I'm unaware of such a confounded question...one minute extracting an answer.
Answer:
If the interest rate is 12% and the cash flow in year 1 is 500 and 800 in year 3 we will discount these 2 payments buy 12% and if the present value of these 2 payments is more than 900 than the investment is worthy
500/1.12=446.42+
800/1.12^3= 569.42
==1015.85
The present values of the cash flow (1015.85) are more than the initial investment (900) therefore the publisher should invest.
If the interest rate is 25% and the cash flows are 500 in year 1 and 800 in year 2 we need to discount these by 25% and see if the present value of the cash flows are more or less than 900 which is the initial investment.
500/1.25=400+
800/1.25^=512
=912
912 is the present value of cash flows which is more than the initial investment of 900 therefore the investment would have taken place.
Explanation:
Answer:
b. Production exceeds sales for that period.
Explanation:
This is said to be calculated or gotten from Earnings Before Interest And Taxes(EBIT). This is generally referred to as EBIT. They are returns from investments made in real estate or other forms of investments in a company that is gathered after all taxes and also other interests.
In arithmetic calculations it is done by calculating gross revenue from sales and services and also labour that was been involved. Remove the cost of goods sold, then add expenses from utilities, rent etc.
Answer:
The correct option will be option B.
Dr Accounts Receivable $100
Cr Service Revenue $100
Explanation:
The reason is that the service was delivered and the money was received at just after the service delivered (the same day). So there is no need to pass the entry which includes cash received against receivables because here the cash received is because we have delivered services no because of any amount receivable.
So the entry that must be passed:
Dr Cash $100
Cr Service Revenue $100
And what we have done is:
Dr Cash $100
Cr Accounts Receivables $100
The correct entry would be removal of the effect of decrease in receivable which must be increased and increase in revenue which has not been recognized.
So the entry is that will correct the books of accounts will be:
Dr Accounts Receivables $100
Cr Service Revenue $100
Answer:
$2,400
Explanation:
The computation of the depreciation expense under the activity-based depreciation method is shown below:
= (Original cost - residual value) ÷ (estimated production units)
= ($12,000 - $4,000) ÷ (20,000 units)
= ($8,000) ÷ (20,000 units)
= $0.4 per unit
Now for the first year, it would be
= Production units in first year × depreciation per unit
= 6,000 units × $0.4
= $2,400
