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2 years ago

In the long run, the entry of new firms in an industry:

Business

1 answer:

Aleks [24]2 years ago

5 0

Answer:

d. Benefits consumers by forcing prices down to the level of average cost.

Explanation:

In the long run, as firms enter into the industry, price would fall. This is due to the law of supply which says the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

The entry of firms into the industry in the long run drives economic profit to zero and ensures that price is equal to marginal cost or average cost.

I hope my answer helps you

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On January 2, 2020, All Good Company purchased 6,000 shares of the stock of Big Bad Company, and DID obtain significant influenc

Yuri [45]

Answer:

$155,000

Explanation:

Calculation to determine the book value of the investment that should be reported at year end by All Good Company

Initial investment (6,000* $10.00 per share) $60,000

Add: Net income ($450,000*30%) $135,000

Less: Dividend ($40,000)

Ending balance of investment $155,000

($60,000+$135,000-$40,000)

Therefore the book value of the investment that should be reported at year end by All Good Company is $155,000

8 0

2 years ago

Exercise 1-13 Identifying effects of transactions using the accounting equation LO P1 Ming Chen began a professional practice on

Oksi-84 [34.3K]

Answer:

I used an excel spreadsheet since there is not enough room here.

Explanation:

Download pdf

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3 years ago

Which of the following statements concerning the cash budget is CORRECT? a. Depreciation expense is not explicitly included, but

Ostrovityanka [42]

Answer:

a. Depreciation expense is not explicitly included, but depreciation's effects are reflected in the estimated tax payments.

Explanation:

The cash budget is the budget that represents the receipts and payment of transactions held in cash

It includes the interest and dividend payment as it shows the outflow of cash if payment is made in cash

Moreover, it also affects the DSO and includes cash inflows with related to the long term sources such as issuance of bonds

But as we know that the depreciation is a non cash expense so it not much included but its effects are projected in the payment of tax

7 0

3 years ago

Becky hunter is an accountant employed by faf enterprises. recently she has spent much of her time working on defining measures

boyakko [2]

<span>Becky is a private accountant whose work is mainly with managerial accounting. Managerial accounting is a process o identifying, measuring, analyzing, interpreting, and communicating information in order to achieve the goals of an organization. Another name for managerial accounting is cost accounting.</span>

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3 years ago

The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of

kirill [66]

Answer:

The present value index is 0.91 which is less than 1. So, the investment should not be accepted.

Explanation:

Present Value Index : It shows the ratio between the sum of present value of all years cash inflows after applying the discount rate and initial investment.

In mathematically,

Present value index = Sum of present value of all years cash flows with discount rate ÷ Initial Investment

where,

Present value = Net cash flow × Discount rate

So,

Year 1 = $180,000 × 0.909 = $163,620

Year 2 = $120,000 × 0.826 = $99,120

Year 3 = $100,000 × 0.751 = $75,100

Year 4 = $90,000 × 0.683 = $61,470

Year 5 = $90,000 × 0.621 = $55,890

Now, Sum all the yearly cash inflows which equals to

= $163,620 + $99,120 + $75,100 + $61,470 + $55,890

= $455,200

So, the present value index = $455,200 ÷ $500,000 = 0.91

Hence, the present value index is 0.91 which is less than 1. So, the investment should not be accepted.

5 0

3 years ago