Answer:
$9,600,000
Explanation:
The computation of the projected operating cash flow is given below:
= EBIT × (1 - tax rate) + depreciation expense
where
EBIT should be
= $20,000,000 - $8,000,000 - $6,000,000
= $6,000,000
Now the operating cash flow should be
= $6,000,000 × (1 - 0.40) + $6,000,000
= $3,600,000 + $6,000,000
= $9,600,000
Answer: $12000
Explanation:
The amount of depreciation expense that Nick should record for the first year will be:
The depreciation will be:
= 1/no. of years
= 1/10
= 10%
Then, the rate of depreciation for double-declining will be:
= 10% × 2
= 20%
Then, the depreciation for the first year will be:
= $60000 × 20%
= $60000 × 0.2
= $12000
Therefore, the amount of depreciation expense that Nick should record for the first year is $12000.
Depreciation expense should Nick record for the first year is $12000
Answer:
In the balance sheet the firm will disclosure the Account receivables for his net value that is after reducing the expected uncollectible amounts
The net A/r will be of 52,400
Explanation:
he company will do an adjusting entry to create a contra-asset account to represent the net amount of receivables:
bad debt expense 1,200 debit
allowance for doubful expense 1,200 credit
Now, it will use the allowance account to reduce the account receivables balance:
accounts receivables 53,600
allowance <u> (1,200) </u>
net 52,400
Greater higher!!!!!!!!!!!!!
