To earn money,you decide to open up a popcorn stand at your student union.At the end of your first year of operation,your financial condition is as follows: Assume that the opportunity cost of your time is zero.
$$\begin{array} { | l | l | }
\hline \text { Purchase of popcorn maloing machine } & \mathbf { \$5 , 0 0 0 } \
\hline \text { Purchase of popping corn } & \mathbf { \$1 , 0 0 0 } \
\hline \text { Revenue from sale af popcorn } & \mathbf { \$5 , 0 0 0 } \
\hline
\end{array}$$ (a)Did you run a deficit or a surplus during your first year?
(b)Assuming a four-year useful life for your popcorn-making machine,how does your answer to (a)change if you evenly depreciate the value of your machine?
(c)How do your answers to (a)and (b)relate to the government's budget balance calculations? Explain.

Question

To earn money,you decide to open up a popcorn stand at your student union.At the end of your first year of operation,your financial condition is as follows: Assume that the opportunity cost of your time is zero.
 $$\begin{array} { | l | l | } 
\hline \text { Purchase of popcorn maloing machine } & \mathbf { \$5 , 0 0 0 } \
\hline \text { Purchase of popping corn } & \mathbf { \$1 , 0 0 0 } \
\hline \text { Revenue from sale af popcorn } & \mathbf { \$5 , 0 0 0 } \
\hline
\end{array}$$ (a)Did you run a deficit or a surplus during your first year?
(b)Assuming a four-year useful life for your popcorn-making machine,how does your answer to (a)change if you evenly depreciate the value of your machine?
(c)How do your answers to (a)and (b)relate to the government's budget balance calculations? Explain.

Quizplus · Accepted Answer

The Answer of To earn money,you decide to open up a popcorn stand at your student union.At the end of your first year of operation,your financial condition is as follows: Assume that the opportunity cost of your time is zero.
 $$\begin{array} { | l | l | } 
\hline \text { Purchase of popcorn maloing machine } & \mathbf { \$5 , 0 0 0 } \
\hline \text { Purchase of popping corn } & \mathbf { \$1 , 0 0 0 } \
\hline \text { Revenue from sale af popcorn } & \mathbf { \$5 , 0 0 0 } \
\hline
\end{array}$$ (a)Did you run a deficit or a surplus during your first year?
(b)Assuming a four-year useful life for your popcorn-making machine,how does your answer to (a)change if you evenly depreciate the value of your machine?
(c)How do your answers to (a)and (b)relate to the government's budget balance calculations? Explain.

To Earn Money,you Decide to Open Up a Popcorn Stand