To
determine what the depreciation of an asset using straight line method, the
formula to be used is:
(Initial
cost of machine – salvage value) divided by estimated useful life
So in
this problem:
Initial Cost
- $135000
Salvage
Value – $15000
Estimated
Useful Life – 5 years
Plug that
in the formula
Annual
depreciation = ($135000 - $15000) / 5
= $120000/
5
= $24,000
The first
year depreciation for the machine is $24000 because the company bought it in
the beginning of the year. (So there is no need to divide this by 12 months)
To record
this:
Depreciation
Expense $24000
<span> Accumulated Depreciation $24000</span>
Answer:
Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company's ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow
Explanation:
The value of any money is determined by supplys and demands and the supplys and demands for other goods in the economy
The boy scouts, the veterans of foreign wars, most civic organizations, and many groups that people join because of mutual interest are all examples of voluntary associations. They worked together as volunteers in a form of union or agreement working together for a unified purpose or mutual interest.
Answer:
Explanation:
You need to use the formula to calculate the future value of a constant annual deposit:
![Future\text{ }value=Deposit\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg]](https://tex.z-dn.net/?f=Future%5Ctext%7B%20%7Dvalue%3DDeposit%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2Br%29%5En-1%7D%7Br%7D%5Cbigg%5D)
Where r is the expected percent return, and n the number of years.
<em><u>1. For a deposit of $30,800 at the end of each year for the next 11 years, with 7% interest.</u></em>
You will have saved:
![Future\text{ }value=\$ 30,800\times \bigg[\dfrac{(1+0.07)^{11}-1}{0.07}\bigg]](https://tex.z-dn.net/?f=Future%5Ctext%7B%20%7Dvalue%3D%5C%24%2030%2C800%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2B0.07%29%5E%7B11%7D-1%7D%7B0.07%7D%5Cbigg%5D)
<em><u>2. For a deposit of $33,300 each year, for the same number of years and with the same interest rate.</u></em>
You will have saved:
![Future\text{ }value=\$ 33,300\times \bigg[\dfrac{(1+0.07)^{11}-1}{0.07}\bigg]](https://tex.z-dn.net/?f=Future%5Ctext%7B%20%7Dvalue%3D%5C%24%2033%2C300%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2B0.07%29%5E%7B11%7D-1%7D%7B0.07%7D%5Cbigg%5D)
<em><u>3. For a deposit of $30,800 each year, but with 11 percent interest, for 11 years.</u></em>
![Future\text{ }value=\$ 30,800\times \bigg[\dfrac{(1+0.11)^{11}-1}{0.11}\bigg]](https://tex.z-dn.net/?f=Future%5Ctext%7B%20%7Dvalue%3D%5C%24%2030%2C800%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%281%2B0.11%29%5E%7B11%7D-1%7D%7B0.11%7D%5Cbigg%5D)
