D. the benefits that result from the activity exceed the costs
Answer:
"$52,000" is the correct answer.
Explanation:
Given:
This year income,
= $40,000
Next year income,
= $60,000
Market interest rate,
= 10%
or,
= 0.1
Now,
The next year consumption will be:
= ![[40,000 - 30,000 - 50,000]\times 1.1 + (60,000 + 36,000)](https://tex.z-dn.net/?f=%5B40%2C000%20-%2030%2C000%20-%2050%2C000%5D%5Ctimes%201.1%20%2B%20%2860%2C000%20%2B%2036%2C000%29)
= 
= 
= 
($)
Answer:
Deferred
Explanation:
Deferred revenue arises when a business receives cash in one period, but does not provide all of the related goods or services until a later period.
Deferred revenue are the payment received by the company or individual in advance for the product which is not been delivered yet or for the services which are not yet performed. It is not considered as revenue by companies, that´s why they report the deferred revenue as a liability in the balance sheet of the company.
Answer:
Ending Cash Balance:
January = $32,450
February = $23,600
Loan Balance End of Month
January = $0
February = $7,080
Explanation:
Note: See the attached excel file for the cash budget for January and February.
In the attached excel file, the following calculation is made:
Additional loan in February = Minimum monthly cash balance - Preliminary cash balance in February = $23,600 - $16,520 = $7,080
From the attached excel file, we have:
Ending Cash Balance:
January = $32,450
February = $23,600
Loan Balance End of Month
January = $0
February = $7,080
