Final answer:
Collecting a $90,000 accounts receivable increases Luminate Corporation's working capital by the same amount, enhancing its liquidity. In a different scenario where a firm earns $1 million in sales and incurs $950,000 in various expenses, the accounting profit would be $50,000.
Step-by-step explanation:
When Luminate Corporation collected a $90,000 accounts receivable, this transaction would increase the company's cash balance without affecting its current liabilities. This means that their working capital—which is calculated as current assets minus current liabilities—would increase by that same amount, assuming there are no concurrent changes to other current assets or liabilities. Working capital is an important measure of a firm's ability to meet its short-term obligations, and an increase generally signifies more liquidity and possibly better financial health.
Regarding the additional scenario provided: If a firm had sales revenue of $1 million last year and spent $600,000 on labor, $150,000 on capital, and $200,000 on materials, the accounting profit would be the revenue minus these expenses.
Here is a simple calculation:
- Sales Revenue: $1,000,000
- Total Expenses: ($600,000 + $150,000 + $200,000) = $950,000
- Accounting Profit: $1,000,000 - $950,000 = $50,000
The firm's accounting profit, in this case, would be $50,000. This is a straightforward evaluation of financial performance that shows the profitability after accounting for day-to-day operating expenses.