More competitive the industry.
Answer:
Annual depreciation= $10,000
Explanation:
Giving the following information:
The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000.
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (33,000 - 3,000)/3
Annual depreciation= $10,000
Answer:
a.
FALSE
<em>The argument above is in part inaccurate. In the long run, the monopoly dominant firms gain no economic profit at the profit generating production as their LRAC= LRAR at.
</em>
The firm is not effective economically (productively) though.
A monopolistically dominant firm is not successful effective because it does not achieve the average cost curve at the minimum level. The difference between supply and supply of the equilibrium at the minimum average cost is called overcapacity.
b.
FALSE
The monopolist has the power to make the price to maximize the profit. The monopolist, however, always has to respect demand rule of law. Its AR-curve is a sloping downward curve.
<em>It indicates that if the monopolist decides to increase production, he will have to lower the price. It shows that to increase income, the monopolist can set its price but can not set any price.</em>
c.
FALSE
The shut down point for reasonably competitive firms is Price= AVC.
When the price falls below the average cost of the product, otherwise the business must shut off.
<em>Otherwise, the business must continue to manufacture until the price falls below the average cost of the product. It will still deliver, even if the average income or price is below the average output.</em>
Answer:
Explanation:
As we know that time interest earned ratio = Income before interest and taxes / interest expense.
Sales = 546000
less: cost of goods sold = (<u>244410</u>)
Gross profit 301590
Less: <u>expenses</u>
Depreciation expense =( <u>61900 </u>)
Profit before interest and taxes 239690
Less: tax
(239690 * 23%) = (<u>55128</u>)
Profit 184562
Profit - Retained earning Addition = Interest
184562 - 74300 = 110262.
Interest earned ratio = 239690 / 110262 = 2.17 times
Answer and Explanation:
The categorization is as follows:
a. The bond issued at cash - Financing activity (cash inflow)
b. The equipment purchased for cash - Investing activity (cash outflow)
c. The land is sold for cash - Investing activity (cash inflow)
d. The dividend is paid for cash - financing activity (cash outflow)
