Answer:
Total cost= $100
Explanation:
Giving the following formula:
Joao pays each of his workers $50 per day while incurring a fixed cost of $100 and a variable input cost of $0.20 per cup of coffee for beans, cream, sugar, and paper cups.
I<u>f he does not hire any workers and does not sell a single cup of coffee, his total cost equals his fixed cost.</u>
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Total cost= $100
Answer:
The annual depreciation under SL is $16000 per year.
Explanation:
The depreciation expense under Straight Line (SL) method remains constant throughout an asset's useful life. The depreciation under straight line method is calculated by calculating the value of the asset that is eligible for depreciation, which is its cost less the salvage value (SV) and dividing it by the asset's useful life.
The straight line depreciation per year = (Cost - SV) / estimated useful life
Annual depreciation under SL = (100000 - 20000) / 5 = $16000 per year
Answer:
$9,900
Explanation:
With regards to the above, the percentage of credit sales method estimates bad debt expense by multiplying historical percentage of bad debt losses by the current period's credit sales.
Bad debt expense = Net credit sales × Bad debt loss rate
Bad debt expense = $198,000 × 0.05
Bad debt expense = $9,900
Therefore, estimated bad debt expense for the year is $9,900
When firm finances new investments, then set up accounts payable with suppliers, in which the balance that the firm must supply is called the investment in net "<u>Working</u>" capital.
This is because investment in net <u>working</u> capital is when the capital remains when the current liabilities are removed from the current assets.
The net <u>working</u> capital can be any of the cash, accounts receivable, inventory, and short-term investments or a combination of any of these elements.
The net <u>working</u> capital can be used to pay debts or invest in the growth of the company.
Hence, in this case, it is concluded that the correct answer is "Net Working Capital."
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