Answer:
Sustainability.
Explanation:
Sustainability intends on addressing current requirements, without undermining future generations to fulfill their needs. The notion of sustainable development consists of three key elements including economic, social, and environmental which correspond to three P's that are Profit, people, and planet respectively. It is a complex process that expands the objectives of businesses from immediate profit to future-oriented goals like energy conservation, work, and safety measures in an organization, etc.
Answer:
Initial outlay = $60,000
Annual net income before tax = $7,200 per annum
Depreciation = <u>Cost - Residual value</u>
Estimated useful life
= <u>$60,000 - 0</u>
12 years
= $5,000 per annum
Annual net cashflow before tax
= Annual net income before tax + Depreciation
= $7,200 + $5,000
= $12,200
Explanation:
In this case, the annual net income before tax has been given. The annual net income before tax has excluded depreciation, which does not involve movement of cash. Therefore, we need to add back depreciation in order to obtain the expected before tax cashflow.
Economic profit is calculated as:
Economic profit = Total Revenues – Total Cost
Total cost both includes explicit and implicit cost. In
this case, the explicit cost is $8,000 while the implicit cost is $64,000.
Explicit cost is a direct payment made to run the business while implicit cost
is the opportunity as accountant that is lost. Therefore,
Economic profit = $150,000 – ($8,000 + $64,000)
<span>Economic profit = $78,000</span>
Answer:
10% is a high-profit margin
Explanation:
Since Justine is just starting her new business this might actually be a bad idea because 10% is a high-profit margin. In new business, you need to start off with very small profit margins in order to attract customers with low prices and grow a loyal customer base. Once the business begins to grow and sales start kicking up then you may begin increasing your profit margins.
Answer:
Inventory TO 5.5
This means Ortiz sales his inventory 5.5 times per year.
Explanation:
Inventory turnover for Ortiz
where:
COGS: 66,000
In this case the average inventory is provided already: 12,000
Inventory TO 5.5
This means Ortiz sales his inventory 5.5 times per year.
