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MariettaO [177]
3 years ago
9

Which of the following is an example of passive income? (1) portfolio income, including interest, dividends, annuities, and roya

lties (2) income from rental real estate earned by a no real estate professional (3) winnings from gambling (4) state and local refunds
​
Business
1 answer:
mart [117]3 years ago
8 0

The examples of passive income are-

  • portfolio income, including interest, dividends, annuities, and royalties
  • income from rental real estate earned by a no real estate professional
  • state and local refunds

Explanation:

Passive income is the incomes generated without the active participation of the person. In general, passive involves an upfront investment in the beginning after which a regular income source is generated. This constitutes mostly subsidiary activities. E.g. income generated from the rental properties, dividends, royalties and portfolio investment is considered to be passive in sense.

In the above examples-

  • Interest, dividends, annuities, and royalties- It is a source of passive income since direct involvement of person is not required and involves initial investment in buying of stocks beyond which person enjoys annuities and dividends.
  • Income from rental real estate earned by a no real estate professional- This is also an example of passive income. Once the investment is done, personal presence is not required for income generation. Hence it qualifies for passive income.
  • winnings from gambling- it is not a source of passive income. A person presence is utmost (then only he can involve in gambling activities) for revenue generation.
  • state and local refunds- This is a passive income since refunds are done by the concerned bodies and personal involvement is not needed.
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White raven [17]

Answer:

Cash flows from Financing Activities $4,000

Explanation:

Computation of cash flows from financing activities

Additional short-term borrowings $20,000

Less Cash dividend paid ($16,000)

Cash flows from Financing Activities $4,000

Therefore the Cash flows from Financing Activities will be $4,000.

6 0
3 years ago
g Swifty Corporation issued 3,100 5%, 5-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1
slamgirl [31]

Answer:

Dr Cash     $3,100,000

Cr Bonds payable            $3,100,000

Explanation:

Since the bonds were issued at face value of $1000 each,the cash proceeds received from the entire issue of 3,100 bonds can be computed thus:

Cash proceeds=$1000*3,100=$3,100,000

The cash proceeds imply that cash inflows have increased by $3,100,000, as a result cash account should be debited with $3,100,00o while the same amount is credited to bonds payable since an increase in  debt obligation should be a credit entry.

8 0
3 years ago
the graph to the right depicts the per unit cost curves and demand curve facing a shirt manufacturer in a competitive industry 2
natulia [17]

The firm will exit or leave the industry as its not making any profits.

<h3><u>CALCULATION OF THE PROFITS</u></h3>

According to the Question,

The firm produces at P = MC

Where we know,

Q = 55 units

P = $4.78

ATC or Average Total Cost = 6.76

AVC or Average Valuable Cost = 3

P > AVC so the firm produces to minimize losses at the MC = P.

Profit = ( P - ATC ) × Q

=( 4.78 - 6.76 ) × 55

= - 108.9

The profit is - 108.9 dollars per minute.

As the firm in the industry is making losses ( a negative profit ) so it  will exit the industry in the long run.

To know more about competitive firms, check the given link.

brainly.com/question/28104159

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8 0
2 years ago
If a firm accepts less than all of its prospective projects with positive NPVs when evaluated at their own risk-adjusted costs o
gtnhenbr [62]

Answer: True

Explanation:

  Yes, the given statement is true that the employing capital rationing is one of the process in which it placing some restriction on the investment amount of the project in an organization.

 In the capital rationing strategy, if the company accepts less amount from all its prospective projects along with some positive net profit value (NPVs) the it is evaluated on the basis of their own risk.

 The employ capital rationing helps in making various types of decisions related to investment for the company and in this system only limited projects are taken due to the limitation of the resources.  

 Therefore, The given statement is true.

3 0
3 years ago
Natalie wants to make a 25% profit on her $70,000 land investment (there is no mortgage). She figures agents charge a 6% commiss
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Natalie wants to make a 25% profit on a $70000 sale. That would be:

(125 ÷ 100) × 70000 = $87500.

Natalie wants to make $87500. But the agent would charge a 6% for the sale, Natalie will add a 6% to the $87500, that would be:

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On this $92750, there's a closing cost of $1200,

Add $92750 + $1200 = $93950.

$93950 to the nearest hundred will be $94000.

Natalie should make the final sale price $94000 in order to make a profit of %25.

7 0
3 years ago
Read 2 more answers
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