The Table Below Provides the Total Revenues and Costs for a Small

question 28

Multiple Choice

The table below provides the total revenues and costs for a small landscaping company in a recent year. $\begin{array}{|l|l|}\hline \text { Total Revenues }(\$) & 250000 \\\hline & \\\hline \text { Total Costs }(\$) & \\\hline \text { wages and salaries } & 150000 \\\hline \text { risk-free return of } 2 \% \text { on owner's capital of } \$ 20000 & 400 \\\hline \text { - interest on bank loan } & 1500 \\\hline \text { - cost of supplies } & 27000 \\\hline \text { depreciation of capital equipment } & 8000 \\\hline \text { additional wages the owner could have earned in next } & 30000 \\\text { best alternative } & \\\hline \text { - risk premium of } 4 \% \text { on owner's capital of } \$ 20000 & 800 \\\hline\end{array}$ TABLE 7- 2
-Refer to Table 7- 2.The explicit costs for this firm are

• A)$186 900.
• B)$217 300.
• C)$186 500.
• D)$178 500.
• E)$217 700.

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Definitions:

Financing Activities

Transactions that involve changes in equity and long-term liabilities on the company's balance sheet, such as issuing shares or obtaining long-term loans.