The answer to this question is a business resolution. A
business resolution is also known as a corporate resolution which means the
business or company’s solution to a problem in the company. A business
resolution was being decided by board of directors of the company which they
have agreed and voted.
Answer: The gradient of income growth is $12,59,741.59. This means that income must rise by $12,59,741.59 each year.
We follow these steps to arrive at the answer:
<h3><u>1. Calculating the total value of earnings after 15 years</u></h3>
We calculate the Future Value of the investment as follows:
This represents the total of revenues earned over 15 years from the investment.
<h3><u>2.Calculating the gradient</u></h3>
Since income increases linearly over 15 years, we can consider year 3 earnings as the base. Let the income increase in year 4 by x. Since income increases yearly, we can calculate income in each year as follows
Year Revenues
1 0
2 0
3 250000
4 250000 + x
5 250000 + 2x
6 250000 + 3x
7 250000 +4x
8 250000 + 5x
9 250000 + 6x
10 250000 + 7x
11 250000 + 8x
12 250000 + 9x
13 250000 + 10x
14 250000 + 11x
15 <u> 250000 + 12x</u>
Total 32,50,000.00 + 78x
Now we equate the values in steps 1 and above to find 'x' the gradient
Answer:
Option (c) is correct.
Explanation:
Given that,
Cost of machine = $39,000
Depreciation years = 4
Salvage value = $3,000
Straight line rate:
= (100 ÷ 4)%
= 25%
Double declining rate:
= (2 × Straight line rate)
= (2 × 25)%
= 50%
Depreciation for year 2012:
= Cost of machine × Double declining rate × Time period
= $39,000 × 50% × 6/12
= $9,750
Depreciation for 2013:
= (cost of machine - Depreciation for year 2012) × Double declining rate
= (39,000 - $9,750) × 50%
= $14,625
Answer:
$40,000 increase in annual net operating income
Explanation:
If Talboe buys the the wheels then the annual net operating income of the company will be $40,000
Cost of purchasing wheels $0.80 per wheel * 200,000 wheels = $160,000
savings in fixed cost $25,000
Rental income from wheels $55,000
Net cost of buying the wheels $80,000
If company manufactures the wheels its total cost is $200,000
The net change in operating income is $200,000 - $160,000