Answer:
Net income to be earned = $58,500
Explanation:
The net income to be earned can determined as follows:
<em>Net income = (sales value - Variable costs) - Fixed costs</em>
With an increase in selling price by 10%, the total sales value would now be
Total sales value = 110% × 315,000 =$346,500
Net income therefore would be
= (346,500 - 218,000) - 70,000
= $58,500
Not that the fixed cost will not change because it is independent of volume and also the variable cost has been stated to remain the same.
Answer:
monopolistically competitive industry.
Explanation:
this Asian restaurant is likely operating a monopolistically competitive industry. This kind of market structure is a combination of monopoly and competitive market. as it offers products and services which one similar. Also the question says that it has some barriers to entry, which is a characteristic of monopolistically competitive industry. Also goods are similar but not differentiated
Net Income flows from the income statement to the statement of retained earnings.
The balance sheet is balanced when net income from the income statement, less any dividends paid, is transferred to the retained earnings column. Additional connections- Long-term debt on the balance sheet is used to determine interest expenditure on the income statement.
Net income: In commerce, Net Income is the amount of cash left over on balance costs, like salaries and wages, the value of commodities or raw materials, and taxes, are paid. Net Profit is the amount that an individual keeps after paying taxes, insurance premiums, and retirement contributions.
Net Income.
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Answer:
The AC Corporation takes 46 Days average to pay back its accounts payable.
Explanation:
Average Accounts Payable = $7863.5
Cost of Goods Sold = $63,008
Number of Days in Accounting Period = 365
Days Payable Outstanding = (Average Accounts Payable / Cost of Goods Sold) x Number of Days in Accounting Period
Days Payable Outstanding = ($7,863.5 / $63,008) x 365
Days Payable Outstanding = 45.55
Therefor, the company takes an average of 46 days to pay back its accounts payable.
Answer:
B. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.
C. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.
Explanation:
A Perpetuity is a financial instrument that pays the holder forever or in perpetuity. For example, a bank paying you $800 per year for ever because you invested $40,000.
There are certain characteristics
Option B
The Perpetuity like most financial Securities has its value based on the underlying cashflows that it can accumulate. This means that it's value is based on the present value of it's future cashflow so the other the cash payments, the higher the present value.
Option C.
As the discounted cashflows in the nearer future will be discounted less by the discount rate as opposed to the cash flows further in future, the cashflows nearer to the present in time will contribute more to the Perpetuity than the cashflows further in time.
For example using that first example, $800 per year at a rate of 5% will be discounted to $762 in the first year but in year 10 will be discounted to $491.
