Answer:
the order will likely be rejected.
Explanation:
The case new order to be accepted then more space to be rented / built. New machines to be purchased. More utilities expenses to be incurred and more workers are needed. Then both fixed and variable costs will be affected. Knowing that the selling price would be less than the usual then profit from the offer would be less than it should be.
Answer:
Net Present value of Project is $9,890
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Net Present Value of Property is $9,890
Workings are made in an MS Excel file, which is attached with this answer. please find it.
Answer:
The answer is A. $ 8000 would appear on the income statement as rent revenue
Explanation:
We're dealing with financial statement, therefore we need to apply accounting principles. This income relates to the December month. The fact that only $ 5000 has been received does not reduce the income allocated to this month. This means that actual income in accounting terms is still $ 8000. The $ 5000 received will go to bank. This is not prepaid rent as the rent is due and not paid in advance. If it was paid in prior months for a later month it would be considered prepaid rent. Nor will $ 8000 appear on the statement of cashflows as only $ 5000 was received. The revenue is earned in this period, whether it is paid is not relevant to the revenue being recorded for this month.
Therefore the only logical answer is A. $8000 will appear on the income statement as rent revenue earned
Cost of good sold; average inventory
Answer:
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