1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
elena55 [62]
3 years ago
6

Suppose a local hardware store has explicit costs of $2 million per year and implicit costs of $44,000 per year. If the store ea

rned an economic profit of $50,000 last year, this means that the store's accounting profit equaled:________.a. 6000b. 94000c. 2.044 milliond. 2.05 million
Business
1 answer:
xeze [42]3 years ago
5 0

<u>Answer: </u>Option B$94000

<u>Explanation:</u>

The economic profit of the company can be found from the difference of the total revenue and the total cost that includes implicit and explicit cost. To find the total revenue earned the economic profit formula can be used.

Economic profit = Total revenue - (Explicit cost+ Implicit cost)

50000=Total revenue - (2,000,000+44,000)

Total Revenue = 2,044,000+50000

=2,094,000

Accounting profit is the actual profits earned by the firm which is calculated as difference between revenue and explicit cost. Implicit cost are not paid for they are the hidden costs.

Accounting profits = Total revenue - Explicit cost

=2,094,000 - 2,000,000

=$94,000

Thus the accounting profit of the local hardware store is $94,000.

You might be interested in
Sam is comparing the costs of two loans. The principal amount of each loan is $5,000. One is due in one year and the other is du
Naya [18.7K]

Answer:

b. the princpal paid for the one-year loan will be higher than the princpal paid for the four-year loan

d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan

Explanation:

Sam is comparing the costs of two loans.

The principal amount of each loan is $5,000.

One is due in one year and the other is due in four years.

Both have the same stated rate of annual interest.

Two of the following are true:

<u>b. the principal paid for the one-year loan will be higher than the principal paid for the four-year loan.</u>

Considering the time value of money, $5000 principal repayment in one year time discounted at 5% will be 5000/1.05^1 = $4,761 but if repaid in 4 years = 5000/ 1.05^4 = $4,113.5

d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan

5% on 5,000 for 1 year = $250 but if paid for 4 years will be 250 x 4 = $1000

8 0
3 years ago
Read 2 more answers
Befriends corporation uses the trademark of community life inc., a social media site, as a meta tag without community life's per
sashaice [31]
Using the trademark of a social media site Community Life Inc. by Befriends Corporation as a meta tag without community life's permission is permissible if the use reasonably necessary or the use constitutes trademark infringement. Therefore, the answer is letter C.

 


7 0
4 years ago
Read 2 more answers
In economics there are positive statements and normative statements. The following is an example of a normative statement: "Stud
NeX [460]

Answer:

The question?

Explanation:

6 0
3 years ago
Tom's Textiles shipped the wrong material to a customer, who refused to accept the order. This is an example of a:-Sales revenue
Angelina_Jolie [31]

Answer:

Sales return

Explanation:

Sales return when a customer is not satisfied with a product, refuses to accept the order and expects to receive back the whole amount of money he paid for it.

Tom's Textiles are at wrong here as they shipped the wrong material to a customer. The customer is allowed not to accept the order and all the money he paid must be reimbursed to him. The company should apologize for the mistake in a pleasant manner, as mistakes happen everyday and can be corrected quickly and efficiently.  

3 0
3 years ago
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2010, its
REY [17]

Answer:

Dylan Delivery Company

1. 10-Column Worksheet (see attachment)

2. Closing Journal Entries at December 31, 2010:

Date  Description                        Debit         Credit  

Depreciation expense - Truck    80,000  

Salaries Expense                         111,000  

Office supplies expense             18,000  

Repairs expense- trucks             15,000

Income Summary                                          224,000

To close expenses to the Income Summary.

Date  Description                        Debit         Credit

Income Summary                      263,000

Delivery fees                                                263,000

To close revenue to the Income Summary.

Date  Description                       Debit         Credit

Net Income                                39,000

Retained Earnings                                        39,000

To close the net income to retained earnings.

2b) Capital to be reported on balance sheet as at December 31, 2010:

S. Dylan Capital                 $307,000

Retained Earnings                39,000

S. Dylan withdrawals           (34,000)

Net Capital                        $312,000

Explanation:

a) A 10-column worksheet is a tool used by accountants to close the temporary accounts, after necessary adjustments, and then extract a balance sheet.  It comprises two columns (debit and credit) for each of the following: Unadjusted Trial Balance, Adjusting Entries, Adjusted Trial Balance, Income Statement, and Balance Sheet.

b) A closing entry is a journal entry that is made at the end of an accounting period to transfer balances from a temporary account to a permanent account.  The four basic steps in the closing process are: Closing the revenue accounts—transferring the credit balances in the revenue accounts to a clearing account called Income Summary. Closing the expense accounts—transferring the debit balances in the expense accounts to a clearing account called Income Summary.  Extracting a balance between the revenue accounts and the expense accounts, called the net income or loss.  Closing the net income or loss to the Retained Earnings.

Download xlsx
5 0
3 years ago
Other questions:
  • Goode Inc.'s stock has a required rate of return of 13.50%, and it sells for $15.00 per share. Goode's dividend is expected to g
    13·1 answer
  • Who collects Federal Taxes? a. IRS b. INS c. Treasury d. Federal Reserve
    14·1 answer
  • _____ is the risk of expropriation (seizure) of a foreign subsidiary's assets by the host country.​
    8·1 answer
  • Suppose a perfectly competitive​ firm's total cost of production​ (TC) is:
    8·2 answers
  • Cherries on Top, a national ice cream shop, is struggling financially to keep up with the bigger chains. The top executives have
    5·1 answer
  • Bon Nebo Co. sold 25,000 annual subscriptions of Magazine 2018 for $85 during December 2018. These new subscribers will receive
    5·1 answer
  • Callaway Golf Company conducted a one-time survey of golfers and asked them about their attitudes, preferences, and intentions r
    13·1 answer
  • How do financial intermediaries impact the market efficiency?​
    12·2 answers
  • What is the term for the idea that some goods will be overused and depleted if not regulated?
    13·1 answer
  • Which are types of income tax that people pay? Check all that apply.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!