Answer:
Accounting profit - Your actual profit
Economic profit - Profit, but opportunity cost factored out
Explanation:
Accounting profit is how much you made (Revenue - Explicit Cost.
Economic profit includes implicit costs, or opportunity cost. If you could have made $100,000 at a different job, you subtract that. If Accounting-Economic profit is 0 or higher, you should stay in business.
Answer:
Cash flows from operating activities:
Net income $52,000
Adjustments to net income:
- Depreciation expense $30,000
- Accounts receivable increased by ($25,000)
- Inventories increased by ($5,000)
- Accounts payable decreased by ($18,000) <u>($18,000)</u>
Net cash flow provided by operating activities $34,000
Answer:
$19.9
Explanation:
According to the given situation the computation of pre-tax net profit is shown below:-
Net pre-tax profit = Option exercised per share + Actual stock price at the end + Profit - Option premium
= $85 + $60 + $25 - $5.10
= $19.9
Therefore for computing the pre-tax net profit we simply applied the above formulas.
Answer:
$750 favorable ; $200 unfavorable
Explanation:
The computations are shown below:
For fixed overhead budget variance:
= Budgeted fixed overhead - actual fixed overhead
= $47,420 - $46,670
= $750 favorable
For fixed overhead volume variance:
= Budgeted fixed overhead - standard fixed overhead cost allocated to production
= $47,420 - $47,220
= $200 unfavorable
Hence we consider all the given information
Answer:
The price of the bond is closest $101.36
Explanation:
It is noteworthy that a rational investor pays for a bond today the cash flows derivable from the bonds in future discounted to today's terms.
The future cash flows comprise of the yearly coupon interest of $5.5(5.5% *$100) for 3 years as well as the repayment of the principal $100 at the end of year 3.
To bring the cash inflows today's term, we multiply them them by the discounting factor 1/(1+r)^N , where is the yield to maturity of 5% and N is the relevant the cash flow is received.
The discounting is done in attached spreadsheet leading $ 101.36 present value today.
