Answer:
Net loss in 2018 reported in Puritan’s income statement = $360,000
Explanation:
Net Loss:
Net loss is the amount by which a company's total costs are more than its total sales during a particular period.
Formula:
Net loss = -taxable income + Income tax benefit
As taxable income for 2018 = $600,000 and Puritan's tax rate is 40% for all years
Therefore by putting the values in the above formula, we get
Net loss in 2018 in Puritan’s income statement = -$600,000 + ($600,000 * 40%)
Net loss in 2018 reported in Puritan’s income statement = -$600,000 + 1500000
Net loss in 2018 to be reported in Puritan’s income statement = $360,000
Answer:
NPV -87,259.64
Explanation:
P0 -100,000
Salvage Value 15,000
operating working capital realese 5,000
We will calculate the present value of the salvage value and the working capital realese
3,177.59
9,532.77
NPV = investment - cash flow discounted
NPV = -100,000 + 9,532.77 + 3,177.59 = -87,259.64
Answer:
a. trade-offs
c. marginal thinking
Explanation:
Marginal thinking is when a decision maker evaluates the marginal benefits and marginal cost of a certain activity. Daniel is trying to evaluate if the extra calories (marginal cost) he would get from eating the 5th size of pizza (marginal benefit) is worth it.
Trade offs is also known as opportunity cost. It is what is sacrificed in order to carry out a certain activity. If Daniel eats the pizza, he's sacrificing a more healthy body for the extra slice of pizza.
I hope my answer helps you
Answer:
Explanation:
Sales budget for may = 540
Sales budget for June = 670
Opening inventory for may = 190
Closing inventory for May = 155
Production in may =( 190+540)-155=575
Opening inventory in June = 155
Closing inventory = 165
Production in June = (155+670)-165=660
May material needs = 3(575+ (20%*660)
=3*707=2121 wheels
2121*24=$50,904
June material needs =3(660+(20%*640)
3*788=2364
2364*24=$56,736
