Profit is simply the difference of revenue and total
cost.
Profit = Revenue – Total Cost
where total cost is the sum of explicit cost and implicit
cost
Profit = Revenue – (Explicit cost + Implicit cost)
The explicit cost is:
Explicit cost = 1000 + 200 + 3000 + 1000 = $5,200
So finding for implicit cost:
-200 = 6000 – (5,200 + Implicit cost)
Implicit cost = $1,000
Answer:
<span>Your implicit costs are 1,000</span>
Answer:
$125,000
Explanation:
Zwick company bought 25,000 shares of Handy corporation
In 2021 Handy corporation reported $208,100 net income
The cash dividend reported is $5.00 per share on all its 208,000 shares
Therefore the Zwicks company dividend revenue from Handy corporation in December 2021 can be calculated as follows
= 25,000 shares × $5.00
= 125,000
Hence Zwick's dividend revenue from Handy corporation is $125,000
Answer:To focus on a global market
Explanation:
Focusing on a global market can help with sells and you can profit off of it.
The journal entries are as follows
On December 31
Bad debt expense Dr $3,080 ($616,000 × 0.50%)
To Allowance for doubtful debts $3,080
(Being the estimated bad debt expense is recorded)
On Feb 01
Allowance for doubtful debts Dr $308
To Account receivable $308
(Being the written off amount is recorded)
On June 5
Account receivable $308
To Allowance for doubtful debts Dr $308
(Being the uncollected amount is recorded)
On June 5
Cash Dr $308
To Account receivable $308
(Being the cash received on account is recorded)