Jerry was working as a veternarian, and he earned an annual income of $135,000. He had savings of $86,000 in the bank, which was earning 3% interest per year. Then he decided to quit and start his own landscaping business. He used his $86,000 savings to purchase a truck and equipment. The values for his first year with his new business were: Revenue 265,000 Wages for employees 108,000 Insurance 2990 Depreciation 1920 Gasoline and vehicle 6125 maintenance Calculate Jerry's accounting profit for his first year. Answer:
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- John decided to leave his job and open a bookshop in the city center. He was working as an engineer before and getting an annual salary of $70000. For the bookshop he paid $40000 for his worker, $30000 for rent, $20000 for utilities. He used his savings that was equivalent to $120000 at an interest rate of 7%. He bought all the books that he planned to sell by his savings. If he opens his bookshop in mall rather than city center his profit was predicted to be $50000. At the end of the first year his revenue from sales was identical to $420000. For John Calculate the total profit/loss.Harvey quit his job where he earned $45,000 a year. He figures his entrepreneurial talent or foregone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. The total revenues for the firm in the first year were: Multiple Choice O $605,000 $825.000 $50,000 $100,000 OHarvey quit his job at State University, where he earned $62,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $4,000 a year. To start the business, he cashed in $50,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 10,000 units of software at $72 for each unit. Of the $72 per unit, $60 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building.
- I put $1000 in an account from my high school graduation gifts, and $2000 into the same account after my college graduation 4 years later. Five years after I ?started my first job how much is in the account if it earns 4% per yearYour grandfather started his own business 52 years ago. He opened an investment account at the end of his third month of business and contributed $x. Every three months since then, he faithfully saved another $x. His savings account has earned an average rate of 5.73 percent annually. Today, his account is valued at $289.209.11. How much did your grandfather save every three months assuming he saved the same amount each time? Can the calculator and excel solution be provided?Assume that a carpenter borrowed $2,000 to be paid offin a year to finance a machine that would make him workfaster. As a result, she is able to take on more projects andcollect $400 more earnings in the first year, after paying offthe principal of $2,000. However, there is a 15% rental fee(interest) on her loan, which she also has to pay off. Whatis the carpenter’s net earnings for the first year? (Roundyour response to the nearest dollar.)
- Jerry invested $10,000 in two mutual funds. Fund A earned 6% profit during the first year, and Fund B earned 2% profit. If he received a total of $474 profit, how much had he invested in each mutual fund? second question Your yard is a mess, and you decide to hire a landscaper. The Greenhouse charges a $80 consultation fee plus $14 per hour for the actual work. Determine the number of hours of yard work for the cost of hiring the Greenhouse to equal the cost of hiring Garden Pros. question 3 At a concession stand, five hotdogs and five sodas cost $30. Two hot dogs and four sofas cost $15. Determine the price of each hot dog and each soda.1. Maria is the owner and operator of a small local bakery that has annual sales revenue of $200,000. The annual salary expense paid to Maria's employees is $50,000. The cost of supplies used during the year totals $50,000. The amount paid for the annual rent for the building and utilities is $30,000. Maria used $100,000 of her personal savings to purchase equipment for the shop. Maria could have earned a 10% interest rate on this $100,000 if it had been left in the bank. Maria has rerently been offered a job to work full-time as a pastry chef for $65,000 at a restaurant in town.. 1. Calculate the accounting profit for this business. 2. Calculate the economic profit for this business. 3. Explain whether Maria should continue to own and operate the bakery or whether she should accept the job at the restaurant.George used to work as a research analyst earning $80,000 per year. George has decided that he has had enough of the rat race and has decided to start his own business, and so he bought a local kebab shop for $45,000. To pay for the business, he took out his term deposit of $90,000 which until then was earning him 5.6% interest p.a. With the remainder of the money, he used it to pay a part time assistant of $25,000, and he runs the business by himself the rest of the time. He used the remainder of the money to pay for stock. In his first year of the business, George took in $50,00o sales. (a) As an accountant, work out Georges profit during the first year of trading. (b) As an economist, work out George's profit during the first year of trading.
- A man formerly employed as a chief mechanic of an automobile repair shop has saved P1,000,000 which are now invested in certain securities giving him an annual dividend of 15%. He now plans to invest this amount in his own repair shop. In his present job, he is earning P25,000 per month, but he has to resign to run his own business. He will need the services of the following: 2 mechanics each earning P400 a day, and 8 helpers earning P200 a day. These men will work on average 300 days a year. His other expenses are the following: Rental = P30,000 a month Miscellaneous = P25,000 a month Sales tax = 3% of gross income Insurance = 2% The Length of his lease is 5 years. If the average charge for each car repair by his shop is P1,000. Determine the number of cars he must service in one year so that he will obtain a profit of at least 20% on his investment?James Rivera earned his degree in drafting at a community college and recently began his new career. He was happy to learn that his new employer will deposit $2500 into his 401(k)-retirement account at the end of each year. Find the amount he will have accumulated in 15 years if funds earn 8% per year.Robert invested the profit of his business in an investment fund that was earning 3.25% compounded monthly. He began withdrawing $4,000 from this fund every 6 months, with the first withdrawal in 5 years. If the money in the fund lasted for the next 7 years, how much money did he initially invest in the fund?