Answer: b. 233,500
Explanation:
The expected cashflow is;
= (EBIT * (1 - tax) ) + Depreciation - change in net working capital - capital expenditure
= (270,000 * (1 - 25%)) + 85,000 - 19,000 - 35,000
= $233,500
Answer: D. U.S. Treasury securities and Discount loans to banks.
Explanation: When examining the Fed's balance sheet, in most periods, the two most important assets are U.S. Treasury securities and Discount loans to banks. The Fed's balance sheet balance sheet includes a large number of distinct assets and liabilities containing a great deal of information about the scale and scope of its operations. Of these assets the U.S. Treasury securities and Discount loans to banks are paramount.
U.S Treasury securities are such as bills, notes and bonds issued by the U.S. government viewed as having virtually no credit risk. As such, they are debt obligations of the U.S. government.
Discount loans to banks are direct short term loans provided to banks by the Fed to meet temporary shortages of liquidity caused by internal or external disruptions.
Answer: b. $30; $20; $0
Explanation:
<em>Admission prices to Dollywood are $50 for a one-day ticket, $80 for a two-day ticket, and $100 for an annual pass. Based on these prices, the marginal cost of visiting Dollywood the second day is </em><em><u>$30</u></em><em>, the third day is </em><em><u>$20</u></em><em>, and the fourth day is </em><em><u>$0.</u></em>
The marginal cost is the extra cost per day of going to Dollywood.
Second day
Marginal cost = Second day price - First day
= 80 - 50
= $30
Third day
Marginal cost = Third day price - Second day
= 100 - 80
= $20
Fourth Day
Marginal cost = Fourth day price - third day
= 100 - 100
= $0
Answer:
3
Explanation:
Data provided in the question:
Sales for the last four months :
8, 10, 15, and 9 units
Last four forecast of sales:
9, 11, 8 and 12 units
Now,
The mean absolute deviation (MAD) value of these forecast will be calculated as:
MAD = [ ∑|Sales - Forecast sales| ] ÷ [ Total number of forecast ]
or
MAD = [ |8 - 9| + |10 - 11| + |15 - 8| + |9 - 12| ] ÷ 4
or
MAD = [ 1 + 1 + 7 + 3 ] ÷ 4
or
MAD = 12 ÷ 4
or
MAD = 3
Answer:
C. Insurance expense will increase $2,250
Explanation:
On April 1 2016, the following journal entry will be recorded in respect of the premium paid on a one year insurance policy:
Debit Credit
Prepaid Insurance $3,000
Cash $3,000
The year end given in this question is December 31, 2016 and the insurance premium is for one year and since the insurance premium is paid on April 1, 2016, therefore, only expense in respect of 9 months i.e. from April 1, 2016 to the December 31, 2016 will be recognised in this year. Remaining expense of three months will be recognised in the Year ended December 31,2017.
The following Journal entry will be recorded in respect of insurance expense in accounts on December 31, 2016.
Debit Credit
Insurance expense(3,000*9/12) 2,250
Prepaid Insurance 2,250
So the answer will be C. Insurance expense will increase $2,250
