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Blizzard [7]
2 years ago
14

A delivery company purchased a bunch of new trucks three years ago for $6 million. These trucks can be sold today for $5.3 milli

on. The delivery company's current balance sheet shows net fixed assets of $3.2 million, current liabilities of $900,000, and net working capital of $215,000. If all the current assets were sold today and converted into cash, the delivery company would receive $1.25 million.
Calculate the book value of the delivery company's total assets today.
Business
1 answer:
mafiozo [28]2 years ago
4 0

Answer:

The net book value  of the company = $3,415,000

Explanation:

<em>The historical cost concept states that assets should be stated at their historical cost. Under this concept, the value of a company is the the net-book value of its assets. The net book value of an asset is its historical cost less the accumulated depreciation to date.</em>

The book value of the delivery company

Net fixed assets                          $3, 200,000

Net working capital                   <u> $215,000</u>

Total book value                       <u> $3,415,000</u>

The net book value  of the company = $3,415,000

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Jacques lives in San Diego and runs a business that sells boats. In an average year, he receives $728,000 from selling boats. Of
Gwar [14]

Answer:

1. <u>implicit cost</u>

2.<u> explicit cost</u>

3. <u>implicit cost</u>

4. <u>explicit cost</u>

Explanation:

Implicit costs refer to those costs that represent opportunity cost. In simple terms they are notional or those which haven't been actually incurred but considered.

Opportunity costs refer to the cost of sacrificed alternatives when an alternative is opted for. For instance, a student pursuing post graduation incurs implicit cost in the form of income foregone had he chosen to work instead for the same duration.

In the given case, the foregone rental income Jacques would've earned had he chosen to rent out his showroom represents opportunity cost or implicit cost.

Similarly, the salary Jacques sacrificed by working in boat business represents implicit cost.

The wages and utility bills that Jacques pays and wholesale cost which he pays represent costs which have actually been incurred, which are termed as explicit costs.

6 0
3 years ago
On July 1, 20X4, Pillow Corp. obtained significant influence over Sleep Co. through the purchase of 3,000 shares of Sleep's 10,0
puteri [66]

Answer: $18,000

Explanation:

Income from investment is the percentage of the acquired company's income that the company that acquired it will report as their own based on their percentage of ownership.

By purchasing 3,000 shares out of 10,000, Pillow Corp owns;

= 3,000 / 10,000

= 30% of Sleep Co.

These shares were bough on July 1 so the relevant period will be half a year.

At the end of the year, Pillow Corp will report 30% of half of Sleep Co. income as income from investment for the year.

= 30% * 120,000 * 0.5

= $18,000

3 0
3 years ago
Jaycee Jeans sold 40 pairs of jeans at a price of $40. When it lowered its price to $20, the quantity sold increased to 60 pairs
grigory [225]

Answer:

The answer is: A) 0.6

Explanation:

First we will calculate the midpoint for units:

  • change in units = 40 - 60 = -20
  • average units = (40 + 60) / 2 = 50
  • midpoint for units = 20 / 50 = 0.4 (we only use positive numbers)

Now we will calculate the midpoint for price:

  • change in price = 40 - 20 = 20
  • average price = (40 + 20) / 2 = 30
  • midpoint for units = 20 / 30 = 0.67

Finally we divide 0.4 / 0.67 = 0.6

4 0
2 years ago
In the circular flow model, households provide<br> to firms. This is represented by the letter A.
Lana71 [14]

Households would provide factors of production to firms.

  • The circular flow demonstrates the movement of money in the economy.
  • The two-sector model of circular flow comprises households and firms.
  • Money first flows from producers to households in return for production services in the form of wages.  
  • Finally, return to producers back in the form of payment for the purchase or expenditure made by households.

<h2>What do you mean by circular flow of money?</h2>
  • The circular flow model demonstrates how money moves through society.
  • Money flows from producers to workers as wages and flows back to producers as payment for products.
  • In short, an economy is an endless circular flow of money.

<h2>What are the two types of circular flow?</h2>

There are two types of circular flow:

  • Real flow: The term real flow means the flow of factor services from households to firms.
  • Similarly, the flow of goods and services from firms to households.
  • Money flow: The money flow refers to the flow of factor payments from firms to households for factor services.

Learn more about the circular flow of money here:

brainly.com/question/24114630

#SPJ10

5 0
1 year ago
You started a venture 2 years ago with $400,000 dollars and own 60% of the 500,000 shares issued. What is the pre and post money
Colt1911 [192]

Answer:

Alpha Venture :Post money $1,000,000

Alpha Venture :Post money $800,000

Beta Ventures Post money $400,000

Beta Venture Pre-money $800,000

Kappa Ventures Post money $200,000

Kappa Ventures Pre money $400,000

Explanation:

Calculation for Alpha Ventures Post money:

$200,000/20%=$ 1,000,000

Alpha Ventures Pre-money will be :

$1,000 000- $200,000

= $800,000

Calculation for Beta Ventures Post money

= $400,000

Beta Ventures Pre-money will be:

=$ 400,000+$400,000

=$800,000

Calculation of Kappa Ventures Post money:

= $200,000

Kappa venture Pre-money will be:

= $200,000+$200$000

= $400,000

5 0
3 years ago
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