Answer: we will first add the options.
A. Maximize the market value of the equity.
B. Maximize net income given the current resources of the firm.
C. Minimize the tax impact on the proprietor.
D. Decrease long-term debt to reduce the risk to the owner.
E. Minimize the reliance on fixed costs.
The correct option is A. Maximize the market value of the equity.
Explanation: A sole proprietorship is generally owned by an individual. Therefore there is a usually a limitation to how much funds that can be invested in the business.
What this means is that this form of business is very simple and restrictive with regards to equity financing. In other words, equity financing is usually limited to the amount of funds that the sole proprietor is willing to invest in the business.
This is where good financial management comes in, this is to ensure that the invested equity bears fruit, and achieves high market value in order to yield revenue.
Lack of proper management and the invested equity will be squandered.
Answer:
$4,908,000
Explanation:
The computation of accumulated depreciation expense for this purchase is shown below:-
Depreciation expense = ((Cost of machine - Salvage) ÷ Estimated useful life of machine)
= (($40,900,000 - $4,090,000) ÷ 15) × 2
= $36,810,000 ÷ 15 × 2
= $4,908,000
Therefore for computing the depreciation expense we simply applied the above formula.
Answer:
c. 48,000
Explanation:
The amount charges is based off of the total sales figure and the current year sales percentage.
We can calculate the current year's charge as follows,
Charge = (120,000 / 800,000) * 320,000
= $48,000
Whwre, 800,000 is the total sales figure (120,000 + 680,000).
Hopw that helps.
Answer: The correct answer is "efficient".
Explanation: Economists would characterize this situation as: efficient.
There are situations in which the possibilities of utility improvement are exhausted, reaching an exact point where it is not possible to improve without losing an opportunity. Basically that is the condition posed by the existence of efficient allocation.
Answer:
$5.55
Explanation:
Calculation to determine what the basic earnings per share was
Using this formula
EPS=Net income-(Value cumulative preferred stock percentage*Net income)/Shares of common stock
Let plug in the formula
EPS=$670,000-(3%*$670,000)/117,000
EPS=$670,000-$20,100/117,000
EPS=$649,900/117,000
EPS=$5.55
Therefore For 2021, basic earnings per share was: $5.55