Answer:
$193,000
Explanation:
Carter Company
Sales 4,525,000
Cost of goods sold <u>-2,550,000</u>
1,975,000
Operating expenses <u>-1,372,000</u>
Net Income 603,000
Average invested assets 4,100,000
Target income 10% 410,000 <u>410,000</u>
Residual income <u>$193,000</u>
Answer:
the amount of its liabilities is $285,000
Explanation:
From the Accounting Equation, we know that :
Assets - Liabilities = Equity
Therefore,
Liabilities = Assets - Equity
= $710,000 - $425,000
= $285,000
Many new business owners prefer a limited liability structure because there are less liable at a loss towards the business. Personal assets are not needed to be sacrificed
Answer:
The given statement is correct
Explanation:
A well-perceived strategy to measure the cost of the capital for a project is 'pure-play'. As indicated by pure-play procedure, a firm faces two kinds of risks, the most significant is financial leverage risk as beta increases due to an increase in financial leverage risk and the second type is an operational risk. If a firm is persuaded to apply the pure-play method for the calculation of the cost of capital, for that, they should utilize the unlevered beta for the organization that is working in the same industry. Therefore, according to this technique, the given explanation is right.
If Lisa makes $6,000 per month at her full time job and then working on her business in the evening, she should be making at least $6,000 frmo her business before quitting her full time job. If Lisa is use to making $6,000 and needs that to support herself and her bills, then she would want that same amount of money to be coming in from another source before she can quit her current job. If Lisa is making money from her business already and needs that in conjunction to the $6,000 she makes at her full time job than that money needs to be included in her income before she leaves her job.
