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slava [35]
3 years ago
12

To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operation

s, Deloch purchased the stereo systems for $140,000 and sold them for $250,000 cash. She provided her customers with a one-year warranty against defects in parts and labor. Based on industry standards, she estimated that warranty claims would amount to 2 percent of sales. During the year, she paid $2,820 cash to replace a defective tuner.
Prepare an income statement and statement of cash flows for Daun’s first year of operation. (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount.)
Business
1 answer:
vfiekz [6]3 years ago
4 0

Answer:

Daun’s first year of operation

Income statement

Sales Revenues                       $250,000

Less  

Cost Of Sales                           $ 140,000

Less

Expenses                                   $ 2820

Warranty Claims                          5000

Net Income                                   102,180

 

Daun’s first year of operation

Cash Flows statement

Net Earnings                       $250,000

Less  

Cash Paid for

Inventory Costs                           $ 140,000

Replacements                                   $ 2820

Net Income                                   107,180

 

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While a mechanic works on his car, a taxi driver takes Robert to his job as a warehouse laborer. At the end of his shift, he mak
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7 0
3 years ago
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Elena L [17]

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3 0
3 years ago
The internal rate of return (IRR) refers to the compound annual rate of return that a project generates based on its up-front co
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Answer:

The answer and procedures of the exercise are attached in the following archives.

Explanation:

Consider this explanation too

The IRR is the project’s expected rate of return, assuming that intermediate cash flows also earn the IRR. If this return exceeds the cost of the capital invested in the project, the excess value goes to the firm’s shareholders. Therefore, independent projects whose IRR is greater than the WACC should be accepted.

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Answer:

C. $2

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3,750-3500= 250

With the new worker, the firm produces an additional 250 units that cost $500 because this is the salary of the new worker and to calculate the cost of one additional unit you have to do the following:

250 units ⇒ $500

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x=( 1*500)/250= 2

The firm's short-run marginal cost is $2.

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