Answer: $158,000
Explanation:
Equity = Opening equity + Net Income - Dividends
Net Income = Revenue - expenses
= 33,500 - 26,000
= $7,500
Equity = 160,000 + 7,500 - 9,500
= $158,000
Answer:
Option (D) is correct.
Explanation:
Inventory conversion period:
= (365 days × Inventory) ÷ Cost of goods sold
= (365 days × 4,500) ÷ 30,000
= 54.75
Average collection period:
= (365 days × Accounts receivable) ÷ sales
= (365 days × $1,800) ÷ 45,000
= 14.60
Payable deferral period:
= (365 days × Accounts payable) ÷ COGS
= (365 days × $2,500) ÷ 30,000
= 30.42
cash conversion cycle:
= Inventory conversion period + Average collection period - Payable deferral period
= 54.75 + 14.60 - 30.42
= 38.93 or 39 days
Answer:
The correct answer is E.
Explanation:
Giving the following information:
Yoga Center Inc. is considering a project that has the following cash flow.
Year 0= -1200
Year 1= 400
Year 2= 425
Year 3= 450
Year 4= 475
Cost of capital= 14%
To calculate the Net Present Value we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
For example:
Year 3= 450/(1.14^3)
NPV= $62.88
Answer:
-0.2; less elastic to price
Explanation:
Given that,
Percentage change in the price of gasoline = 5%
Percentage change in the quantity demanded = 1%
Therefore, the price elasticity of demand is as follows:
= Percentage change in the quantity demanded ÷ Percentage change in the price of gasoline
= (-1) ÷ 5
= -0.2
Hence, the demand for gasoline is less elastic to price because higher percentage change in prices will lead to lower percentage change in the quantity demanded.
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