Answer:
The correct answer is B.
Explanation:
Giving the following information:
You believe this will increase your contribution margin from $127,000 to $218,000 per year. Rent, however, will increase by $400 per month, and utilities will increase by $150 per month. You will also need to hire two additional employees for $24,000 each annually.
We need to calculate the effect of moving in the net income of the company:
Effect on income= (218,000 - 127,000) - (400*12) - (150*12) - 24,000*2
Effect on income= $36,400 increase
Answer:
Equity method
Explanation:
For accounting the investment, first we have to determine the percentage which is shown below:
= Owned shares ÷ outstanding shares of common stock × 100
= 17,000 ÷ 70,000 × 100
= 24.28%
By finding out the percentage, the investment is accounting by the equity method as the common stock outstanding shares is mentioned in the question
Answer:
Book value
Explanation:
Book value refers to the worth of an asset in the financial records of its owner. It is the original cost of the asset minus its accumulated depreciation. The book value is the same as the carrying value in the balance sheet.
Assets decline in value due to the passage of time, usage, and corrosion. Though depreciation, the value of the asset is gradually reduced in its books. Usually, depreciation happens until the end of the asset's useful life.
If an asset is sold before the end of its useful life, a comparison will be made between the amount received and its book value. If the book value is higher than the amount received, a loss will be recorded.
Answer:
$759,000
Explanation:
Given that,
New stock issues = $1.9 million
Dividend paid in cash during the year = $281,000
The net cash flow provided by financing activities is:
= Million new stock issue increase in cash - Cash dividend decrease in cash + Increase in cash - Decrease in cash
= $1,900,000 - $281,000 + $1,590,000 - $2,450,000
= $759,000
Answer:
(a) N = 10.08
(b) N = 10.89
(c) 19.05
Explanation:
(a)
N = 10.08
(b)
N = 10.89
One thing to observe here is that percentage increase in the real wage is always equal to the percentage increase in nominal wage. Same can be verified with different values.
(c) It's given that the real wage is kept at $ 12 which was the same in the last year as well.
So % increase would be zero.
However, if that $ 12 is considered as a Nominal wage in the current year,then,
= 19.05
