Answer:
For a manufacturer the budgeted income statement includes amounts from the sales, cost of goods sold, cash, and capital expenditures budgets (c)
Explanation:
Like a typical income statement, the Budgeted income statement would show its Sales Forecast, and the resultant costs of producing these volume projected. It will usually follow a trend consistent with the Previous years Business seasonality, peak and lows, and duration of consumer improved disposable income (e.g periods of tax credit, black friday etc).
In addition a Business will want to forecast its Cashflow and Capital expenditure (Balance Sheet) so as to have a general view of what to expect if circumstances turn out as planned and to have a picture of how much growth or decline it is projecting into the future.
Answer: Allocative efficiency occurs in the market.
Explanation:
Allocative efficiency is a concept that measures the success of a market mechanism for supplying consumers with the goods needed in the desired quantities and quality. Ability implies that there is no way to change production and consumption to maximize one person's benefit, thereby diminishing the other person's utility. Efficiency is a condition in which the maximum amount of goods and service is extracted from the available resources.
Answer:
The payoff of your portfolio shows a risk-less with time-T and stock value equal to $10.
The risk-free interest rate must be 5.26%
Explanation:
position Sr<10 Sr>10
buy stock Sr Sr
short call 0 -(Sr - 10)
long call 10 - Sr 0
total 10 10
Therefore, The payoff of your portfolio shows a risk-less with time-T and stock value equal to $10.
risk - free interest rate = [[strike price/expected value]/net cost] - 1
= [10/9.5] - 1
= 5.26%
Therefore, The risk-free interest rate must be 5.26%
Answer:
$67,600
Explanation:
income from operations = gross profit - operating expenses.
In this case, the income from operations = EBIT, it is not always that way because EBIT includes non-operating income, but in this case this doesn't exist.
Sales Revenue 320,000
- Sales Discounts 9,400
<u>- Sales Returns & Allowances 43,000 </u>
Net sales = 267,600
<u>- Cost of Goods Sold 153,000 </u>
gross profit = 114,600
- Advertising Expense 20,000
- Delivery Expense 7,600
- Insurance Expense 1,000
<u>- Rent Expense 18,400 </u>
income from operations = 67,600
