it is either foreign commerce or outsourcing but i am leaning more towards foreign commerce
hope this helps
Answer:
Calculation of sales returns = 5% of $12,700,000 =$ 635,000
Actual price of sales returns = 60 % of $ 635,000= $ 381,000
Difference in price = $ 635,000- $ 381,000= $ 254,000
1)
Sales Account $ 635,000 (dr)
Sundry Debtors / Customers Account $ 635,000 (cr)
2)
Sales Returns or Allowances $ 245,000 (dr) ( difference in price)
Trading Profit & Loss Account $ 245,000 (cr)
Answer:
14.6 %
Explanation:
Net assets value par share at the beginning of the year = $350 million / 14 million = $ 25
expense ratio = 1% = 0.01
Net assets value per share at the end of the year = ($ 400 - ( $ 400 × 0.01)) million / 15 million = $ 26.4
rate of return on fund = ( $ 26.4 - $25 + $ 2 + $ 0.25) / $ 25 × 100 = 14.6 %
Answer:
Option C, Double taxation on profits and individuals
Explanation:
The disadvantages of the corporation form of ownership are as follows -
a) It takes lot of time and hence is time consuming
b) The taxation gets double
c) Also, the formalities/protocols are very tough
Hence, the option C is correct
Answer:
Based on the profitability index method, the investment should not be accepted.
It does not produce enough cash flows to justify the investment.
Explanation:
The profitability index method measures the present value of benefits for by dividing the present value of benefits by the present of initial investments.
The present value of initial investment in this project remains RM400,000. The present value of incremental annual cash flows of RM80,000 after taxes for 5 years will be equal to:
RM80,000 * 3.668 = RM293,440
Then the next step is to divide the present value of benefits by the initial investment as follows:
RM293,440/RM400,000 = 0.7336 = 73.36%
The implication is that the present value of the benefits is less than the initial investment costs. The project should then be rejected.
