Answer:
One of the major disadvantages of a sole proprietorship is Unlimited Liability The Owner Has For The Debts Of The Firm.
Answer:
4 years
Explanation:
The computation of the payback period is shown below:
Payback period is
= Cost of a Machine ÷ Annual cash flow
where,
Cost of a machine = $24,000
And, the annual cash flow is
= Net Income + Depreciation expense
= $2,000 + $4,000
= $6,000
Now placing these values to the above formula
So, the payback period is
= $24,000 ÷ $6,000
= 4 years
Answer:
The correct answer here would be option C) 16.5%.
Explanation:
For taking out the common size amount for gross accounts , formula is -
Gross account receivables / Total assets
Gross account receivables = net account receivables - allowance for doubt
full debts
= $486.6 + $7.2
= $493.8
Given -
Gross account receivables = $493.8
Total assets = $2984.1
Putting these values in the formula -
$493.8 / $2984.1
= 16.5%
