Answer: $153,782.70
Explanation:
The MACRS allowance percentages are as follows, commencing with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.
In 4 years, the depreciation would be:
= Cost price * (4 year deprecation)
= 525,000 * (14.29% + 24.49% + 17.49% + 12.49%)
= $360,990
Book value :
= 525,000 - 360,990
= $164,010
Gain (loss) = Sale price - Book value
= 150,000 - 164,010
= ($14,010)
Tax payable = (14,010) * 27%
= ($3,782.70)
After-tax cash flow:
= Selling price - Taxes
= 150,000 - (-3,782.70)
= $153,782.70
<em>Note: If there are options, beware of rounding errors and pick nearest option. </em>
Answer:
Accounting profit is the difference between total revenue and accounting cost in which the accounting cost is containing only the explicit cost incurred. Economic profit is the difference between total revenue and total opportunity cost, the latter containing both the explicit cost and the implicit cost incurred.
Accounting profit = revenue - explicit cost
Accounting profit = 125,000 - (10000 + 20000)
Accounting profit = 95,000
Economic profit = accounting profit - implicit cost
Economic profit = 95,000 - (75000 + 5000)
Economic profit = 15,000
This implies that while accounting profit does not undertake implicit cost of economic activity (cost for which no explicit payment is made separately), economic profit does deduct them. Now economic profit is positive, Jolene should open Little Barks.
In the balance sheet, in order to account for the money or amounts that go to an fro in the sheet, we use the equation,
NW = As - Li
where NW is the networth, As is the asset, and Li is liabilities.
From the given above, the total asset (As) is given to be $166.859M. The net worth is equal to the sum of the common stock, cash, and retained earnings.
Networth = ($5.080 M) + ($8.040 M) + ($36.411 M)
Networth = $49.531
The the equation above, we may derive the equation for liability by transposing,
Li = Asset - Networth
Li = ($166.859 M) - ($49.531 M)
Li = $117.328
Hence, the total liability is equal to $117.328.
Answer:
There are several ways in which a young entrepreneur can carry out purchasing activities responsibly, including:
1. Measured production of inventory or units of products- If an entrepreneur is producing bicycles for instance, (s)he should only spend on inventory that (s)he anticipates will be sold to customers or purchased by retailers. For example, let's assume that the entrepreneur has a purchase order from a retailer such as K-Mart for 500 bicycles. In this case the entrepreneur should only produce around 550 bicycles rather than 700 or 1000 bikes, thus, purchasing supplies and producing inventory in accordance with demand for his/ her bicycles.
2. Lowering costs of production where possible- Firstly, this can be done by purchasing supplies and materials for inventory in bulk. Secondly, the entrepreneur could outsource the manufacturing of his/her product to countries (such as China) where production costs are significantly cheaper.
