Answer:
The answer is: A) The new machinery can be depreciated using the same method or different method than the previously purchased machinery
Explanation:
Their is no rule that requires a business to always use the same depreciation method for the assets they purchase.
The most common depreciation methods include:
- Straight-line.
- Double declining balance.
- Units of production.
- Sum of years digits.
Depending on the asset a business may consider one depreciation method that better suits it, and another depreciation method for their other assets.
Answer:
A) price will increase and quantity increase.
Explanation:
An increase in demand means more customers are willing and can afford to buy a product. Holding the other factors constant, an increase in demand results in many potential buyers chasing very few goods. The competition for the few goods leads to an increase in their prices. The equilibrium point moves up the graph to a new higher position as a result of an increase in demand.
As per the law of supply, quantity supplied increases as prices rise. Profit motives drive all business establishments. As prices increase due to increased demand, suppliers will be motivated to supply more to take advantage of high prices.
Answer:
A) The account receivables turnover is 15, and B) the number of days sales in receivables is 24.3 days.
Explanation:
A) FORMULA FOR ACCOUNT RECEIVABLES TURNOVER =
NET SALES / AVERAGE ACCOUNT RECEIVABLES
Given information -
Net sales = $1500,000
Average account receivables = $100,000
Putting the values in formula -
= $1500,000 / $100,000
= 15
B) FORMULA FOR NUMBER OF DAYS SALES IN RECEIVABLES =
365 / ACCOUNT RECEIVABLES TURNOVER
= 365 / 15
= 24.3 DAYS
Answer:
Kathy should seek quotes from various rental space providers.
Explanation:
Kathy should make a decision to rent of renovate the building based on cost. The major criteria for decision making is based on the monetary factors. Rent for the new space will be compared with the renovation cost in order to reach to a final decision.
Answer:
C
Explanation:
Producer's surplus is the gain a producer gain by selling at market price instead of selling at the smallest price the producer was willing to sell.
Miranda was willing to tutor at $ 20 but the market price of tutoring was $ 30 therefore her producer surplus = 30 - 20 = $ 10 while for Jason the price he was willing to tutor was more than the market price and therefore he therefore has $ 0 producer surplus.
