Answer:
Net income for the year = $257,000
Explanation:
Retained earnings for the year= Net income - dividends paid.
Since no dividends were paid, retained earnings for the year = net income for the year. At the end of each accounting period, retained earnings are reported on the balance sheet, and the retained profits for the year are added to the beginning balance of retained earnings, to give a cumulative ending balance of $2,499,000.
therefore retained earnings for the year = ending retained earnings balance - beginning retained earnings balance = $2,499,000.-$2,242,000= $257,000.
Net income for the year is thus = $257,000 since no dividends were paid.
<span>Personal consumption expenditures.Investment.Net exports.Government expenditure.</span>
Answer:
Present value= $3,642,651.54
Explanation:
Giving the following information:
You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments will increase by 4 percent per year. The appropriate discount rate is 10 percent.
First, we need to calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment= 530,000
i= 0.04 + 0.10= 0.14
n= 25
FV= {530,000*[(1.14^25)-1]}/0.14
FV= 96,391,538.43
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 96,391,538.43/ (1.14^25)
PV= $3,642,651.54
A. captive-product pricing
Gillette charges a fairly low price for their razors (relative to costs) and a high price for razor blades. they are using a strategy of __________ pricing.
Answer:
$122,600
Explanation:
Maintenance department cost = $27,000
Assembly department cost = $106,400
Square feet occupied by Milling department = 12,000
Square feet occupied by Assembly department = 18,000
Total square feet occupied by two production departments = Square feet occupied by Milling department + Square feet occupied by Assembly department
= 12,000 + 18,000
= 30,000
Maintenance department cost allocated to Assembly department = Maintenance department cost * (Square feet occupied by Assembly department / Total square feet occupied by two production departments)
= 27,000 * (18,000/30,000)
= 27,000 * 0.6
= 16,200
The total cost of operating the Assembly department for the current period = Assembly department cost + Maintenance department cost allocated to Assembly department
= $106,400 + $16,200
= $122,600