Answer:
Following are the solution to the given question:
Explanation:
A financial manager should understand adequate information on accountancy. This is irrespective of whether the business does have a trained counterpart.
Accountancy is a necessary input into the function of financial management. Throughout the extent, as accounts were important input in financial decision-making is closely connected with both the interaction between finance and financial.
Accrual analysis provides information mostly on the company's operations. The result of the accountancy is accounts like the income statement, the income statement, and the position financial adjustments report. The information in such statements helps money advisors assess a company's previous growth and career projections.
The purpose of accountancy in the choice process is to gather and provide financial data on the institution's past, present, and future activities.
During the economic transaction, the finance department uses these data. This is not possible for money advisors to collect data or to make choices from accounts. And an investor's primary focus is to collect data and display it, whereas budgeting, control, and judgment are the main job of a financial manager. In a sense, financial management starts at the end of accountancy.
Answer:
Company should continue with old machine (Alternative 1)
Explanation:
Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)
DIFFERENTIAL ANALYSIS
Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income
REVENUES
Proceeds from sale of machine
$0 $50500 $50500
COSTS
Purchase price $0 -$75000 -$75000
Direct labor -$56000 -$37000 19000
(11200*5 = -56000)
(7400*5 = -37000)
Income (loss) -$56000 -$61500 -$5500
Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)
Answer:
A. 6.75%
Explanation:
In this question, we use the Rate formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $1,021.16
Future value or Face value = $1,000
PMT = 1,000 × 7% ÷ 2 = $35
NPER = 13 years × 2 = 26 years
The formula is shown below:
= Rate(NPER,PMT,-PV,FV,type)
The present value come in negative
So, after solving this, the pretax cost of debt is 6.75% (3.38% × 2)
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