Answer:
Proposal A
3.75 years
Proposal B
3.375 years
Explanation:
<u>Proposal A</u>
Payback = 3.75 years
Year Cash Inflow Initial Investment Balance Year Count
0 0 1,050,000
1 $280,000 770,000 1
2 $280,000 490,000 2
3 $280,000 210,000 3
4 $280,000 0 *3.75
* 1050,0000 / 280,000 = 3.75 years
<u>Proposal B</u>
Payback = 3.375 years
Year Cash Inflow Initial Investment Balance Year Count
0 0 1,050,000
1 $350,000 700,000 1
2 $3150,000 385,000 2
3 $280,000 105,000 3
4 $280,000 0 *3.375
* ( 3 + ( 105,000 / 280,000 ) ) = 3.75 years
Answer:
the net cash flow from operating activities for the year 1 is $1,100
Explanation:
The computation of the net cash flow from operating activities is shown below:
= Cash collection from account receivable - cash paid for the operating expenses
= $3,500 - $2,400
= $1,100
Hence, the net cash flow from operating activities for the year 1 is $1,100
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
A. Will be the nine month period between August 15 and May 15; any time period longer than this will be long run for her.
Answer:
C. Neither Mary nor Sharon can claim breach of contract.
Explanation:
Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away.
Sharon agrees to do so, provided she has the time for it.
If Sharon fails to check the results and Mary wins the lottery, then it would be true of the contract between Mary and Sharon that Neither Mary nor Sharon can claim breach of contract.
The reason is Mary's promise is based on the condition that Sharon checks the result, Sharon's promise is based on the condition that 'if she has the time for it.'
The condition was not met by Sharon hence she cannot claim a breach of contract because she did not check the results, similarly, Mary cannot sue Sharon because sharon made it clear that she will only check If she has the time.
Answer:
If both companies have the sames sales volume, total costs and income from operations, the reason why Gouda has a lower break even point is that their variable costs are lower. We use the contribution margin per unit to calculate the break even point and the contribution margin per unit = sales price - variable costs. The question states that total costs are equal, but it doesn't say anything about variable or fixed costs.
Assuming that Gouda is above break even point, each sale will generate a higher operating profit since the contribution margin is higher.
Explanation:
