Answer:
A) A river from which a company draws water is called land.
Explanation:
There are mainly<u> 4 Factors of Production</u> and these are:
<em>1. Labor </em>
<em>2. Land </em>
<em>3. Capital</em>
<em>4. Entrepreneurship</em>
- <u>Labor doesn't refer to the owner of the company.</u> It refers to the <em>work that is being done in order to finish a particular project or work</em>. This makes choice D incorrect.
- An enterprise refers to the entire company or business. It doesn't limit itself to the supervisors involved. This makes choice C incorrect.
- <u>Capital in the form of money is not a factor of production.</u> Raising finance for a company means raising money. An example of capital as a factor of production is<em> purchasing an equipment for commercial/business purposes</em>. This makes choice B incorrect.
- When it comes to "land" as a factor of production, it refers to the natural resources, which means it includes not only the forests, mountains and the like but <em><u>also the oceans, rivers, lakes, etc. </u></em>as long as it is being used in the production process. This makes choice A correct.
Answer:
Antonio and Replacement of Golf Clubs
a. He should cash the CD and use the proceeds to finance part of the golf clubs.
b. The reason is that he would pay more in in-store financing totaling $37.06 per annum than the net interest he would generate from the CD totaling $23.18 per annum. And Antonio would incur a net loss of $13.88 if the CD was renewed unlike the $5.74 if the CD were not renewed.
Explanation:
Option 1: Renew Certificate of Deposit (CD):
Interest earned = $33.48 ($600 * 5.58%)
Taxes = 10.30 ($33.48 * 30.75%)
Net Income = $23.18
Cost of in-store financing = $37.06 ($710 * 5.22%)
Net Loss(overall) = $13.88 ($37.06 - $23.18)
Option 2:
Sale-off of CD = $600
Net financing required = $110 ($710 - $600)
Cost of financing = $5.74 ($110 * 5.22%)
Answer:
a. $1,420,000
b. $4,514,800
Explanation:
When it comes to fixed assets, all costs that directly helped make the asset available for use are to be capitalized.
Cost of Land
= Purchase Value + Cost Incurred to Tear Down 2 Buildings + Legal Fees + Title Insurance Cost + Assessment Cost - Salvage
= 1,300,000 + 110,000 + 5,000 + 3,500 + 9,500 - 8,000
= $1,420,000
Cost of Building
= Architect's Fees + Liability Insurance Cost + Excavation Cost + Contractor's Payment + Interest Cost
= 46,000 + 3,800 + 15,000 + 4,200,000 + 250,000
= $4,514,800
Answer:
The answer is: Gross profit = $2,788
Explanation:
- Feb. 1 Purchase 110 units $46 per unit
- March 14 Purchase 190 units $48 per unit
- May 1 Purchase 135 units $ 50 per unit
312 units were sold at $64 per unit, tax rate is 30%
Using FIFO, what is the company's gross profit? We first calculate COGS
Cost of goods sold - 312 units:
- 110 units at $46 per unit = $5,060
- 190 units at $48 per unit = $9,120
- 60 units at $50 per unit = $3,000
Total COGS = $17,180
<u>Income statement for Hogan Industries 2017</u>
Total revenue $19,968
<u>COGS ($17,180) </u>
Gross profit $2,788
<u>Taxes 30% ($836.40) </u>
Net profit $1,951.60
