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stich3 [128]
3 years ago
14

What is the opportunity cost of an investment

Business
1 answer:
Temka [501]3 years ago
7 0

<span>An opportunity cost of an investment is the difference between the return of an investment taken and the return of another investment that one had not taken. It is the forgone opportunity of an investment not taken or pursued. It is the amount of money one could have made had one chosen to pursue the other investment.  </span>

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A company using the periodic inventory system has inventory costing $210 on hand at the beginning of a period. During the period
Delvig [45]

Answer:

$685

Explanation:

Data provided in the question:

Cost of inventory at the beginning of the year = $210

Cost of merchandise purchased = $635

Inventory at the end of the year = $160

Now,

cost of goods sold for the year

= Beginning inventory + Cost of merchandise purchased - Ending inventory

or

Cost of goods sold for the year = $210 + $635 - $160

or

Cost of goods sold for the year = $685

5 0
3 years ago
Your company purchases new equipment for $80,000 and depreciates it on a straight line basis over a 5 year period resulting in a
lisov135 [29]

Answer:

$24,400

Explanation:

The computation of the after tax salvage value at the end of year 4 is shown below:

Before that following calculation need to be determined

Book value = Cost - Accumulated depreciation

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= $16,000

Now gain on sale is

= $30,000 - $16,000

 = $14,000

Now

After-tax cash flow is

= Sale proceeds - (Tax rate × Gain on sale)

= $30,000 - ($14000 × 40%)

 = $24,400

7 0
3 years ago
The distinguishing feature of economic capital (as opposed to financial capital, like money) is that it is:__________. a. expens
seraphim [82]

Answer:

C. Productive

Explanation:

3 0
3 years ago
As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The fir
I am Lyosha [343]

Answer:

1.5

Explanation:

Current ratio = current asset/current liabilities

This ratio is used to determine how quickly the current assets can be used to settle the current liabilities as they fall due.

current assets = $120,000

current liabilities = $80,000

The firm's current ratio = $120,000/$80,000

                                      = 1.5

5 0
3 years ago
Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the
expeople1 [14]

Answer:

a. 4,000

Explanation:

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= Units in beginning work in process + Units started into production - Units transferred to the next department

= 2,400 + 10,500 - 8,900

= 4,000 units

8 0
3 years ago
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