Answer:
$3500 is deductible
Explanation:
The question is not complete . Please see the solution below :
The Investment Interest expense can be set off against Net Investment income ( Interest income - Investment expenses i.e $25000-$2000=$23000) to the extent and the remaining is carried forward to the next year. so here the investment interest expense is wholly set off against the interest income i.e $3500 is deductible
Answer:
(i)New firms will enter the market.
(iii)In the long run, all firms will be producing at their efficient scale
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market price is set by the forces of demand and supply.
If firms are earning positive profits, in the long run new firms would enter into the industry and this woold drive positive profits to zero. As a result , firms would be operating at the efficient scale.
I hope my answer helps you
Answer:
Literally like everyone here speaks english
Explanation:
Answer:
This question requires us to calculate cash flows from operations and net income. Each of them is calculated as follow.
Cash flows from operations
Cash flow from operation comprises of cash generated or spend on core business related purchase and sale. It will be calculated as follow.
Cash from operations = 25,000 - 100,000 =($ 75,000).
Net income
Net income will be calculated using simple cashflow equation given below.
Closing cash balance = opening cashflow + net income + depreciation + cash flow from operations + cash flow investment + cash flow finance
25,000 = 55,000 + net income + 10,000 - 75,000 - 250,000 + 170,000
Net income = 115,000
