Answer: $40
Explanation: Cost can be defined as the total resources of several forms used by the firm for the production of output. Cost can further be categorized into two parts fixed cost and variable cost. The cost that remains unchanged irrespective of the level of output is called fixed and the one that change with the level of output is called variable cost.
Therefore,
cost = fixed cost + variable cost
$175 = fixed cost + ($33.75 * 4 )
fixed cost = $175 - $135
= $40
Answer:
Explanation:
Present value of annuity factor = 4,611,018/370,000 = 12.46
The we look at the present value table of annuity where n=20 and find annuity factor of 12.46. In the case of i=5% the annuity factor is 12.46. So implicit rate in the lease agreement in 5%.
Answer:
The correct option is D
Explanation:
The net cash will be computed as:
Net Cash = Bonds sold amount - Purchases amount of common stock
where the values are:
Bonds sold amount is $22,040
Purchases amount of common stock is $1,700
Putting the values:
= $22,040 - $1,700
= $20,340
The net cash amounts to $20,340 which is an inflow from the investing activities.
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