Answer:
Explanation:
1
Dr Accounts Receivable 74600
Cr Sales Revenue 74600
Dr Cost of Goods Sold 37900
Cr Inventory 37900
2
Dr Freight Out 310
Cr Cash 310
3
Dr Sales Revenue 3880
Cr Accounts Receivable 3880
Dr Inventory 1910
Cr Cost of Goods Sold 1910
4
Dr Sales Revenue 1160
Cr Accounts Receivable 1160
5
Dr Cash 53300
Cr Accounts Receivable A/c 53300
Answer:
Discounted Payback period 3 years
Modified Internal rate of return 4.833%
Explanation:
Fernando Designs has following cash flows ,
year 1 : -$900
Year 2 : $500
Year 3 : $500
Year 4 : $500
Using 10% discount factor the cashflows will be,
discounted values
Year 1 : -900
Year 2 : 454.54
Year 3 : 445.45
Year 4 : 4132231
Payback period is -900 + 454.54 +445.45 = 3 years.
Modified Internal rate of return; ![\sqrt[n]{\frac{FV of cash inflows}{PV of cash outflow} }](https://tex.z-dn.net/?f=%5Csqrt%5Bn%5D%7B%5Cfrac%7BFV%20of%20cash%20inflows%7D%7BPV%20of%20cash%20outflow%7D%20%7D)
= 4.833%
Answer: an externality, market failure
Explanation:
Externality, simply refers to the gains and the costs that a third party gets due to the productivity or consumption activities of an individual or firm. In the above question, a negative externality occurs as the production of the firm has a negative effect on wildlife and the people living in the area.
In this case, the externality results in market failure which is due to the inefficiency with regards to the distribution of the goods in the free market.
Answer:
60%
Explanation:
The computation of the utilization rate for the plant is shown below:
As we know that
Utilization rate = Actual output ÷ Design capacity
where
Actual output is 6,000 hammers per day
And, the design capacity is 10,000 hammers per day
So by considering the above information, the utilization rate is
= 6,000 hammers per day ÷ 10,000 hammers per day
= 60%
It is always expressed in a percentage form