The contract that would be the answer I gave
Answer:
Part A.
$16.75
Part B.
Variable costing income statement for 2017
Fi
Part C.
Part D.
Absorption costing income statement for 2017
Explanation:
<em>The question is incomplete, however see explanations below</em>
Cost per unit - Variable Costing
<em>Only consider the Variable Manufacturing Costs</em>
Cost per unit - Variable Costing = $16.75
Cost per unit - Absorption Costing
<em>Consider Both Variable and Fixed Manufacturing Costs</em>
Answer:
The probability that at least one student majors in accounting=0.3×0.3×0.3=0.027
Explanation:
<em>Step 1: Determine the number of accounting majors in a business</em>
N=P×S
where;
N=number of accounting majors
P=probability of accounting majors
S=sample size
This can also be written as;
Number of accounting majors=probability of accounting majors×sample size
In our case;
Number of accounting majors=unknown, to be determined
Probability of accounting majors=30%=30/100=0.3
Sample size=3 business majors
Substituting;
Number of accounting majors=0.3×3=0.9
<em>Step 2: Determine the chance that at least one student majors in accounting</em>
The probability that at least one student majors in accounting=0.3×0.3×0.3=0.027
Answer:
Thus, payback period is = 3 years and 1.61 months
Explanation:
Payback period is the time it will take the project cash flows to recover the initial investment. The payback period for the project in question will be,
<u>Year</u> <u>Cash flow</u> <u>Remaining Amount</u>
1 850 (6900 - 850) = 6050
2 2400 (6050 - 2400) = 3650
3 3100 (3650 - 3100) = 550
As the year 4 cash flow is 4100, we know that the amount will be recovered in year 4. However, we will calculate the exact period or months in year 4 that it will take to recover total initial investment assuming that cashflow occurs at constant rate through out the year.
Time = 550 / 4100 * 12 = 1.61 months
Thus, payback period is = 3 years and 1.61 months
Answer:
a) I used an excel spreadsheet since there is not enough room here.
b) Net income = $8,950
Cash flows form operating activities =
Net income $8,950
Adjustments to net income:
- Increase in account payable <u> $250</u>
Net cash from operating activities $9,850
Net income is lower because a company must record revenues and expenses when they happen, not when they are associated with cash flows. This is why a company that makes all credit sales might have a large profit, but a small amount of cash (the opposite of this situation).
