Al pacacino corporation had revenues of $203,000 in its first year of operations. the company has not collected on $20,000 of its sales and still owes $25,000 on $136,000 of merchandise it purchased. the company had no inventory on hand at the end of the year. the company paid $15,000 in salaries (out of $23,000 accrued). owners invested $20,000 in the business and $20,000 was borrowed on a five-year note. the company paid $2,200 in interest (same as the amount owed for the year). assume no income tax expense. Required:
Compute net income for the first year for Al Pacacino Corporation.

At the beginning of the accounting period, nutrition incorporated estimated that total fixed overhead cost would be $50,600 and that sales volume would be 10,000 units. at the end of the accounting period actual fixed overhead was $56,100 and actual sales volume was 11,000 units. nutrition uses a predetermined overhead rate and a cost plus pricing model to establish its sales price. based on this information the overhead spending variance is multiple choice $5,500 favorable. $440 favorable. $5,500 unfavorable. $440 unfavorable.

According to the law of demand, there is an inverse relationship between price and quantity demanded. that is, the demand curve for goods and services slopes downward. why?

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805