Answer:
enter into the industry
fall
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Answer :
Accounting rate of return = 0.0432 = 4.32%
Explanation :
As per the data given in the question,
Depreciation per year = (Cost - Salvage) ÷ Useful life
= ($810,000 - $10,000) ÷ 8 years
= $100,000
Annual Net income = Annual net cash flow - Depreciation
= $135,000 - $100,000
= $35,000
Accounting rate of return = Annual net income ÷ investment
= $35,000 ÷ $810,000
= 0.0432
= 4.32%
We simply applied the above formula
Jason McCurdy's gross pay was $684.21.
Given that the regular hourly rate is $10.75. During a two-week period, he worked 80 hours (40 hours each week) and had deductions of $110 for federal income tax, $53.32 for social security tax, and $12.47 for Medicare tax.
Total working hours = 80 hours
Hourly rate = $10.75
Total payment = $10.75 × 80
= $860
Deductions = Federal Income Tax + Social Security tax + Medicare Tax
= $110 + $53.32 + 12.47
= $175.79
Gross Pay = Total Payment - Deductions
= $860 - $175.79
= $684.21
To know more about the income tax system refer to:
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Depreciation expenses should be added to after-tax ebit to get operating cash flows because it is a non-cash charge deducted from revenue in the net income calculation.
Cash flow is the movement of money, real or virtual. Strictly speaking, cash flows are specifically payments from one central bank account to another. The term "cash flow" is most commonly used to describe cash flow. Cash flow refers to the net balance of cash entering or exiting a company at a particular point in time.
Cash flows in and out of business all the time. For example, when a retailer purchases inventory, money flows from the store to the supplier.
Learn more about cash flows here: brainly.com/question/735261
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Answer:
E. $40,600
Explanation:
Calculation for the amount of net income reported on Sparty's income statement
Revenue $97,000
Less: Operating Expenses $39,000
Profit Before Tax $58,000
(97,000-39,000)
Less Taxes $17,400
Net Income $40,600
($58,000-$17,400)
Therefore the amount of net income reported on Sparty's income statement will be $40,600
