Answer:
$208,000
Explanation:
Net income= Revenue -expenses
The first step is to calculate the total revenue
Total revenue= credit sales+cash collected from customers
= $60,000 + $340,000
= $400,000
The total expenses can be calculated as follows
= Rent expense + salaries expense + utilities expense
= (40,000/2)+$120,000 + ($50,000 + $2,000)
= $20,000 + $120,000 + $52,000
= $192,000
Therefore the accrual net income for the year can be calculated as follows
= $400,000 - $192,000
= $208,000
Hence the accural net income for the year is $208,000
Answer:
Exports are the goods and services a nation produces and sells to other nations: imports are the goods and other services a nations buys from other nations.
Explanation:
All goods or services produced within the borders of a country are local products. If the local producer sells the products outside the boundaries of that country, those are exports.
If residents of a country buy goods or services made in other countries, those products are imports. Imports may be for consumption or materials to produce other goods.
Answer:
$10,974.05
Explanation:
Given that,
Amount to accumulated = $25,000 in two years
Interest rate = 9%
Let the amount be X,
Total amount after two years:
= Year 1 + Year 2
= X(1.09)^2 + X(1.09)
= 1.1881 X + 1.09X
= 2.2781 X
SO, Total amount after two years:
2.2781 X = 25,000
X = 25,000 ÷ 2.2781
= $10,974.05
Hence, the amount deposited at the beginning of each year is $10,974.
Answer:
a. Decrease
b. Decrease
c. Decrease
d. Increase
e. Increase
Explanation:
a. When the company's cost of production increases, this reduces the amount of profits they make. A lower than expected profit margin is frowned upon in the Financial market therefore some people will sell their shares in the company which will have the effect of decreasing market value.
b. An increase in a firm's cost of financing signals an increase in the riskiness of a company. It also means that the company will be paying more on interest which will reduce profits. These 2 thing will drive some investors away thereby reducing the market value.
c. A firm's value can be found by discounting its projected sales and dividends amongst others with a certain discount rate. If a higher rate is used, the present value and hence the market value figure will be less.
d. When there is an increase in Sales revenue, it signals profitability for a company. Investors love profitable companies and will buy more of the company stock which will drive up the price.
e. Projected future profits can be used to calculate present value as well as serve as an indication of future profitability. Investors will buy more shares and drive up the market value.
