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maria [59]
3 years ago
5

A consultant predicts that there is a 25 percent chance of earning $500,000 and a 75 percent chance of earning $100,000. The exp

ected profit is $200,000. The standard deviation is Group of answer choices $120,000. $160,000. $165,699. $173,205.
Business
1 answer:
antiseptic1488 [7]3 years ago
6 0

Answer:

$173,205

Explanation:

According to the scenario, computation of the given data are as follows:

Given data:

Earning (X1) = $500,000

Chances of X1 (Y1) = 25%

Earning (X2) = $100,000

Chances of X2 (Y2) = 75%

Expected Profit (Z) = $200,000

Formula for solving the problem are as follows:

Standard deviation = [ (X1 - Z)^2 × Y1 + (X2 - Z)^2 × Y2 ]^1/2

By putting the value in the formula, we get

Standard deviation = [ ($500,000 - $200000)^2 × 0.25 + ($100,000 - $200,000)^2 × 0.75 ]^1/2

= [ $22,500,000,000 + $7,500,000,000 ]^1/2

= ($30,000,000,000)^1/2

= $173,205.08 or $173,205

Hence, $173,205 is the correct answer.

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ivanzaharov [21]

Answer:

Determine the amount that will be reported as retained earnings on the post-closing trial balance.

Retainend earnings final___________30000

Explanation:

Cash__________________800  

Account Receivable______ 200  

Inventory_______________2500  

Building________________30000  

Accunulated depreciation_______________ 3000

Notes payable_________________________ 500

Common stock_________________________21000

Retainend Earnings_____________________ 5000

Dividens________________1000  

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Insurance expense_______ 1000  

                                       36500            36500

 

 

Retainend earnings______ 1000 26000

Retainend earnings initial_________ 25000

 

Net income_____________2000____7000

                                                 5000

 

Retainend earnings final___________30000

8 0
3 years ago
On January 1, 2020, Harter Company had Accounts Receivable $139,000,
LuckyWell [14K]

<u>Solution and Explanation:</u>

<u>Date Particulars Post ref.         Debit ($)    Credit ($) </u>

5- Jan Accounts Receivable  20000  

Sales revenue                                                     20000

(To record the sales revenue)    

5- Jan Notes Receivable         30000  

Accounts receivable                                              30000

(To record the sales revenue)  

18- Feb Notes receivable          8000  

Sales revenue                                                         8000

(To record the notes receivable and sales revenue)  

20- April Cash                        20400  

Notes receivable                                 20000

Interest revenue                                   400

(To record the collection of notes)    

30 april Cash                           25000  

Notes receivable                                 25000

(to record the collection of payment due)    

25 May Notes receivable         6000  

Accounts receivable                            6000

( To record the note settlement of past due balance)    

18- Aug Cash account               8360  

Notes receivable                                      8000

Interest revenue                                         360

(To record the collection of notes payment)    

25- Aug Accounts receivable  6135  

Notes receivable                                      6000

Interest revenue                                         135

1-Sep Notes receivable            12000  

Sales revenue                                        12000

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6 0
3 years ago
An entity has decided to focus strictly on producing and selling one type of teddy bear. For the upcoming year, the entity hopes
Yuki888 [10]

Answer:

29,143

Explanation:

Profit target = 25% on sales

Fixed cost = $51,000

Variable cost = $9.50 per unit

Sales price per unit = $15

To achieve profit target, let the number of units sold be y

Total sales = 15y

Total variable cost = 9.5y

Profit = 0.25 × 15y

         = 3.75y

Sales - Cost = profit

15y - (51000 + 9.5y) = 3.75y

15y - 9.5y - 3.75y = 51000

1.75y = 51000

y = 51000/1.75

y = 29143

29,143 bears must be sold to meet the profit goal.

8 0
3 years ago
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andre [41]

Answer:

Costs are subtracted from revenues.

Explanation:

As we know  

Profit is calculated when the cost is subtracted from revenues.  

In mathematically,  

The profit = Revenues - cost  

The profit which would be calculated above is shown in the debit side of the income statement.  

As the income statement records all the expenses or cost incurred and all the revenues which are generated

6 0
3 years ago
A capital budgeting project is expected to have the following cash flows: Year Cash Flows 0 -$850,000 1 $300,000 2 $400,000 3 $5
diamong [38]

The capital budgeting project's net present value at an 18% required rate of return is <u>($4,200).</u>

<h3>What is the net present value?</h3>

The net present value represents the net discounted value of cash inflows after subtracting the present value of cash outflows.

The net present value can be determined by determining the present values of cash inflows and outflows and netting the two values.

<h3>Data and Calculations:</h3>

Required rate of return = 18%

Project period = 3 years

Year    Cash Flows    PV Factor        Present Value

0         -$850,000            1                    -$850,000 ($850,000 x 1)

1           $300,000         0.847               $254,100 ($300,000 x 0.847)

2         $400,000          0.718               $287,200 ($400,000 x 0.718)

3         $500,000        0.609               $304,500 ($500,000 x 0.609)

Net present value                                ($4,200)

Thus, the capital budgeting project's net present value at an 18% required rate of return is <u>($4,200)</u>.

Learn more about the net present value at brainly.com/question/13228231

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8 0
2 years ago
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