Methods of short-term financing include?

Gomez runs a small pottery firm. He hires one helper at $13,000 per year, pays annual rent of $5,500 for his shop, and spends $2

alisha [4.7K]

Answer:

(a) $35,000

(b) $8,000

Explanation:

(a) Accounting profit:

= Total revenue - Explicit cost

= $75,000 - (wages + Annual rent + Material cost)

= $75,000 - ($13,000 + $5,500 + $21,500)

= $75,000 - $40,000

= $35,000

(b) Economic Profit:

= Total revenue - Explicit costs - Implicit costs

= $75,000 - (wages + Annual rent + Material cost) - (Income from investment + Earnings as a potter + Worth of entrepreneurial talents)

= $75,000 - ($13,000 + $5,500 + $21,500) - ($5,500 + $19,000 + $2,500)

= $75,000 - $40,000 - $27,000

= $8,000

8 0

4 years ago

Intelligent Tool Corp. is planning to set up a production plant abroad. It has selected five potential countries based on their

Alex_Xolod [135]

Answer:

e. Country B, where education is well-developed and social stratification is lacking.

Explanation:

Country B will be the best option because the population is well-developed in terms of education, so there will be availability of skilled labour for the production plant.

Also lack of social stratification means there is no well-developed social stratification into upper, middle, and lower classes. Success will be due to individual achievement, so the people will be motivated to work hard and exploit the opportunity of growing in the new production plant.

5 0

3 years ago

Among the costs Kunee Company incurred during the month of August were the following: $15,000 - coolant used in the headquarters

uranmaximum [27]

Answer: Option (B) is correct.

Explanation:

Given that,

Coolant (used in the office air-conditioning system) cost = $15,000

Property taxes on factory building = $45,000

Depreciation on trucks = $10,000

Salary paid = $2,000

Period cost = Coolant cost + Depreciation on trucks

= $15,000 + $10,000

= $25,000

6 0

3 years ago

lucy invests $800 in an account that earns 6.12% annual interest compounded continuously. juan invests $1600 in an account that

Len [333]

Answer:

Both their investments will reach a similar value in 32 years, 9 months and 8 days. Both accounts will have exactly $5,606.

Explanation:

Original investment: $800 at 6.12% $1,600 at 3.9%

future value 10 years $1,449 $2,346

future value 20 years $2,624 $3,439

future value 30 years $4,753 $5,042

future value 31 years $5,044 $5,238

future value 32 years $5,353 $5,442

future value 33 years $5,681 $5,655

It will take over 32 years for both investments to match their amounts.

to determine the approximate month we start with the future value in 32 years:

$5,353 $5,442

future value in 6 months $5,517 $5,548

future value in 9 months $5,599 $5,601

future value in 9 months

and 5 days $5,603 $5,604

future value in 9 months

and 8 days $5,606 $5,606

7 0

3 years ago

. You have room for up to two fruit-bearing trees in your garden. The fruit trees that can grow in your garden are either apple,

Alina [70]

Answer:

you should have 2 apple trees

Explanation:

you can have savings costs net payoff

no tree at all 0 0 0

1 apple tree $130 $100 $30

1 orange tree $90 $70 $20

1 pear tree $145 $120 $25

2 apple trees $260 $200 $60

2 orange trees $180 $140 $40

2 pear trees $290 $240 $50

1 apple + 1 pear tree $275 $220 $55

1 apple + 1 orange tree $220 $170 $50

1 orange + 1 pear tree $235 $190 $45

8 0

3 years ago