Answer:
Explanation:
1. Calculate the price of the car in a year from now.
This is add the 4% on the current price:
2. Calculate the amount of money that must be put aside to have $20,800 in a year:
Use the formula of monthly compound interest, with 6% annual interest
Original purchase cost $15,230 $25,080
Accumulated depreciation $ 6,800 _
Estimated annual operating costs $24,950 $19,560
Useful life 5 years 5 years
If sold now, the current machine would have a salvage value of $8,490. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.
Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
The incremental cost is ($10,360)
Explanation:
Analysis of total cost over the 5 year period
Retain Old Machine Buy New Machine
Variable / Incremental Operating
Costs
Old Machine 124,750
New Machine 97,800
Old Machine Book Value
Retain: Annual depreciation 8,430
Buy : Lump sum written off 8,430
Old Machine Disposal (8,490)
Purchase Cost of New Machine 25,080
Total Cost 133,180 122,820
The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)
c. Paid $513 in principal and $91 in interest expense on long-term debt.
d. Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account.
e. Incurred $10,766 in shipping expenses, all on credit. F. Paid $28,241 cash on accounts owed to suppliers. G. Incurred $4,332 in marketing expenses; paid cash. H. Collected $620 in cash from customers paying on account. I. Borrowed $6,359 in cash as long-term debt. J. Used inventory costing $62,752 when sold to customers. K. Paid $177 in income tax recorded as an expense in the prior year.
The subject of this question is Business at a College level. It provides various transactions and asks for clarification. The step-by-step breakdown of each transaction helps understand the scenario and the financial implications.
The subject of this question is Business and it is at a College level. The question provides various transactions and asks for clarification on the subject matter. Below is a step-by-step breakdown of each transaction:
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The question involves interpreting 'business transactions' and their effect on the components of the accounting equation (Assets = Liabilities + Equity). Various business transactions mentioned include issuing stock, purchasing equipment, earning and collecting sales revenue, borrowing and paying long-term debt, and more.
The subject of this question encompasses various business transactions that ultimately affect an entity's financial statements. The transactions in this question fall into categories of equity transactions (issuing stock), asset acquisitions (purchasing equipment), liabilities and equity transactions (borrowing and paying long-term debt), revenue and receivable transactions (earning and collecting sales revenue), expense and payable transactions (incurred shipping and marketing expenses), inventory transactions (using inventory sold to customers) and tax transactions (paying income tax recorded as an expense in the previous year).
Each of these transactions will have a dual effect on the components of the accounting equation (Assets = Liabilities + Equity).
For instance, when the company issued stocks for $6 cash, it increased its cash asset and its equity. When the company purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account, it increased its equipment asset, decreased its cash asset and increased its Accounts Payable liability.
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Answer:
The correct answer for option (a) is $515,000 and for option (b) is $560,000.
Explanation:
According to the scenario, the given data are as follows:
Earnings before depreciation and taxes = $620,000
Depreciation = $320,000
So, we can compute the cash flow by using following formula:
Cash Flow = EBIT × (1 - Tax Rate) + Depreciation
(a). For tax bracket = 35%
Here EBIT = EBITDA - Depreciation
= $620,000 - $320,000
= $300,000
Now by putting the value in the formula, we get:
Cash Flow = $300,000 × ( 1 - 35%) + $320,000
= $300,000 × 0.65 + $320,000
= $195,000 + $320,000
= $515,000
Hence, the cash flow is $515,000 for 35% tax bracket.
(b) For tax bracket = 20%
Here EBIT = EBITDA - Depreciation
= $620,000 - $320,000
= $300,000
Now by putting the value in the formula, we get:
Cash Flow = $300,000 × ( 1 - 20%) + $320,000
= $300,000 × 0.8 + $320,000
= $240,000 + $320,000
= $560,000
Hence, the cash flow is $560,000 for 20% tax bracket.
It opens one of the current worksheets into a new window.
It opens a blank workbook.
It opens a new side-by-side window of an existing workbook.
Answer:
It opens one of the current worksheets into a new window.
Answer:
It opens one of the current worksheets into a new window.
Explanation:
edge 2020 lesson-managing workbook properties
Answer:
c. $320
Explanation:
Opportunity cost is an economic term for expressing cost in terms of forgone alternatives. The opportunity cost of Dana is calculated as;
Hours spent baking cookies = 4 hours, the amount earned per hour when Dana is working as yoga instructor = $80.
Therefore, the total opportunity cost of Dana, when she is baking is cookies;
= 4 hours × $80
= $320.