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PtichkaEL [24]
3 years ago
10

Fred quits his job with a big accounting firm, where he was earning $95,000 per year, to start his own accounting business in a

building he owns. He previously rented the building to someone who paid him rent of $22,000 per year, but now Fred collects no rent because he is using the building himself. Fred pays himself a salary of $32,000 per year and has other expenses of $25,000 per year. The yearly economic cost for Fred's accounting business is Enter your response as an integer)
Business
1 answer:
Ksenya-84 [330]3 years ago
4 0

Answer:

economic cost for Fred's accounting business is $142,000

Explanation:

given data

earning = $95,000 per year

rent = $22,000 per year

salary = $32,000 per year

other expenses = $25,000 per year

to find out

economic cost for Fred's accounting business

solution

we know that economic costs include both the explicit costs and implicit costs and here explicit costs is the expenditure on factor of production purchase from outside

so implicit costs is opportunity cost of owner provided resource and other expense is an explicit cost

so here Economic cost is here

Economic cost = Foregone salary + Foregone rent + Other expenses  ..............1

put here value

Economic cost = 95,000 + 22,000 + 25,000

Economic cost = = $142000

so

economic cost for Fred's accounting business is $142,000

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musickatia [10]

Answer: 0.35

Explanation:

The Price to Earnings ratio is used to value companies and is calculated by dividing the company's stock price by its earnings per share.

Earnings per share = 29,000,000/2,000,000 shares

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PE ratio = Share price / Earnings per share

= 5.09/14.50

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4 0
3 years ago
How is a contingent liability reported if it is considered ""reasonably possible?""
viva [34]

This is because a loss would be recorded (debit) and liability established (credit) in advance of the settlement.

Responsibility is the responsibility of the individual or company and is usually the amount. Debts are settled over time by the transfer of economic interests, including money, goods, or services. The liabilities shown on the right side of the balance sheet include loans, liabilities, mortgages, income receivable, borrowings, guarantees, and accrued expenses.

Liability can be compared to assets. Debt is what you owe or owe. An asset is something you own or owe.

Main findings

Responsibility (generally) is something that owes someone else.

Liability may also mean legal or regulatory risk or obligation. In

accounting, companies compare liabilities to assets.

Current liabilities are short-term financial liabilities of companies that are due within a year or within the normal business cycle (such as accounts payable).

Long-term (long-term) liabilities are liabilities that are recorded on the balance sheet and are due within one year.

Learn more about Liability here: brainly.com/question/24534918

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3 0
2 years ago
How can investors receive compounding returns? A: by selecting a savings account that has a higher interest rate B: by investing
ollegr [7]
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6 0
3 years ago
Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Tests revealed that the tire's mileage is no
kogti [31]

Answer:

The manufacturer should announce a guaranteed mileage of 44528 miles

Explanation:

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean \mu and standard deviation \sigma, the zscore of a measure X is given by:

Z = \frac{X - \mu}{\sigma}

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

In this problem, we have that:

\mu = 47900, \sigma = 2050

What guaranteed mileage should the manufacturer announce

Only until the 5th percentile will have to be replaced, which is the value of X when Z has a pvalue of 0.05. So it is X when Z = -1.645.

Z = \frac{X - \mu}{\sigma}

-1.645 = \frac{X - 47900}{2050}

X - 47900 = -1.645*2050

X = 44528

The manufacturer should announce a guaranteed mileage of 44528 miles

6 0
3 years ago
Read 2 more answers
The price of crude oil increases 50%. This will cause a change in ( supply/ quality supplied )
Paladinen [302]

Answer:

See below

Explanation:

A price increase motivates suppliers to avail more products for sale in the markets. High prices tend to have a high margin hence more profits. Like other businesses, oil producers are profit-motivated; they will supply more quantities if there is a high probability of making more profits.

The law of supply explains the correlation between supply and price. As prices increase, supply also tends to increase.

5 0
2 years ago
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