2. Based on the information below, (A) calculate the accounting profit, (B) the economic profit, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. Based on the information below, (A) calculate the accounting profit, (B) the economic profit, and (C) explain if this enterprise was worth the endeavor for the investor/business person. Total Revenue: $225,000 Lost salary from previous job: $100,000 Material purchases: $40,000 $100,000 Loan to business using owner's funds that would yield 12% Insurance payments: $10,000 Use of owners' warehouse that would yield $25,000 in rent Business salaries and wages: $40,000 2. Based on the information below, (A) calculate the accounting profit, (B) the economic profit, and (C) explain if this enterprise was worth the endeavor for the investor/business person. Total Revenue: $225,000 Lost salary from previous job: $100,000 Material purchases: $40,000 $100,000 Loan to business using owner's funds that would yield 12% Insurance payments: $10,000 Use of owners' warehouse that would yield $25,000 in rent Business salaries and wages: $40,000
Expert Answer:
Answer rating: 100% (QA)
Okay lets go through this stepbystep A Calculating the Accounting Profit Accounting profit is the di... View the full answer
Posted Date:
Students also viewed these economics questions
-
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
-
Question 1(1 point) You are given an investment to analyze. The cash flows from this investment are End of year $2,050 $2,533 $940 $3,065 $862 What is the future value of this investment at the end...
-
1. Based on the information provided in the case below, what is the key strategic goal for Tim Hortons as of August 2014? It would be a year of dramatic change for Tim Hortons Inc. On August 26,...
-
Marks 1. Find the limits, if they exist. If a limit does not exist, check whether the function approaches +00 x2 + 2x - 15 (5) (a) lim x-3 x2-4x +3 x2 - 4 (5) (b) lim x2 x4 - 16 Carol Ferland CF...
-
Show that when the optimal allocation is used, the variance of (2) str for two-phase sampling with stratification is given by (12.18). Discuss.
-
From preparing effective agendas to dealing with "meeting addicts," the Effective Meetings website offers advice to make business meetings more productive. Peruse the list of articles and answer the...
-
Explain the difference between mark-up and gross profit margin when pricing.
-
On December 31, 2013, Reggit Company held the following short- term investments in its portfolio of available-for-sale securities. Reggit had no short- term investments in its prior accounting...
-
Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments Human Resources...
-
Solve the structures in Figures P5-16 through P5-18 by using substructuring. Figure P5-16 (Substructure the truss at nodes 3 and 4) Figure P5-17 (Substructure the beam at node 3) Figure P5-18...
-
Use Apple's financial statements in Appendix A to answer the following. 1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 28, 2019, and (b) September 29,...
-
Update and Approve 1. Find critical numbers of f(x) = 26x - x 25.
-
Design a slider-crank mechanism so that the displacement of the slider is proportional to the square of the crank rotation in the interval 45 <0 135. Use three point Chebyshev spacing.
-
Prove the following identity: cos(2x) - 1 sin(2x) tan(x) 1 cos(2x) - 1 sin(2x) Question Help: Video Submit Question Search ASUS VivoBook
-
1 You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company design! and manufactures specialty tables. Each table is specially customized for the customer. This...
-
In the state of Indiana what would give an Officer proximate cause to perform a field sobriety test or a breathalyzer test on an individual that did not appear to be under the influence nor did he...
-
Reflective Learning Log Report ( Separate Report to be prepared for each Event ) Section A . Before the event / experience: Describe the event / experience . Consider the things that could have...
-
Find the market equilibrium point for the following demand and supply functions. Demand: 2p = - q + 56 Supply: 3p - q = 34
-
The accounting rate of return on the initial investment presented in question 4 is: a. 0.125 b. 0.156 C. 0.219 d. 0.375
-
For a typical \($120,000\) investment in equipment with a 5-year life and no salvage value, determine the present value of the tax shield using straight-line depreciation. Assume an income tax rate...
-
Each of the following statements is true regarding capital budgeting decisions, except: a. Capital expenditure proposals involve risk. b. Acommon error is to invest in unnecessary or overly complex...
Study smarter with the SolutionInn App