Answer:
A. The WACC that should be used in capital budgeting is the firm's marginal, after-tax cost of capital
Explanation:
Answer:
csh used for operatng activities 1,600
Explanation:
the operatng activities will be the cash outflow for business day-to-day operation
the rent is an operational cost, as the rented space is used daily for the business.
the workers salaries are operating activities, they work and provide their work to make the business operate
The equipment is an investment activity. the equipment will generate cash over the course of his useful life, is an investing activity. It decreases cash now, to increases in the future.
The Loan is a financing activity, the company is paying a loan which in a previous period provide cash.
So, total operating activities:
rent 500
salaries 1,100
total 1,600
Answer:
Equity at August 1st 0
adds: Carmen Camry Investment 101,4000
Net Income 5,410
Subtotal 106,810
Withdrawals -5,950
Carmen Camry capital account at the end of August 31th 100,860
Explanation:
We have to calculae the net income
Fees earned 26,960
office 5,200
rent expense 9,500
salaries expense 5,560
telephone expense 820
miscellaneous expenses 470
Total Expenses 21,550
Net Income 5,410
Then we do the equity stamtent:
beginning + investment + net income - withdrawals = ending
Equity at August 1st 0
adds: Carmen Camry Investment 101,4000
Net Income 5,410
Subtotal 106,810
Withdrawals -5,950
Carmen Camry capital account at the end of August 31th 100,860
Answer:
A. slopes upward
Explanation:
(I will include a picture in the attachment to help with the explanation)
Slope upward represent the increase in quantity as the price goes up.
As the price of a product is increased, the potential profit that the producer can generate is also higher. Because of this, they become motivated to supply more product for the customers. They will increase their production output and increase the amount of distributions to the market.
This is why the slope will become upward like the picture above.
