Answer:
Consider the following calculations
Explanation:
Expected pay off of investing 1000 in Rothko,LLC= probability of getting oil stock *increase in value ofstock= .37* 63% of 1000
= .37*630= 233.1
Similarly
Expected pay off of investing 1000 in Calder & co = .63* 37% of 1000= .63* 370= 233.1
Of investing 500 in each
Expected pay off= .37 * 63% of 500 + .63* 37% of 500
= .37* 315 + .63* 185= 233.1
Answer:
1. Cash payments for merchandise is $446,030
2.Cash payment for operating expense is $77,870
Explanation:
1. In order to calculate the Cash payments for Merchandise we would have to use the following formula:
Cash payments for Merchandise= cost of goods sold +decrease in accounts payable-decrease in inventory
Cash payments for Merchandise=$448,500+$4,290-$6,760
Cash payment for Merchandise=$446,030
2. In order to calculate the Cash payments for operating expenses we would have to use the following formula:
Cash payment for operating expense=operating expense - decrease in prepaid expense +decrease in Accured
Cash payment for operating expense=$78,000 -$650+$520
Cash payment for operating expense=$77,870
Answer:
Hager should recognize a pre-tax gain on this exchange of $12,000
Explanation:
In order to calculate the pre-tax gain on this exchange that should be recognized, we would have to calculate first the total gain as follows:
Total Gain=$480,000-$384,000
Total Gain=$96,000
Because the exchange lacks commercial substance and some cash was received a portion of gain is recognized=$60,000/$480,000=0.125
Therefore, amount of pre-tax gain=$96,000*0.125=$12,000
Hager should recognize a pre-tax gain on this exchange of $12,000
Answer:
Overhead costs
Explanation:
When high overhead costs are recognised before project starts there will be a need to manage them. Since overhead cost increase as duration of project increases, reduction in project duration will go a long way in reducing cost incurred.
Overhead costs can include wages, rent, utility bills, maintenance costs and so on. They can also be reduced when costs that are not adding value is recognised.
