<span>profit-and-loss statement</span>
I would say that for most people, buying an apartment or a house would be the most major thing they could do that would affect their net worth. Initially it would be mostly a liability at first but as it appreciates, especially if it is in a big city where the population keeps growing then it most likely will appreciate and then the owner's assets will increase since their equity will increase.
Answer:
Option (b) is correct.
Explanation:
Given that,
Total Overhead Cost = $477,000
Number of Units of Product XY = 72,000
Number of Units of Product M = 108,000
Total overhead allocated to Product XY using the current system:
= (Total Overhead Cost ÷ Number of units produced in total) × Number of Units of Product XY
= ($477,000 ÷ 180,000) × 72,000
= $2.65 × 72,000
= $190,800
Answer:
Option (B) is correct.
Explanation:
Given that,
Project 1:
Initial investment = $120,000
Cash inflow Year 1, Year 2, Year 3, Year 4, Year 5 = $40,000
Hence,
Annual cash flow = $40,000
Payback period:
= Initial investment ÷ annual cash inflow
= $120,000 ÷ $40,000
= 3 years
Therefore, the payback period for Project I is 3 years.
