loss) of capital, we classify net income as capital. In particular, the net income of Shairo's at the end of first year adds to the capital at the start of first year.
Moreover, the withdrawal of money by the owner also decreases the capital.
Thus, the total capital at the end of first year is calculated as follows:
Capital (start of the year): $15,000
Net Income (end of year): $27,000
Withdrawal Amount: ($2,000)
TOTAL CAPITAL: $40,000
Note: ($2,000) means -$2,000. This notation is used in accounting.
Hence using equation (1), the total liabilities at the end of first year is given by
(Total Liabilities) = (Total Assets) - (Total Capital)
= $51,200 - $40,000
Total Liabilities = $11,200
Contribution=Selling Price*Contribution Ratio
=25*.06
=$15
Variable Expense=Sales-Contribution
=25-15
$10
When Selling price=$28
Contribution=$28*.06
=$16.8
Variable Expense=28-16.8
=$11.2
Increase in variable=11.2-10
=$1.2
Answer:
present value of annuity is $61445.66
Explanation:
given data
annuity P = $1,000 per year
time t = 10 year
rate r = 10% = 0.01
to find out
present value of annuity
solution
we will apply here present value formula that is
present value = P ( 1 - ( 1 + r )^-t ) / r ..........................1
put here all value for r, t and P in equation 1
present value = P ( 1 - ( 1 + r )^-t ) / r
present value = 1000 ( 1 - ( 1 + 0.1 )^-10 ) / 0.01
present value = 61445.66
so present value of annuity is $61445.66
Answer: For her to sell the stock short immediately
Explanation:
Aria would have to employ selling the stock short immediately for her to gain profit, As people would want to buy much when she does so.
