Answer:
9.5%
Explanation:
The computation of the after tax rate of return is shown below:
But before that first determine the following calculations
The interest income earned
= $800,000 × 12.50%
= $100,000
Now After tax interest income is
= $100,000 × (1 - 0.24)
= $76,000
Now
After tax rate of return on investment is
= ($76,000 ÷ $800,000) × 100
= 9.5%
The correct answer is no.
Natural Resources are things that occur in nature that can be used for economic gain. Since flour is a processed product and does not occur in nature it is not a natural resource.
When new firms have an incentive to enter a competitive market, their entry will BRING DOWN PROFITS OF EXISTING FIRMS IN THE MARKET.
This is because, those customers who are patronizing the existing firms before will start patronizing the new firms.
Answer:
Effect on net income=$328.22
Explanation:
DSO Formula is:
DSO=(Account Receivable/Credit sales)x365
Current DSO is:
DSO=(11500/100000)x365
DSO=41.975 days
In order to calculate the amount lowered we replace Account Receivable in DSO formula by X. DSO is 27 days
27=(X/100000)x365
X=$7397.26
Now:
Decrease in Account Receivable =$11500 - $7397.26=$4102.74
Effect on net income=$4102.74 * 8%
Effect on net income=$328.22
The correct answer is extra commissions.
Travel agencies will often recommend a preferred supplier because they are receiving extra commissions from the suppliers. The extra commissions do not necessarily need to be in cash. Often the extra commissions will be in the form of things like trips, free hotel rooms and cruises for the travel agents.
