Answer:
There is loss of $900 on investment.
Explanation:
The purchase of 1 MMM July 129 call contract at premium = $21
Since it is given that it is held unit the expiration date.
The selling price of MMM stock = $141 per share.
Total number of shares = 100
Total amount paid for share (purchase price) = 129 + 21 = $150
Loss or profit = Market price on expiration date- purchase price
=141-150
= - 9
Total loss = 9 × 100
=900 loss
Answer:
Net operating income= $242,506.6
Explanation:
Giving the following information:
Earnings before interest and taxes= $237,884
Depreciation expense= $87,882.
Tax rate= 35%
<u>To calculate the net operating profit, we need to use the following structure:</u>
EBIT= 237,884
Tax= (237,884*0.35)= (83,259.4)
Depreciation= 87,882
Net operating income= 242,506.6
Answer:
Uneven distribution of natural resources often leads to countries trading with one another, explain how
In ancient times, trade by barter was first employed for trading as a result of uneven distribution of natural resources which calls for need for transacting with other countries. It has greatly benefited countries in such a way that it strengthens the tie between them and make wealth to be well distributed as the country with least natural resources still has something to sell to those with many. e.g Crude oil from Nigeria to other part of the world has made it easier for Nigeria and this still remains their major natural resources used in international trade for money and it has helped to boost their economy since oil was detected.
Explanation:
Answer:
25%
Explanation:
the margin of safety is the percent of sales which the company is above the break even point.
We solve for the break even point:
BEP = 150,000
We solve for the margin of safety:
$ 200,000 - $ 150,000 = $ 50,000
Now we compare against our sales:
$ 50,000 / $ 200,000 = 0.25
Answer:
Explanation:
The journal entry is shown below:
Factory Overhead A/c Dr $25,000
To Wages Payable A/c $25,000
(Being actual overhead cost is recorded)
For recording this transaction, we debited the factory overhead account and credited the wages payable account so that the correct posting can be done.
All other information which is given is not relevant. Hence, ignored it
