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3 years ago

Classify the following as either a revenue or a capital expenditure.

Business

1 answer:

Naily [24]3 years ago

4 0

Answer and Explanation:

The capital expenditure is the expenditure which is held for a capital asset i.e fixed assets for improving life, production, etc. It is a one-time expenditure

While on the other hand the revenue expenditure is the expenditure which is incurred on daily basis i.e frequently like repairs, maintenance

So based on the above, the classification is as follows

a. Capital expenditure

b. Revenue expenditure

c. Revenue expenditure

d. Capital expenditure

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Kaskin, Inc., stock has a beta of 1.2 and Quinn, Inc., stock has a beta of 0.6. Which of the following statements is most accura

Anastaziya [24]

Answer:

The equilibrium expected rate of return is higher for Kaskin than for Quinn.

Explanation:

Option A “The equilibrium expected rate of return is higher for Kaskin than for Quinn” is more accurate because the expected return is calculated by multiplying the risk premium with beta value and then adding with risk-free return. However, if the beta value is high, then the magnitude after multiplying with the risk premium will be high. Moreover, is magnitude will be added to risk-free return to find the expected return. Thus, it can be seen that Kaskin has high beta 1.2 as compared to Quinn’s beta value 0.6. So, the Kaskin has a higher expected return.

6 0

3 years ago

Short Company purchased land by paying $10,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten ye

romanna [79]

Answer:

(D) $71,446

Explanation:

we will calcualte the present value for an 11 payments annuity-due (there is eleven payment of 10,000 if we count the one at purchase date) which couta is 10,000 discounted at 10%

$C \times \frac{1-(1+r)^{-time} }{rate} (1 +r ) = PV\\$

C 10,000

time 11

rate 0.1

$10000 \times \frac{1-(1+0.1)^{-11} }{0.1} (1 + 0.10) = PV\\$

PV $71,445.6711

rounding to the nearest dollars: 71,446

6 0

3 years ago

Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that follows. Assume that all c

ozzi

Answer:

See below

Explanation:

Computation of free cash flow for Monach textiles, 2017

EBIT = EBT + Interest expense EBIT

EBIT = $408 + $50

EBIT = $458

Tax rate = Tax / EBT

Tax rate = $163.20 / $408

Tax rate = 0.4 = 40%

Operating cash flow = EBIT × (1 - Tax rate) + Depreciation - Change in net working capital - Capital expenditure

= $458 × (1 - 0.4) + $82 - ($640 - $360) - ($460 - $280)

= $274.8 + $82 - $280 - $180

= $274.8 + $92 - $100

= $256.8

5 0

2 years ago

The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate

podryga [215]

Answer:

it would be easier if you enter these into a tabular format, so you can then do the calc on excel or copy and paste here for ppl to see it clearly. The presentation of business information is important for the intended audience

Explanation:

6 0

2 years ago

Sag manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%

Tasya [4]

The question is incomplete. The following is the complete question.

Sag Manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%. If Sweet will break even at this level of sales, what are the fixed costs?

Answer:

Fixed costs are $480000

Explanation:

The break even sales is the value of total sales or total revenue where it equals total cost and the company makes no profit or no loss. The break even in sales is calculated by dividing the fixed costs by the contribution margin ratio.

Break even in sales = Fixed cost / Contribution margin ratio

Plugging in the available values we can calculate the value of fixed cost. We know that the break even in units is at 400000 units. Thus, its value in sale will be 400000 * 6 = 2400000

2400000 = Fixed cost / 0.2

2400000 * 0.2 = Fixed cost

Fixed costs = $480000

6 0

3 years ago