Answer:
Yes, Michael will afford the boat
Explanation:
So far Michael has saved $11,000.
The boats costs $30,000 to purchase.
Michael needs to raise $19,000 ($30,000 - $11,000) in two years to buy the boat.
Michael saves $900 per month. In 24 months he will have saved
=$900 x 24
=$21,600
Michael requires $19,000 but will have save $21,600 in two years. Therefore, he should be able to purchase the boat.
<span>This is a de-marketing strategy through ads, which are assumed to be digital ads. The assumption is that the digital ad would reach the target audience of teenagers to discourage smoking. This type of marketing campaign shows the tobacco company in a 'responsible' light to the consumer. By discouraging underage use, the consumer can assume that this must be a good company and is honest in their marketing.</span>
Answer:
Advertising Expense , Cost of Merchandise Sold , Merchandise Inventory, Sales,Supplies Expense are closed to income summary account. Revenues and expenses are closed to Income Summary.
Explanation:
Closing Entries
a. Accounts Payable: No it is not closed to income summary account.
b. Advertising Expense: Yes it is closed to income summary account.
c. Cost of Merchandise Sold: Yes it is closed to income summary account.
d. Dividends : No these are closed To Retained Earnings Accounts.
e. Merchandise Inventory : Yes it is closed to income summary account
f. Sales Yes it is closed to income summary account
g. Supplies: No prepaid supplies are an asset account and it is included balance sheet.
h. Supplies Expense: Yes it is closed to income summary account
i. Wages Payable: Not closed in the income summary account.
These are liabilities and included in the balance sheet.
Answer:
A) $56.5
Explanation:
Data:
Project S
Initial cost $10,000
Y1 CF = $6,000
y2 CF = $8,000
Project L
Initial Investment = $10,000
Y1-Y4 CF = $4,373
Solution:
<u>For Project S</u>
We shall prolong the project to four years so it can be easily compared to project L
Following shall be the cashflow stream:
Y0=-$10,000 Y1=$6,000 Y2=-$2,000($8,000 CF - $10,000 outlay for prolonging the project second time) Y3=$6,000 Y4=$8,000
Now to discount the cashflow
<u>For Project L</u>
In order to calculate present value of the annuity, following formula will be used:
<em>NPV = Initial outlay - PV</em>
Now, we can easily calculate how much value will the firm gain or lose if Project L is selected over Project S
<em>*all figures are rounded off to two decimal points*</em>
Answer:
c. Bill is the superintendent of schools, and John is the chair of the school board
Explanation:
Bill is the superintendent of schools, and John is the chair of the school board
