Accrued Net Income will be calculated as below:
Sales $72800
Less Expenses $20400
Cash Income $52400
Less: Depreciation $4900
Add: Accounts Receivable Inc $4500
Less: Reduction in Prepaid Exp $1900
Add: Reduction in Acc Liab $1700
Accrued Income $51800
Depreciation will be reduced as its an expense and all expenses will be reduced.
Increase in Accounts Recievables indicate there have been sales which have not been paid for yet, thus sales will increase and this needs to be added
Reduction in Prepaid Expenses refer to expenses being paid off earlier but now need to be recognised, thus these need to be added to expenses
Reduction in accrued liabilitites indicate that expenses of previous period have been paid off now thus those need to be reduced from cash expenses.
Answer:
A. $41,120.
Explanation:
Year Description Cash flow Present [email protected]%
0 Equipment cost ($30,000) ($30,000)
1-4 Additional CF $24,000 $69,929.10
4 Residual value $2,000 $1,184.16
Present value total $41,113.26
Based on the above calculation, the answer shall be A. $41,120.
<u>Solution and Explanation:</u>
As the utility function is concave in shape, so person is risk averse. Thus, he will not accept the gamvle.
The difference between utility at point A&C = 70 minus 65 = $5, is less than a the difference between A&B = 65 minus 55 = $10
<u>MCQ:
</u>
Answer is option a&d - risk averse people fear a lot for losing money, thus they overestimate the probability of loss
Since, shape of utility function is concave, hence the double derivative of utility with respect to wealth is negative, so utility falls at an decreasing rate , as wealth increases
Answer:
The correct answer is $907.76.
Explanation:
According to the scenario, computation of the given data are as follow:-
1¥ = 82.54$
1£ = 132.03¥
Convert pounds to us dollars= £ ÷ $ = £132.03 ÷ $82.54
= 1.60$ ÷ £
Mean, 1£ = 1.6$
She has £567.35 .
After converting the pound into the dollar, she will receive = £567.35 × $1.60
= $907.76
Hence, she receive $907.76 if she sells the pounds.
Answer: condition subsequent
Explanation: A condition subsequent is an incident or set of circumstances that bring something to a conclusion. A subsequent circumstance is being used as a symbol in a legal sense to put an end of one's constitutional rights or responsibilities.
This generally occurs when someone do anything illegal or unethical in the eyes of law. In the given case, Franco got employed by some other party although he had a contract with James that he cannot do that. Hence we can conclude that the given case depicts condition subsequent.
