Answer: $76,220
Explanation:
Total Assets = Current Assets + Fixed Assets
Current Assets = Cash + Accounts Receivable
= 13,320 + 19,980
= $33,300
Fixed Assets = Equipment = $42,920
Total Assets = 33,300 + 42,920
= $76,220
Economic profit is calculated as:
Economic profit = Total Revenues – Total Cost
Total cost both includes explicit and implicit cost. In
this case, the explicit cost is $8,000 while the implicit cost is $64,000.
Explicit cost is a direct payment made to run the business while implicit cost
is the opportunity as accountant that is lost. Therefore,
Economic profit = $150,000 – ($8,000 + $64,000)
<span>Economic profit = $78,000</span>
Unit pricing can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit of service.
Answer:
Annual depreciation = $44,400
Explanation:
Given,
Purchase price of the delivery van = $111,000
Salvage value = $11,400
Useful Life = 5 years
We know that
annual depreciation under double declining balance (%) = (100%/useful life)*2
Putting the value in the formula, Annual depreciation (%) = (100%/5)*2
= 40%
Annual depreciation = Purchase Price*Percentage of annual depreciation
Annual depreciation = $111,000*40% = $44,400
