Answer:
Accounting rate of return is 10%
Explanation:
Given data
new machine = $48,000
sales = $16,000
time = 10 year
depreciation = $4,000 / year
factory overhead = $8,000 + depreciation $4,000
net income = $2400
tax rate = 40%
to find out
accounting rate of return for the machine
solution
we know that
Accounting rate of return = after tax net income / average investment
so here we know net income after tax = $2400
so we find investment first
Average investment = (Initial investment) / 2
Average investment = 48000 / 2 = $24000
so
Accounting rate of return = after tax net income / average investment
Accounting rate of return = 2400 / 24000 = 0.1 = 10%
Accounting rate of return is 10%
An equilibrium price is where the quantity of goods supplied is equal to the quantity of goods demanded. So if supplies of the said product goes down the equilibrium will go down and the price and demand will be higher.
Answer:
Correct option is (c)
Explanation:
An accountant will record only those cost in the financial statements that have incurred on account of carrying out the business.
In this case, option (a) and (b) are opportunity cost of carrying out shoe shine business. These are the income that John could have earned if he did not start shoe-shine business.
Cost of shoe polish is an operating expense incurred to run his shoe-shine business. So this cost will be included by the accountant in the financial statements.
Answer:
Im going with either 1million a day or 10k an hour
Answer:
$6,000
Explanation:
Data given in the question
Sale value of the furniture = $120,000
Interest rate = 10%
So by considering the above information, the interest recorded is
= Sale value of the furniture × interest rate × number of months ÷ total number of months in a year
= $120,000 × 10% × 6 months ÷ 12 months
= $6,000
The six months is calculated from June 30 to December 31 and we considered the same for the above calculation
