Answer:
The following summarizes the solution to the given problem.
Explanation:
The given values are:
Sales,
= $660,000
Expenses,
= $255,453
Received cash revenues,
= $605,934
(a)
According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.
⇒ 
On substituting the given values, we get
⇒ 
⇒ 
($)
(b)
⇒ 
On substituting the given values, we get
⇒ 
⇒ 
($)
(c)
- The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status.
- It accepts the profits throughout a similar time frame.
The value of item is determined by its utility to the person who is purchasing it. If an item has high utility, then consumers are willing to pay more and will value the product more. If an item has low utility, it will not be very valuable to the person. People value items differently. the old saying that one's man's trash is another's treasure holds true here.
Answer: A. equal to marginal cost where it intersects the demand curve
Explanation:
In a pure competition, the market is efficient because it balances demand and supply and gives an equilibrium price that takes both of them into account.
In this market, the price is equal to the marginal revenue of a firm and the profit maximizing level of production is where the marginal revenue intersects the marginal cost.
The efficient level is therefore where price equals marginal cost. The same goes for a natural monopoly. If economic efficiency is to be achieved, the natural monopoly's price must equal the marginal cost at the equilibrium price.
Answer:
a. 10.14%
Explanation:
WACC = wE*rE + wP*rP + wD*rD(1-tax) whereby;
w= weight of...
r = cost of..
Find the market values;
Common equity(E) = 5,000,000* 8 = 40,000,000
Preferred stock(P) = 10,000,000
Debt (D) = 100,000 *1000 *0.96 = 96,000,000
Total value = 146,000,000
Therefore;
wE= 0.2740
wP = 0.0685
wD = 0.6575
Cost of capital;
rE = 19% or 0.19
rP = 15% or 0.15
rD = 9% or 0.09
WACC = (0.2740*0.19) + (0.0685 * 0.15) + [0.6575*0.09(1-0.34)]
WACC = 0.0521 + 0.0103 + 0.0391
WACC = 0.1015 or about 10.14%
Answer:
$6,775
Explanation:
The computation of the depreciation expense using the straight line method is shown below:
Straight-line method:
= (Original cost - residual value) ÷ (useful life)
= ($30,800 - $3,700) ÷ (4 years)
= ($27,100) ÷ (4 years)
= $6,775
In this method, the depreciation is same for all the remaining useful life
Therefore, in the first and second year the same depreciation expense is to be charged i.e $6,775
