Answer: 10% or $2,000,000
Explanation:
Seeing as no figures were produced, we will have to do this ourselves.
We will make assumptions which include the following,
Life of the equipment = 10 Years
Salvage value = 0
Those are our 2 assumptions.
In that case then,
The Annual Depreciation will be,
Depreciation = (Cost of equipment - Estimated salvage value) / Estimated useful life
= (20 - 0) / 10
= $2 million
Seeing as 2 million is,
= 2/20 * 100
= 10%
That would mean that annual depreciation costs at that facility will rise by $2 million or 10%.
If you need any clarification do react or comment.
Answer:
c. Domestic production of coffee falls, and Ectenia becomes a coffee importer.
Explanation:
As with a change in economic situations related to an individual product, it impacts the nation trading worldwide of that product.
In the given instance the domestic price of coffee falls, and then with this it is obvious that demand tends to increase, also because of decrease in price the contribution of companies domestically tends to decrease, therefore, the companies might not further produce coffee.
And with the resulting demand the country would have to import coffee beans.
Therefore, the correct answer is:
c. Domestic production of coffee falls, and Ectenia becomes a coffee importer.
Answer:
B. Mass marketing
Explanation:
Mass marketing is a strategy in which a company decides not use segments and target the whole market with the same strategy trying to reach as much people as possible. In this case, this is the approach Gary is using as he is designing a campaign using an approach that one product or service will work for everyone.
Answer: The answer is $129,000.
Explanation: The $129,000 amount above was derived by adding the movement in account receivable to the income reported on the income statement for the year. Since there are no effects of other adjustments, cash flows from operating activities would be, income $120,000 plus movement in account receivable ($31,000 - 40,000) = $9,000, giving rise to $129,000. Since account receivable decreased, it means there was an inflow of cash.
Answer:
The principal repaid in the second year will be $33,296.
Explanation:
Out of each 37,341.79 payment a part of it will be principal repayment and a part of it will be interest payment. When the first 100,000 is paid (0.059*100,000)=5,900 is interest and (37,341-5,900)= 31,441 is principal repayment which means, that in the second year the principal remaining is (100,000-31,441)=68,559. So the interest payment in the second year will be (0.059*68,559)=4,045 and the principal repaid will be (37,341-4,045)=33,296.