Answer: d. The firm's cash position in 2015 and 2016 would increase.
Explanation:
The financila statements had been calculated with the view that fixed assets would be depreciated over a 20 year period. However, it was discovered that the assest should be depreciated over 15 years instead. This reduction in the period would have the effect for increasing the depreciation payment.
For example, say the asset cost $20,000 and was originally to be depreciated over 20 years using Straight Line Depreciation. This means that the depreciation per year would be,
= 
= $1,000 a year.
If it was however discovered that it was supposed to be 15 years that figure would go to,
= 
= $1,333.33 a year
Notice how depreciation increased. Lucy's Music emporium will therefore see their depreciation cost rise. Depreciation is subtracted from revenue as it is tax deductible. When Lucy's Emporium deduct this new depreciation, they will have less profit. They will be taxed on this less profit and so pay a lower tax. This will thus increase their cash holdings because Depreciation is a non cash expense and does not actually require a cash payment.
Answer:
Inventory at the end of march 2008 = 150 units
Explanation:
<em>The closing inventory at the end of a particular period will be opening inventory at the beginning of the following period.</em>
<em>Note that the inventory at the end of March 2008 will be the opening inventory at the beginning of April 2008.</em>
<em>The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories. </em>
Production = Sales volume + closing inventory - opening inventory
100 = 50 + 200 - X
X = 50 + 200 -100
X = 150 units
Inventory at the end of march 2008 = 150 units
C because I
Had this question
Answer:
The correct answer is option A.
Explanation:
A perfectly competitive market has large number of sellers producing homogenous products. As a result, no single firm is able to affect the price level. So all the firms have their individual demand curves as a horizontal line at the price level.
This demand curve also represents marginal revenue. The firm is able to maximize profit when the price and marginal revenue is equal to the marginal cost.
Here, the revenue earned from the last unit of product is equal to the cot incurred in producing the last unit.
Answer: No they did not at this rate many of the citizens will go bankrupt and the economy will suffer a great lost do to the increase of the unemployment rate
Explanation:
