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3 years ago

Lion Management Services is considering an investment of $75,000. Data related to the investment are as follows:

Business

1 answer:

irinina [24]3 years ago

8 0

Answer:

It will take 3.3 years to cover the initial investment.

Explanation:

Giving the following information:

Initial investment=$75,000

Year Cash Inflows

1 $20,000

2 23,000

3 17,000

4 50,000

5 20,000

<u>The payback period is the time required to cover the initial investment.</u>

Year 1= 20,000 - 75,000= -55,000

Year 2= 23,000 - 55,000= -32,000

Year 3= 17,000 - 32,000= -15,000

Year 4= 50,000 - 15,000= 35,000

To be more accurate:

(15,000/50,000)= 0.3

It will take 3.3 years to cover the initial investment.

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What will happen in the gasoline market now if buyers expect higher gasoline prices in the near future?

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D.) i had it right on my test

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3 years ago

Bristol Company's contribution margin income statement is presented below. Sales for the current period consisted of 7,500 units

avanturin [10]

Answer and Explanation:

The computation is shown below:

The Selling price per unit = $225,000 ÷ 7500 = $30

ANd,

Variable cost per unit = $135,000 ÷ 7500 = $18

a) Breakeven point = Fixed cost ÷ Contribution margin per unit

= $48,000 ÷ ($30 - $18)

= 4000 units

b) Breakeven dollars = Breakeven point × selling price per unit

= 4000 × 30

= $120,000

C) Margin of Safety in dollars = Sales Revenue - Breakeven dollars

= $225,000 - $120,000

= $105,000

d) Margin of Safety in percent

= $105,000 ÷ $225,000

= 46.67%

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3 years ago

Which term describes the reduction in an asset’s value over its lifespan?

Verizon [17]

Answer:

Depreciation / Amortization

Explanation:

Depreciation is an accounting concept that describes the process of allocating the cost of an asset over its meaningful life. Assets require a substantial amount of capital investments. Expensing the entire cost of an asset in one financial year is against the income and expense matching principle.

The business spreads the cost of the asset in each year that the asset is expected to generate revenue. The cost of the asset is divided equally with the number of its useful years. At the end of each year, the depreciation amount is charged to the profit and loss statement of the business.

Depreciation is the term used for tangible assets, while amortization is used for intangible assets. The two operate on the same concept.

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3 years ago

A(n) _______________ uses available technology to work from home or an off-site location.

adell [148]

The answer is telecommuting.

It can also be called as e-commuting. It is a kind of work arrangement where employee works from home or outside the brick-mortar office. (think coffee shops, libraries).

Instead of physically "commuting" to the office, the worker makes use of telecommunication links like the internet, to communicate thru email or phone all his work concerns. Other types of technology used can include video conferencing for meetings, and project management via app or remote software.

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4 years ago

Read 2 more answers

Brooks Co. purchases debt investments as trading securities at a cost of $66,000 on December 27. This is its first and only purc

Thepotemich [5.8K]

Answer:

Dr. Cr.

December 31

*Securities FV adjustment $6,000

Unrealized Gain $6,000

January 3

Cash $4,000

Securities FV adjustment $1,000

Trading Securities $3,000

* Securities FV adjustment is a sub asset account of trading securities.

Explanation:

Trading security are reported on its fair market value at each period end. The gain or loss should be recorded.

Dec 27, Purchase price = $66,000

Dec 31, Fair value = $72,000

Unrealized gain = $72,000 - $66,000 = $6,000

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4 years ago