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Darina [25.2K]
3 years ago
15

Ben started a business on 1 January 2015 using rented premises. At 31 December 2015 Ben owed $1400 for rent. The rent charge to

the Income Statement for the year ended 31 December 2015 was $6000. How much was paid for rent during the year?
Business
1 answer:
Alina [70]3 years ago
7 0

Answer:

4600

Explanation:

Rent expense is 6000 but he still owed 1400 of that. So he paid 4600 (6000-1400)

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A municipality taxing hotel guests to obtain funding for a new sports stadium should consider all of the​ following, except
DochEvi [55]

Answer:

B. the winning potential of the sports team using the stadium

Explanation:

4 0
3 years ago
The formula for finding the net present value of a cash outflow now, a positive cash flow in 1 year, a positive cash flow in 2 y
melamori03 [73]

The formula for finding the net present value is -C0 + [C1 / (1 + r)] + [C1 / (1 + r)²] + [C1 / (1 + r)³].

<h3>What is the net present value?</h3>

The net present value is a capital budgeting method. Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Only projects with a positive net present value should be accepted. A project with a negative net present value should not be chosen because it isn't profitable. When choosing between positive  net present value projects, choose the project with the highest  net present value first because it is the most profitable.

An advantage of the net present value method of capital budgeting is that it considers the times value of money. A disadvantage of net present value is that it is difficult to estimate the accurate discount rate.

To learn more about net present value, please check: brainly.com/question/25748668

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7 0
2 years ago
Why are economic systems needed? Respond to the question below with a minimum of 5 sentences.
harina [27]

Answer:

Explanation:Since economic resources are scarce, they must be used efficiently. We want to produce as much goods and services as we can, and in the process, produce the goods and services needed the most.  There are five functions an economic system performs in producing goods and services for consumption.

6 0
3 years ago
CAPM and Valuation. You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year for
UkoKoshka [18]

Answer:

The value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places

Explanation:

We first need to calculate the required rate of return for this firm that will be used as the discount rate in the valuation of the firm using the discounted cash flow methods.

Using the CAPM we can calculate the required rate of return as,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on Market

So,

r = 0.04 + 0.4 * (0.11 - 0.04)

r = 0.068 or 6.8%

As the cash flows the firm can generate are expected to remain constant through out and they are generated after equal interval of time, this can be treated as a perpetuity.

The present value of a perpetuity is calculated as follows,

Present Value of perpetuity = Cash Flow / r

Present value of perpetuity = 10000 / 0.068

Present value of perpetuity = $147058.8235

So, the value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places

3 0
4 years ago
Taha Company purchased $8,000 of inventory under terms FOB destination. Freight cost amounted to $200. The cost of inventory and
Elza [17]

Answer:

Explanation:

The company must record the acquisition of that inventory, including all the expenses related to the purchase and logistics, up to have them placed in the company´s warehouse.

Therefore, the journal entry to record those transactions are:

Dr  Inventory       8,200

Cr  Cash                              8,200

Notice that freight costs are not considered expenses in this case, as they are capitalized being part of the inventory cost.

<u>Income Statement</u>:  no change

<u>Balance Sheet</u>:   Inventory increased by $ 8,200

                            Cash decreased by $ 8,200

                            <u>Net change</u>:  $ 0

3 0
3 years ago
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