Answer:
B : $70,000
Explanation:
The formula and the computation of the annual rate of return is shown below:
= Annual net income ÷ average investment
where,
Annual net income is XXXXX
And, the average investment would be
= (Original investment required + salvage value) ÷ 2
= (120,000 + $20,000) ÷ 2
= $140,000 ÷ 2
= $70,000
By placing these values we can easily compute the annual rate of return
Answer:
d. $91,250
Explanation:
We can calculate variable costs by using the contribution margin ratio formula.
Contribution Margin Ratio= Sales revenue Less Variable Costs/Sales revenue
45%= $ 425,000- Variable Costs / $ 425,000
45% * $425,000= $ 425,000 -Variable Costs
$ 191250= $ 425,000- Variable Costs
Variable Costs = $ 425,000- $ 191250
Variable Costs = $ 233750
Sales $ 425,000
Variable Costs 233750
Fixed Costs= $ 100,000
Income from Operations= $ 91250
Answer:
Debit Office Furniture account $710
Credit Cash account $170
Credit Accounts payable $710
Being entries to recognize office furniture partly paid for.
Explanation:
When items are purchased using cash, the corresponding credits in such transactions are recorded in the cash account. Where the item is purchased on account (or credit), the credit is posted to accounts payable.
Total worth of the office furniture = $170 + $540 = $710
The total debit for this will be recorded in the office furniture account.
Hence to recognize the transaction,
Debit Office Furniture account $710
Credit Cash account $170
Credit Accounts payable $710
Being entries to recognize office furniture partly paid for.
Answer:
$10,000
Explanation:
Depreciation is charged to every asset based on the life and usage of such asset.
Straight line depreciation method charges equivalent depreciation each year of the useful life of the asset.
Here, as provided straight line depreciation = 
Here, cost of asset = $48,000
Salvage value = $8,000
Thus, numerator in fraction = $48,000 - $8,000 = $40,000
Useful life of the asset = 4 years
Therefore, depreciation expense for each year = 
It will be same for each year, therefore, depreciation expense for year 2 = $10,000
Any level of education is very important in all aspect however the first degree is the most important and with the highest return on investment. The first degree is undergraduate degree.
