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yawa3891 [41]
3 years ago
12

A piece of equipment costs $30,000, and is expected to generate $8,500 of annual cash revenues and $1,500 of annual cash expense

s. The disposal value at the end of the estimated 10-year life is $3,000. Ignoring income taxes, the payback period is:
A. 3.53 years
B. 3.86 years
C. 4.29 years
D. 6.98 years

some other period of time not noted
Business
1 answer:
Mrac [35]3 years ago
6 0

Answer:

C. 4.29 years

Explanation:

The computation of the payback period is shown below:

Payback period = Initial investment of the equipment ÷ Cash flows

where,

Initial investment = $30,000

And, the cash flows is

= $8,500 - $1,500

= $7,000

So the payback period is

= $30,000 ÷ $7,000

= 4.29 years

By dividing the initial investment by the cash flows we can get the payback period and the same is applied above.

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If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, wha
krek1111 [17]

The necessary adjusting entry to record inventory shortage would be:

“Cost of Merchandise Sold debit $5,000; Merchandise Inventory credit $5,000.”

Cost of Merchandise Sold is the cost of goods and services that correspond to sales made to customers. In this case, we need to decrease ending inventory by the quantity of these goods ($5,000) that either were shipped to customers or assigned as being customer-owned under a certain agreement. Meanwhile, the merchandise inventory is the cost of goods on hand and is available for sale ($5,000).

 

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6 0
3 years ago
"The following per unit cost information is available: direct materials $10, direct labor $4, variable manufacturing overhead $3
natta225 [31]

Answer:

The target selling price =$45  

Explanation:

The target selling price is the sum of the total unit cost plus 25% of the the unit cost

The target selling price = Total per unit cost + (25% × total unit cost)

The total unit cost is the sum of all the costs involved making the product available to the consumer.

The sum of direct material cost , labour cost variable manufacturing, fixed manufacturing overhead, variable selling and administrative expenses and fixed selling and administrative expenses.

The target selling price would be determined using te steps below:

Step 1: Calculate the unit cost

Total unit cost = 10 + 4 + 3 + 10 + 1 + 8 = 36  

Total unit cost = $36

Step 2: Calculate the target selling price

Target selling price = Unit cost + (25%× unit cost)

The target selling price = 36 + (25% × 36) = $45  

The target selling price =$45  

8 0
3 years ago
Smith Corporation has provided the following information: Cash sales totaled $135,000. Credit sales totaled $289,000. Cash colle
klasskru [66]

Answer:

$434,000

Explanation:

The total amount that should be included in the operating income as follows:

1. Cash sales $135,000

2. Credit sales $289,000

3. Gain from the sale of property and the equipment $10,000

Operating income $434,000

hence, the $434,000 should be included in the operating income

3 0
2 years ago
You have a credit card bill from ABC Credit for a total of $3,754. Please group the transactions within the appropriate T-Accoun
LuckyWell [14K]

Credit card bill from ABC credit have listed a number of expenses made, these needs to be posted according to the relevant accounting heads.

<h3 /><h3>What is Accounting?</h3>

Accounting is the calculation of cash, in other terms it is the study of debit and credit. The accounting teaches the treatment of different transactions, the transactions are divided in different heads, asset, expense, income, liability and capital.

T Accounts should be made as follows.

Assets

DR $1500 Computers

DR $650 Furniture

DR $334 Van Payment

Expenses

DR $420 Office Supplies

DR $250 Electric Company

DR $100 Water

DR $250 Office Supplies

Petty Expenses

DR $150 Steak House

DR $100 Fuel Stop

The expenses are distributed among the heads that they are relevant to, petty expenses only contains the payment for expenses that are immaterial in nature and amount, Asset account have the payments made for assets.

Learn more about Credit card at brainly.com/question/27123519

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6 0
1 year ago
Bob is a stay-at-home father of two toddlers during the day while his wife is at work. Now, Bob would like to work at least part
dolphi86 [110]
B. Work/life balance so he can spend time with his children
6 0
3 years ago
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