Answer:
Explanation:
c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.
The answer is 5400 because "at the end of the 4th quarter is only consists of 3 months (oct-dec). By taking the total amount you paid for all 6 months minus what you have to pay for 3 months.
Answer: c. it ensures productive efficiency.
Explanation:
The average cost pricing is used by the government in order to control the price that may be charged by the monopolist.
With the average cost pricing, monopolists are forced to reduce the price that twhy charge for a product to a point whereby the average total cost of the firm and the market demand curve will intersect.
This is vital as it brings about productive efficiency, increase production and also the reduction in the price of a good.
Therefore, the correct option is C "it ensures productive efficiency".
The basic science process skills include the following: observing, inferring, measuring, communicating, classifying and predicting.
When these skills are well developed in a scientist, such a scientist will be able to identify variables, formulate hypothesis, interpret data, conduct experiment and formulate models.<span />
Answer:
1a. Payback period = <u>Initial outlay</u>
Annual cost saving
= <u>$484,500</u>
$85,000
= 5.7 years
b. The equipment should not be purchased because it has a longer payback period than the company's required payback period.
2a. $
Annual cost saving 85,000
Less: Depreciation <u>40,375</u>
Annual profit <u>44,625</u>
Simple rate of return = <u>Annual profit</u> x 100
Initial outlay
<u>$44,625</u> x 100
$484,500
= 9.21%
Depreciation = <u>Cost - Residual value</u>
estimated useful life
= <u>$484,500 - 0</u>
12 years
= $40,375 per annum
2b, The equipment should not be purchased because the simple rate of return is lower than the company's required rate of return.
Explanation:
Payback period is the ratio of initial outlay to annual cost saving. It is the period in which the initial outlay is recouped.
Simple rate of return is the ratio of annual profit to initial outlay. It measures the rate of return on capital invested.
Answer:
Decrease price and affect the equilibrium quantity in an indeterminate way.
Explanation:
When there is a fall in the demand for a particular product then as a result there is a leftward shift in the demand curve for this product. On the other hand, if there is an increase in the supply of a product then as a result there is a rightward shift in the supply curve of this product.
Hence, there is a fall in the equilibrium price level and the effect on equilibrium quantity is indeterminate because we don't know the magnitude of the shifts of demand and supply curve.