What does full disclosure mean? how does full disclosure affect financial reporting? are there any ethical implications to what
1 answer:
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Answer:
1) 10%
2) Depends on the selling price
Please see the attachment
Explanation:
We have 2 scenarios. In both cases we have to calculate the income as the product of the selling price by the units sold, and then we must calculate the increasing percentage to compare the actual value with the last year value.
Let's see the attachment and consider that:
P is the selling price of the sofas
x is the units sold
So, the income is the result of the selling price, by the units sold, respectively for each year. Then, the increase is the ratio between the actual year income minus last year income, over last year income. Finally, the increase percentage is the result of multiplying the increase value, by 100.
We can conclude that for the first scenario, the selling increase percentage is 10%, meanwhile, for the second scenario, the selling increase percentage depends on the selling price; that means, the higher the selling price, the increase percentage will be lower, but anyway, there will be increase.
Answer:
$109,688.89
Explanation:
According to the scenario, computation of given data are as follows,
Formula for Net present value are as follows,
NPV = -Investment in fixed asset - Net working Capital + Operating cashflow × ( 1 - ) ÷ r + Net working capital ×
Where, r = rate of return
n = number of years
By putting the value, we get
NPV = -28,000 - 2,800 + 32,500 × ( 1 - ) ÷ 0.14 + 2,800 ×
By solving the above equation, we get
NPV = $109,688.89