answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mamont248 [21]
2 years ago
13

Sally quit her job as an auto mechanic earning $50,000 per year to start her own business. To save money she operates her busine

ss out of a small building she owns which, until she started her own business, she had rented out for $10,000 per year. She also invested her $20,000 savings (which earned a market interest rate of 5% per year) in her business. You are given the following information about the first year of her operations.
a. Calculate her economic costs.
b. Calculate her accounting costs.
c. Calculate her implicit costs.
d. Sally tells you that she would really like to move to a location closer to town but she decided against it because "right now I don't pay any rent and it will cost me $10,000 a year to rent near town". Do you agree with her reasoning?
Business
1 answer:
Evgesh-ka [11]2 years ago
8 0

Answer:

b

Explanation:

You might be interested in
Under its executive stock option plan, National Corporation granted 15 million options on January 1, 2021, that permit executive
IrinaK [193]

Answer:

Compensation expense for 2022 and 2023 are $12 million and $16 million respectively.

Explanation:

Total compensation expenses = Number of options × Option fair of value = 15 million × $4 = $60 million

Number of years the option is allowed to be exercised = January 1, 2021 to December 31, 2023 = 3 years

Annual compensation expenses = Total compensation expenses ÷ Number of years the option is allowed to be exercised = $60 million ÷ 3 = $20 million

That shows that $20 million is recognized as compensation expenses in 2021.

As there is a 20% forfeiture of the options due to an unexpected turnover, total compensation expenses reduces to:

New total compensation expenses = $60 million × (100% - 20%) = $48 million

Accumulated expenses in 2022 = ($48 million ÷ 3) × 2 = $32 million

Compensation expenses recognized in 2022 = Accumulated expenses in 2022 - Compensation expenses already recognized in 2021 = $32 million - $20 million = $12 million

Compensation expenses recognized in 2023 = $48 million ÷ 3 = $16 million

Therefore, compensation expense for 2022 and 2023 are $12 million and $16 million respectively.

5 0
2 years ago
Instructions:Review the following graph. Then, answer the question below.
netineya [11]

the purple bar is the tallest which means it has the most growth potential:

answer is: B. There will be a growing demand for nurse practitioners in the coming years.

6 0
2 years ago
Fairchild Garden Supply expects $700 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses thi
vazorg [7]

Answer:

D) 3.48

Explanation:

Current Year Sales = $700

Growth rate = 15%

Projected Sales=$700*15% +$700

Which is $805

Required inventory = $30.2 + 0.25*projected sales

Req.Inv = $30.2 + 0.25($805)

Req.Inv = $231.45

Inventory turn over = projected sales/Req.inv

$805/$231.45

Inventory turn over = 3.48 times

8 0
2 years ago
DonutVille caters to its retirement population by selling over 10,000 donuts each week. To produce that many donuts weekly, Donu
nata0808 [166]

Answer:Flour should be acquired through a contract.

Explanation: Acquiring flour through a contact will be very important for DonutVille as it will ensure a follow-up and a feedback system where the manager of DonutVille establish a relationship with the company supplying the flour through one of its distributors or agents.

When purchasing of flour is achieved through a contact, it makes the contact a responsible person who will be needed to guarantee the supply of flour on time and to Communicate with the manager of DonutVille should there be any matters arising in the process getting supplies.

8 0
2 years ago
On September​ 1, Advantage Maintenance Company contracted to provide monthly maintenance services for the next five months at a
sveta [45]

Answer:

Adjusting Entry

December 31,

Dr. Service Revenue     $3,000

Cr. Unearned Revenue $3,000

Explanation:

Using alternate treatment the cash received in advance is recorded as the revenue initially.

On September following entry was performed

Dr. Cash        $15,000

Cr. Revenue $15,000

At the end of the year services of 4 months have been performed and the amount of one month's service is received in advance until this date. It needs to be adjusted according to the accrual concept.

4 0
2 years ago
Other questions:
  • The sea wharf restaurant would like to determine the best way to allocate a monthly advertising budget of $1000 between newspape
    5·1 answer
  • If you were visiting disney world and you used its touch-screen monitors to locate a restaurant, what type of hardware device wo
    15·1 answer
  • Julie wants to open a bank account with $75. julie estimates that she will write 20 checks per month and use her atm card at the
    13·1 answer
  • A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, they purchased 10 units at $22 each. On N
    13·1 answer
  • Item 1 Item 1 Seminole Company began the year with 23,000 units of product in its January 1 inventory costing $15 each. It made
    14·1 answer
  • Countercyclical monetary policy means that _________________. Select the correct answer below: the Fed lowers interest rates dur
    12·1 answer
  • Selby Company sold equipment that had a book value of $13,500 for $15,000. The equipment originally cost $45,000 and it is estim
    13·1 answer
  • Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a seven-year term and pay interest semiannually on
    9·1 answer
  • A company has a merit pay plan based on the relative performances of workers teams. Each worker is a team gets the same wage as
    9·1 answer
  • Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Gre
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!