Answer:
b) balance sheet
Explanation:
Balance sheet: The assets liabilities and stockholder equity are reported in the balance sheet. The accounting equation that is displayed below is used in this:
Total assets = Total liabilities + stockholder equity
The balance sheet debit and credit side should always be equal and balanced.
In addition, it is always prepared on the date specified plus it is also reflects the financial position, financial performance of the company.
Answer:
Payback period = 3 years
Explanation:
<em>The payback period is the average length of time it takes the cash inflow from a project to recoup the cash outflow.</em>
<em>Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as: </em>
<em>Payback period =The initial invest /Net cash inflow per year
</em>
The cash inflow = Net operating income + Depreciation
= 105, 000 + 45,000 = 150,000
Note we have to add back depreciation because it is not a cash-based expenses. And payback period makes use of only cash-based revenue and expenses.
Payback period = 450,000/150,000
= 3 years
Payback period = 3 years
Answer:
False Statement:
B. Only II is False.
Explanation:
If the cash flow from a project is farther out, the present value will be lower, all else being equal. This is because of the time value of money. This concept states that the money you receive today is higher in value than the same amount received in the future. And if the future is father out, then the value of the money will continue to reduce in relative value based on this time value of money concept.
Answer:
The inspecting costs should be allocated to the Basic model using ABC costing is $30,600
Explanation:
The computation of the inspecting cost is shown below:
= Total number of basic model inspection + the total number of inspection
where,
Total number of basic model inspection equals to
= Number of units produced ÷ every units produced
= 3,400 units ÷ 100
= $34
And, the total number of inspection equals to
= Total inspection cost ÷ number of inspection
= $84,600 ÷ $94
= 900
The number of inspection includes
= total number of basic model inspection + the total number of luxury model inspection
= $34 + $60 (600 units ÷ 10)
Now put these values to the above formula
So, the value would equal to
= 900 × $34
= $30,600
Answer:
The equilibrium price would increase, and the equilibrium quantity would decrease.
Explanation:
With an increase in the cost of steamed milk, the cost of materials, one of the key factors in pricing decision would rise, which means that the equilibrium price of lattes would also increase. With an increase in price, according to the law of demand, there is a decrease in demand. Therefore, the quantity of lattes sold at the new equilibrium price would decrease.
The equilibrium price would increase, and the equilibrium quantity would decrease.
