Options :
A. utilize their own aircraft.
B. have extensive ground networks.
C. have accurate, real-time tracking systems
D. all of the above
Answer:
D
Answer
Gomez's business accounting profit amounted to $37500 while economic profit is $6000
Accounting profit is simply deducting explicit costs from revenue.Explicit costs are costs that require actual cash flow from the entity.
Economic profit on the other hand is calculated by deducting both explicit and implicit costs from revenue.
Implicit costs are costs relating to alternative opportunities forgone.
Explanation:
Both accounting and economic profits are highlighted below:
Accounting profit=Total revenue-explicit costs
Revenue $82,000
Helper's wages ($15,000)
Rent ($6,500)
Materials ($23,000)
Accounting profit $37,500
Economic profit =Revenue -explicit costs-implicit costs
Revenue $82,000
Helper's wages ($15,000)
Rent ($6,500)
Materials ($23,000)
Return lost money invested ($6,000)
Lost income from porter's offer ($20,500)
Entrepreneur's talent ($5,000)
Economic profit = $6,000
Answer:
Explanation:
The formula to compute the free cash flow of the firm is shown below:
= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure
In this we deduct the changes in net capital and net capital expenditure and added the depreciation and amortization expenses to the Earning after tax so that the correct amount can be computed
Answer:
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
