Answer:
involve an immediate cash outlay in order to obtain a future return
require a great deal of analysis prior to acceptance
Explanation:
A capital budgeting decision refers to an investment and the financial commitement. If we considered a project so here the business is making the financial commitment and at the same time it invest in the longer period that have an influence on the future projects
So it is an instant cash outflow for gaining a future return and also have a great deal before accepting it
Answer:
$5,000
Explanation:
Stockholders Equity Includes the Add-in-capital par value, Add-in-capital excess value of Common and Preferred, Net income accumulated value and dividends.
Ending Stockholders Equity = Beginning Stockholders Equity + Income for the period - Dividend paid During the period
As first year of Operation the value of stockholders equity is considered as $0
Ending Stockholders Equity = $0 + ($60,000 - $33,000) - $22,000
Ending Stockholders Equity = $27,000 - $22,000
Ending Stockholders Equity = $5,000
Answer: c. Ten years, because maintenance costs don't increase.
Explanation:
With the maintenance costs constant at $24,000 a year, the machine is still expected to go 10 years before it's x-ray source is depleted and it has to be scrapped.
This means that the useful life is therefore 10 years because the maintenance cost will not increase but will still keep the machine going for 10 years.
Answer:
$2,600
Explanation:
As we know that the inventory should be recorded at a cost or market value which ever is lower
In the given case,
The cost is
= 200 units ×$16 per unit
= $3,200
And, the market value is
= 200 units × $13 per unit
= $2,600
So as we can see that the lower value is $2,600 and the same is to be reported on the balance sheet
