Answer:
the gross profit of XYZ is $294,000
Explanation:
The computation of the gross profit is shown below:
= Revenue - cost of goods sold
= $485,000 - ($38,000 + $186,000 - $33,000)
= $485,000 - $191,000
= $294,000
Hence, the gross profit of XYZ is $294,000
The above formula should be used for the same
Answer:
$12 million
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
contribution to GDP = value of final good - value of intermediate good
14 = 2 = 12
Answer:
Parke Company
The amount of interest expense should be included in Parke's 20X4 income statement is:
= $30,600.
Explanation:
a) Data and Calculations:
3-year Non-interest bearing note payable = $360,000
Imputed interest rate for this type of loan = 12%
Present value of the loan = $255,000
Interest expense as of December 31, 20X4 = $30,600 ($255,000 * 12%)
b) The interest expense is based on the present value of the loan and not on the future value of the note payable. Therefore, the interest expense for each of the three years will not be the same amount but will continue to increase as the present value changes from one year to the next.
Answer:
The correct answer is option A.
Explanation:
The demand for labor is said to be a derived demand as it is derived from the demand for products being produced using labor. It depends on the marginal productivity of labor and marginal revenue product of labor.
In other words, we can say that the demand for labor depends on the increase in the output produced due to hiring an additional unit of labor and the revenue earned from the sale of that additional output.
The demand curve of a firm is also called its marginal revenue product of labor curve. The marginal revenue product of labor is equal to the marginal product of labor times output price.
Answer:
a. $29,000
b. $214,000
c. Yes
Explanation:
a. Annual Depreciation expense:
= (Cost - salvage value)/ Useful life
= (330,000 - 40,000) / 10,000
= $29,000
b. Net book value at end of 4th year:
= Cost - 4 year depreciation
= 330,000 - (4 * 29,000)
= $214,000
c. One test to see if equipment is not impaired is that the Expected Undiscounted cashflows need to be higher than the net book value. This is not the case here as the Net Book value of $214,000 is higher than the expected Undiscounted cash inflows of $185,000. Equipment is therefore impaired.
