Answer: Option B
Explanation: In simple words, closing entries refers to the journal entries which are made at the end of an accounting period for transferring the temporary account balances into permanent accounts.
These entries are made to close the four accounts for clear depiction of capital at the end of they year, these accounts are income, expenses, income summary and dividend account.
The objective behind making such entries is to clear the temporary accounts balance to zero for the next accounting period.
Answer: He should decline production of the machine.
Explanation:
Analyzing the problem, we can determine if he should proceed or not by calculating the Net present value. That is present value of the machine in terms of perpetuity as it will be used forever and the cost incurred in its production.
Given the following ;
To manufacture $200 = 1 year, meaning
Amount or yearly payment = $200
Cost of machine = $2,000
Interest rate(r) = 11.5% = 0.115
Recall;
Present the value if perpetuity ;
(Payment per period ÷ rate)
= $200 ÷ 0.115 = $1739.13
Net present value = $1,739.13 - $2000 = - 260.87
Given the negative value of NPV, the cost outweighs the benefit, hence, he should decline.
Answer:
c) $75.
Explanation:
<u>The disposable income is the amount of personal income after taxes</u>
we can solve for taxs using the savings identity:
<em>Savings = Private Savings + Public Savings</em>
where:
Private savings: personal income - personal consumption
and Public Savings = taxes - government spending
We plug the value in the formula and solve for T
5 = 85 - 70 + T - 20
5 = T - 5
T = 10
Now, we derive personal income:
85 income - 10 taxes = 75 disposable income
Can charge a premium price for its items or goods and also for administrations charges usually termed as services .
Since clients need to see items as being justified regardless of the higher sticker price, a business must endeavor to make an esteem observation. Alongside making an excellent item, proprietors ought to guarantee their showcasing endeavors, the item's bundling and the store's stylistic theme all join to help the superior cost.
The measure of a product, service, or company's profitability is its profit margin. The bigger the percentage representing the profit margin, the more profitable the company is.
Profitability is gauged by profit margin. Finding the profit as a proportion of revenue is used to calculate it.
Profit margin=44.9%
Explanation to the answer:
Profit margin =Net income / sales
=7,050,000 / $ 15,700,000
=0.44904
=44.9%
Profit margin =44.9%
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