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Vanyuwa [196]
3 years ago
7

Dan's Car Wash produces $150,000 in revenues and incurs $120,000 in labor wages, materials, rent, and other explicit costs. More

over, Dan gave up a $40,000-a-year job as a hotel valet to start his car wash business. Dan's economic profit is _____, and he _____ earning a normal profit.
Business
1 answer:
Nadya [2.5K]3 years ago
7 0

Answer:

-$10,000 ; is

Explanation:

The computation is shown below:

The economic profit is

= Revenues produced -  labor, wages, materials, rent, and other explicit costs incurred - giving amount

= $150,000 - $120,000 - $40,000

= -$10,000

Now the normal profit is

= Total revenues produced - Total cost incurred

= $150,000 - $120,000

= $30,000

So, the economic profit is -$10,00 and he is earning a normal profit

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You purchased 1,350 shares of stock in Natural Chicken Wings, Inc., at a price of $43.58 per share. Since you purchased the stoc
zmey [24]

Answer:

12.09%

Explanation:

The computation of the total percentage return on this investment is shown below:

= {(Sale price of the stock - purchase price of stock + dividend received per share) ÷ purchase price of stock) × 100

= {($47.76 - $43.58 + $1.09 ) ÷ $43.58} × 100

= ($5.27 ÷ $43.58 ) × 100

= 12.09%

We simply applied the above formula so that the total percentage return on this investment could come

4 0
3 years ago
A company reports 2021 pretax accounting income of $66 million, but because of a single temporary difference, taxable income is
Sergeeva-Olga [200]

Answer:

Income tax expense $1,000,000 Dr.

Deferred tax liability $7,750,000 Dr.

To income tax payable $8,750,000 Cr.

Explanation:

Given the following :

Pretax accounting income = $66 mollion

TAXABLE INCOME = $35 million

Tax rate = 25%

Income tax payable:

Income tax rate × taxable income

25% × 35,000,000

= $8,750,000

Deferred tax liability :

(pretax income - taxable income) × tax rate

($66 - $35) million × 25%

$31,000,000 × 25%

= $7,750,000

Income tax expense :

Deferred tax + income tax payable

$(8,750,000 - 7,750,000)

= $1,000,000

8 0
3 years ago
Pick the false statement from below. Multiple Choice Expectations of lower inflation rates in the future tend to lower the slope
bixtya [17]

Answer: The term structure of interest rates and the time to maturity are always directly related.

Explanation:

The term structure of interest rates shows the relationship between interest rates and the different maturity periods of bonds. Normally, these move in the same direction i.e., the higher the maturity period, the higher the interest rate.

This however is not a given. It might be expected for instance that interest rates might drop in future. In such a situation, the interest might reduce with a longer maturity period which would depict an inverse relationship instead of a direct one.

8 0
3 years ago
On december 31, 2015, wintergreen, inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. complete the necessary
RideAnS [48]

<u>Journal entry for the issuance of Bonds:</u>

It is given that on December 31, 2015, wintergreen, inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. That means the proceeds from issue of these bonds are 150,000*93.25/100 = $139,875 and the discount on issue of bonds shall be = 150,000-139875 = $10,125.

The Journal entry for the issuance of Bonds shall be as follows:

December 31, 2015

<u>Account Titles </u>    <u>Debit</u>   <u>Credit</u>

Cash             $139,875

Discount on Bonds Payable  $10,125

Bonds Payable              $150,000

(Being bonds issued on discount)


6 0
3 years ago
A Food Marketing Institute found that 52% of households spend more than $125 a week on groceries. Assume the population proporti
kkurt [141]

Answer:

P(p>0.38) = P(z>-2.79)

And using the complement rule we got:

P(p>0.38) = P(z>-2.79)=1-P(Z

Explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".  

Solution to the problem

For this case wwe know that p = 0.52 and n = 99 and we can check if we can use the normal approximation for the proportion distribution.

np= 99*0.52= 51.48>10

n(1-p) =99*(1-0.52) = 47.52>10

So then we can use the normal approximation.

The population proportion have the following distribution

p \sim N(p,\sqrt{\frac{p(1-p)}{n}})

The mean is given by:

\mu_{p} = 0.52

And the standard error is given by:

\sigma_{p} = \sqrt{\frac{0.52*(1-0.52)}{99}}= 0.0502

We want to calculate this probability:

P(p >0.38)

And for this case we can calculate the z score given by:

z = \frac{p \mu_p}{\sigma_p}

And replacing we got:

z=\frac{0.38-0.52}{0.0502} = -2.79

And using this formula:

P(p>0.38) = P(z>-2.79)

And using the complement rule we got:

P(p>0.38) = P(z>-2.79)=1-P(Z

4 0
4 years ago
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