Answer
Retained earnings will be overstated by $38.40 million
Explanation:
The overstatement of retained earnings by this amount arises from the fact that if the depreciation of $64 million had been charged, the charge will have been tax deductible at 40% thus the amount overstated if (1-40%) x $64m =$38.4m.
Based on present value calculations, the following are true:
- A. Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return.
- B. The security that earns an interest rate of 6.00%.
- B. An investment that matures in five years.
- B. Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases.
<h3>What is true of present value calculations?</h3>
Present value relies on the interest rate and the number of periods that an investment. The longer the investment period, the lower the present value.
The higher the interest rate, the lower the present value as well, For this reason, the 6% investment will be worth less today and the five year investment will have a lower price today.
Find out more on present value at brainly.com/question/15904086.
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Answer:
Price will rise because of input
while demand decrease because of competition increasing their market share.
Explanation:
as the company imports sugar an input price increase will make for an increase in the price. As national sugar probably was alkready at higher cost than imported sugar both; national sugar and imported sugar will be of the same price.
Also, the quantity demanded for our customer may decrease as we don't have the firepower to advertize as Coca nad Pepsi hence, the demand will decrease if their commercial campaing are successfully
Answer:
b. $6,200
Explanation:
<u>Assets:</u> things or right owned by the company which can generate cash in the future
<u>Liabilities:</u> obligation to pay or do from the company in favor of third parties.
<u>Equity:</u> capital accounts and earnings from the business
Based on this definition we can determinate the following liabilities accounts:
Accounts Payable 1,900
Notes Payable <u> 4,300 </u>
Total liabilities 6,200
