Answer:
Net income for the year = $257,000
Explanation:
Retained earnings for the year= Net income - dividends paid.
Since no dividends were paid, retained earnings for the year = net income for the year. At the end of each accounting period, retained earnings are reported on the balance sheet, and the retained profits for the year are added to the beginning balance of retained earnings, to give a cumulative ending balance of $2,499,000.
therefore retained earnings for the year = ending retained earnings balance - beginning retained earnings balance = $2,499,000.-$2,242,000= $257,000.
Net income for the year is thus = $257,000 since no dividends were paid.
Answer:
$3,130,000
Explanation:
Net operating income = Total revenue - Total cost
Total revenue = price x quantity = $9,500 x 400 = $3,800,000
Total cost = $670,000
Net operating income = $3,800,000 - $670,000 = $3,130,000
I hope my answer helps you
Answer:
The price of the bond is $ 21,541.53
Explanation:
The price of the bond is the present value of all cash inflows expected from the bond throughout the bond's life.
The cash inflows comprise of coupon interest interest payments as well as the repayment of the principal amount(the face value of $20,000) at redemption.
The present value is computed by multiplying the cash inflows by the discount factor.
The formula for discounting factor =1/(1+r/2)^t
r is the required yield of 5.4% divided by 2 since the coupon is payable twice a year.
Find attached.
Answer:
best combination of resources to use to produce a product.
Explanation:
Capitalism also referred to as free-enterprise system or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, capitalism is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.
Simply stated, a pure capitalism is a type of economy that is completely driven by demand and supply of goods and services.
In a society, the role of an entrepreneur is mainly focused on bringing the four (4) factors of production together and take the risks of producing output, so as to generate revenue through sales and make economic profits in the long-run.
Hence, the profit and loss system of capitalism helps entrepreneurs determine best combination of resources to use to produce a product.
