Balance Sheet
Assets
Current Assets
Cash 37200
Accounts Receivable 36300
Less: Allowance for Doubtful Accounts (5000) [Computation: 36300-31300)
Supplies 3600
Total Current Assets 72100
Property, Plant, and Equipment
Land 17600
Building 75100
Equipment 47200
Total Property, Plant, and Equipment 139900
Total Assets $212000
Liabilities
Long term Liabilities
Mortagage Payable 19900
Owner's Equity
Terry, Capital 55200
Nick, Capital 72800
Frank, Capital 64100
Total Owner's Equity 192100
Total Liabilities and Owner's Equity $212000
Answer:
People should disregard schooling and thus work in the entire life period.
Explanation:
Condition 1--- Work throughout the 4 periods
The NPV = 
= 27,272. 7 + 24,793.3 + 22,539.4 +20,490.4
= 95,095.8
Condition 2 - Attend school and work later
The NPV = -28,000 + 
= -28000 + 41,322.31 + 37,565.7 + 34,150.6
= 85,038.61
Conclusion: Since the NPV of not going to school is higher, people should disregard schooling. They should work in the entire life period.
Answer:
The correct answer is letter "B": among the factors that are responsible for market risk.
Explanation:
Market risk is the threat of an investment value falling due to factors that affect all market-wide investments. Investors always take on a certain level of risk. There is always the risk that their investments do not achieve expected returns. The risk falls into two categories: <em>Systematic risk </em>and <em>Unsystematic Risk.
</em>
<em>Interest rates fluctuations, recession, and inflation are considered market risks.</em>
Answer: $6,000,000
Explanation:
Hi, to answer this question we simply have to multiply the total market capital of the company (20,000,000) by the percentage under preferred stock (30%) in decimal form.
Mathematically speaking:
20,000,000 x (30/100) = $6,000,000
Feel free to ask for more if needed or if you did not understand something.
Answer:
C) $4,000
Explanation:
To calculate economic profit we can use the following formula:
economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs
where:
- accounting profit = total revenue - accounting cost = $50,000
- implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000
economic profit = $50,000 - $46,000 = $4,000