Based on the given scenario above, since Susan had no previous balance on her credit card and that she was able to pay off the balance within 1 month, she will not be paying any interest. The interest in the credit card only applies to the amount that has been pass the due date or are not paid in full. Hope this answer helps.
Answer:
cash flow on total assets ratio = 4.8 %
so correct option is a) 4.8%
Explanation:
given data
net cash flows = $120,000
total cash flows = $500,000
average total assets = $2,500,000
to find out
cash flow on total assets ratio
solution
we get here cash flow on total assets ratio that is equal to
cash flow on total assets ratio = Operating cash flow ÷ Average total assets ..................1
put here value we get
cash flow on total assets ratio =
cash flow on total assets ratio = 4.8 %
so correct option is a) 4.8%
Answer:
Mercer Asbestos should define the Cost Drivers first before introducing the Activity Based Costing System, cost drivers actually help the compnay to measure the cost per unit based on the contribution / impact of eac activity that had direct relation with the cost.
Explanation:
Estimator should define the cost drivers such as labor, factory overhead indicators and which has impact on the performance activity of both routine and non routine works.
Possible cost drivers for the below activities can be;
- Removal of asbestos insulation around heating pipes in older homes. Likely cost drivers can be ( Direct Labor Hours Involved in the activity, Other indirect manpower hours dedicated for the activity)
- Removal of asbestos-contaminated ceiling plaster in industrial buildings. Likely cost drivers can be ( Total covered area where contaminated ceiling plaster is present, Supervisors and other manpower involved in the activity).
Once the drivers have been defined cost/unit based on ABC system will help the decision makers such as Cost Planners to quote the accurate selling price to cover the profit margin.
Answer:
$51,020.41
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
PV = FV × (1 + r) ^ (-n)
PV = 25,000 (1 + 5%) ^ (-1) + 30000 (1 + 5%) ^ (-2)
= 51020.41
Where PV = present value
FV = Future value = 25,000 In year 1 and 30,000 In year 2
I = interest rate = 5%
N = time = 1 ,2
I hope my answer helps you