Answer:
Annual depreciation (year 1)= $1,400
Explanation:
Giving the following information:
Buying price= $36,000.
Useful units= 300,000 units of product.
Salvage value= $6,000
During its first year, the machine produces 14,000 units of product.
To calculate the depreciation expense for the first year under the units of production method, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= [(36,000 - 6,000)/300,000]*14,000
Annual depreciation= 0.1*14,000= $1,400
Answer:
highest relative value highest dollar
Explanation:
The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the higher the metric is, the higher the valuation of the firm
price to earning ratio (P / E) = market value per share / earnings
The higher the P/E, the higher the relative value of the firm relative to other firms. This is because investors are confident about the prospects of growth of the firm and are willing to pay a higher price for the stock of the company
Types of P/E ratio
1. trailing p/e - it is calculated by dividing current share price by the earnings per share for the past 12 months
2. forward p/e - it is calculated by dividing current share price by the estimated per share earnings for the next 12 months
Answer:
$166,666.67
Explanation:
Clarissa wants to take charge of finding a growing perpetuity that will pay a total amount of $5,000 per year to a local museum
She wants the annual amount paid to the museum to grow by 5% per year
= 5/100
= 0.05
The interest rate is 8%
= 8/100
= 0.08
Therefore, the amount used to fund the perpetuity can be calculated as follows
Pvo= $5,000/(0.08-0.05)
= $5,000/0.03
= $166,666.67
Hence Clarissa needs $166,666.67 to fund the perpetuity.
Answer:
For Number of firms, the answer is C. Many.
For type of product, the answer is D. Differential.
For Market model, the answer is C. Monopolistic Competition.
Explanation:
From the questions above, we can conclude that the number of firms is Many because it is stated that there are hundreds of colleges and universities that serve millions of college students each year.
For the type of product, in this case service, that each college and university offers, there is service differentiation. This is because each school will offer unique and distinct ways of meeting the students' needs.
There exists monopolistic competition in markets which have several competitors selling similar products and services. The similar products and services are not ideal substitutes for each other in monopolistic competition. Here, the barriers to entry and exit in the industry are low, and the decisions that are taken by one company do not affect the competitors. Therefore, in the scenario given above, because there are several colleges and universities serving millions of students in similar ways but with differentiated methodologies and programs, they form a monopolistic competitive market.
Answer:
net income during 2019 = $109,045
Explanation:
total stockholder equity 2018 = assets - liabilities = $293,500 - $79,245 = $214,255
total stockholder equity 2019 = assets - liabilities = $497,512 - $177,212 = $320,300
change in equity from 2018 to 2019 = $106,045
$33,000 can be explained by additional capital invested, and the remaining $73,045 corresponds to change in retained earnings
change in retained earnings = net income - dividends distributed
$73,045 = net income - $36,000
net income = $109,045
