Below is an annual income statement of Julian's Online Clothing Store. Julian is already working full...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Below is an annual income statement of Julian's Online Clothing Store. Julian is already working full time in the store and P300,000 of his money has been used (invested) to buy the store and stock it with merchandise. Julian just turned down a job offer to manage a store that will pay him P250,000 per year. He did not pay himself a salary in 2019. According to the data: A. Is Julian's Online Clothing Store generating a positive, zero, or negative accounting profit for 2019? Show supporting calculations. B. What do you think are Julian's implicit costs (i.e., what are these benefits Julian is willing to forego)? C. Assume that the interest was 12% annually in the money/funds market recalculate Joe's total opportunity costs. D. What was the economic profit (or loss of Julian's Online Clothing Store in 2019? E. Evaluate the business performance based on economic profit. Revenues Costs Sales P550,000 Wholesale clothing 20,000 Equipment Labor P300,000 20,000 150,000 10,000 Inventory Adjustment Utilities and insurance Total Revenues P570,000 Total Costs $480,000 Below is an annual income statement of Julian's Online Clothing Store. Julian is already working full time in the store and P300,000 of his money has been used (invested) to buy the store and stock it with merchandise. Julian just turned down a job offer to manage a store that will pay him P250,000 per year. He did not pay himself a salary in 2019. According to the data: A. Is Julian's Online Clothing Store generating a positive, zero, or negative accounting profit for 2019? Show supporting calculations. B. What do you think are Julian's implicit costs (i.e., what are these benefits Julian is willing to forego)? C. Assume that the interest was 12% annually in the money/funds market recalculate Joe's total opportunity costs. D. What was the economic profit (or loss of Julian's Online Clothing Store in 2019? E. Evaluate the business performance based on economic profit. Revenues Costs Sales P550,000 Wholesale clothing 20,000 Equipment Labor P300,000 20,000 150,000 10,000 Inventory Adjustment Utilities and insurance Total Revenues P570,000 Total Costs $480,000
Expert Answer:
Answer rating: 100% (QA)
A To tell if Julians Online Clothing Store generating a positive zero or negative accounting profit ... View the full answer
Related Book For
Stats Data and Models
ISBN: 978-0321986498
4th edition
Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock
Posted Date:
Students also viewed these general management questions
-
What do you think are three common mistakes made by novice systems analysts during programming and testing?
-
What do you think are three common mistakes made by novice systems analysts in preparing user documentation?
-
What do you think are the sources of sustained superior profitability?
-
A supplier has the following financial information available: Cash: $100,000 Current Assets: $1,000,000 Fixed Assets: $1,000,000 Total Assets: $2,000,000 Current Liabilities: $500,000 Total...
-
During fiscal 1995, Ashland Exploration drilled 7 wells in the United States and 3 in Nigeria. One of the wells in Nigeria was productive and 2 of the wells in the United States were productive. The...
-
Large birds like pheasants often walk short distances. Small birds like chickadees never walk. They either hop or fly. Why might this be?
-
Netcap has an expected retum of 25 percent, Jmart has an expected return of 20 percent, and the risk-free rate is 5 percent. You invest half your funds in Netcap and the other half in Jmart. What is...
-
You are maintaining a subsidiary ledger account for Firefighter-Training Expenditures for 2018. The following columns are used: Inventory purchases are initially recorded as expenditures (purchases...
-
Find each angle in the rhombus. m1 = 104 m2 = = m3 = =
-
Puffer, Inc. is a C-Corporation with a 70,000 square foot location in San Marcos, Texas. The Company's core business is manufacturing high end equipment for oil rigs, oil refineries and other...
-
Name this compound. Br O CH3CHCHCH-C-H
-
What report will display the individual invoices issued and receipts posted for a specific customer?
-
Elaborate on the core business model and how it has transformed under time and cost pressures?
-
PROMPT: Since Halloween just ended, I thought it would be fun to look at some statistics. Visit the link below...Is the sample size for this survey large enough? What else would you want to know...
-
Westside sells lanterns for $ 7 5 . Variable costs are $ 4 5 . Annual sales are 4 5 , 5 0 0 lanterns. The VP of Marketing has suggested a 1 5 % price increase along with a $ 6 increase in variable....
-
On January 1 , 2 0 1 9 , Hackman Corporation issued $ 6 0 0 , 0 0 0 face value 6 % bonds dated January 1 , 2 0 1 9 , for $ 6 2 1 , 4 3 0 . The bonds pay interest semiannually on June 3 0 and December...
-
A company reports the following: Sales Average accounts receivable (net) $958,125 54,750 Round your answers to one decimal place. Assume a 365-day year. a. Determine the accounts receivable turnover....
-
What are conversion costs? What are prime costs?
-
This chapter's For Examples looked at mirex contamination in farmed salmon. We first found a 95% confidence interval for the mean concentration to be 0.0834 to 0.0992 parts per million. Later we...
-
The Centers for Disease Control and Prevention (CDC) has estimated that 19.8% of Americans over 15 years old are obese. The CDC conducts a survey on obesity and various behaviors. Here is a table on...
-
Based on the analysis of marriage ages since 1975 given in Exercise 31, find a 95% confidence interval for the rate at which the age gap is closing. Explain what your confidence interval means. In...
-
The Barings desk on the trading floor is abandoned. The computer screens are dead. The little Union Jack that was sitting on one of the terminals a few days ago has mysteriously vanished. This little...
-
Look at the annual report of an MNE. As you read about the product lines and geographical operations, what kind of organizational structure would you guess the company has?
-
What impact does the organizational structure of a firm have on the control system?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App