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3 years ago

A corporation had the following assets and liabilities at the beginning and end of this year.

Business

1 answer:

ludmilkaskok [199]3 years ago

5 0

Answer:

Net Income / Net Loss:

Scenario A $35,888 (-58,000 + 22,112)

Scenario B $37,088 (-58,000 + 22,112 + 1,500)

Scenario C -$9,112 (-58,000 + 45,000 + 22,112)

Scenario D $17,112 (-58,000 + 35,000 + 22,112 + 18,000)

Explanation:

a) Data and Calculations:

Beginning Ending

Assets $57,000 $24,463

Liabilities 115,000 46,575

Equity (58,000) ($22,112)

Net Income / Net Loss:

Scenario A $35,888 (-58,000 + 22,112)

Scenario B $37,088 (-58,000 + 22,112 + 1,500)

Scenario C -$9,112 (-58,000 + 45,000 + 22,112)

Scenario D $17,112 (-58,000 + 35,000 + 22,112 + 18,000)

b) The net income is the difference between the beginning equity plus new investments and the ending equity and dividends.

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The last one so work samples etc are the best examples

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3 years ago

Blue Spruce Corp. started the year with total assets of $304000 and total liabilities of $244000. During the year the business r

erma4kov [3.2K]

Answer:

$305,000

Explanation:

Net income is the amount of money available to a company after the deduction of expenses from revenue. It is calculated as;

Net income = Revenues - Expenses

Given that;

Revenues = $630,000

Expenses = $325,000

Net income = $630,000 - $325,000

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Therefore the net income reported by Blue Spruce Corp. For the year is $305,000

3 0

3 years ago

You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use

Marysya12 [62]

Answer:

1. In option (a), the dealer would charge $18,213.54.

b. In present value terms, the one-time payment (option (b) is a better deal for the purchaser.

Explanation:

a) Data and Calculations:

Monthly payment for a used car = $620

Payment period = 20 months

Additional payment at the end of 20 months = $12,000

Annual interest rate = 24%

One-time payment for the car purchase = $16,864

From an online financial calculator, the present value of the payments is:

N (# of periods) 20

I/Y (Interest per year) 24

PMT (Periodic Payment) 620

FV (Future Value) 12000

Results

PV = $18,213.54

Sum of all periodic payments = $12,400.00

Total Interest = $6,186.46

3 0

3 years ago

In a competitive market, if production (and consumption) continues until the marginal benefit of one more unit equals marginal c

Pachacha [2.7K]

Answer:

False

Explanation:

In a competitive market, if production (and consumption) continues until the marginal benefit of one more unit equals marginal cost, then total surplus is maximized.

As for any extra unit produced

Marginal Benefit > Marginal cost = Surplus

Marginal Benefit = Marginal cost = No Surplus / No loss

Marginal Benefit > Marginal cost = loss

When your Marginal benefit is maximum and Marginal cost is minimum then the surplus will be maximized.

Most efficient situation in which benefit is maximum and the cost is minimum results in maximized surplus.

8 0

3 years ago

Carla Vista Energy Company owns several gas stations. Management is looking to open a new station in the western suburbs of Balt

tatuchka [14]

Answer:

The present Value of the growing annuity= $1,158,092.68

Explanation:

The present value of the growing annuity is going to be computed as follows:

PV = A/(r-g) × (1- (1+g/1+r)^n)

A- annual cash flow- $87,460

g- growth rate - 6.3%

n- number of years =73

r- discount rate - 13.8%

I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity as follows.

A/(r-g) = 87,460/(0.138-0.063) =1,166,133.33

(1- (1+g/1+r)^n) = 1- (1.063/1.138)^73 =0.9931

PV = A/(r-g) × (1- (1+g/1+r)^n)

166,133.33× 0.9931 = 1,158,092.68

The present Value of the growing annuity= $1,158,092.68

6 0

3 years ago