A liability would be credited and an expense would be debited if the business

Michigan Mattress Company is considering the purchase of land and the construction of a new plant. The land, which would be boug

swat32

Answer:

6 years

Explanation:

The Payback period calculates how much it takes the amount invested in a project to be recovered from the cumulative cash flow.

Total amount invested = $500,000 + $100,000 = $-600,000

Cash inflow in year 2 = $100,000

Amount recovered in year 2 = $-600,000 + 100,000 = $-500,000

Cash inflow in year 3 = $100,000 × 1.1 = 110,000

Amount recovered in year 3=$-500,000 + 110,000 = $-390,000

Cash inflow in year 4= $121,000

Amount recovered in year 4 = $-390,000 + $121,000 = $-269,000

Cash inflow in year 5= $133,100

Amount recovered in year 5 = $-269,000 + $133,100 = $-135,900

Cash inflow in year 6 = $146,410

Amount recovered in year 6 = $146,410 $-135,900 = $10,510

The amount is recovered In 5.93 years

I hope my answer helps you

8 0

3 years ago

Given the following, calculate total manufacturing costs: Direct materials: $40,000; Direct labor: $100,000; Manufacturing overh

vfiekz [6]

Answer:

cost of goods manufactured= $278,000

Explanation:

Giving the following information:

Direct materials: $40,000

Direct labor: $100,000

Manufacturing overhead applied: $120,000

Beginning Work in process inventory: $30,000

Ending Work in process inventory: $12,000

<u>To calculate the total manufacturing costs, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 30,000 + 40,000 + 100,000 + 120,000 - 12,000

cost of goods manufactured= $278,000

4 0

3 years ago

4.

JulsSmile [24]

Answer:

Managing your money behavior

Explanation:

Personal finance is the management of individual financial activities of generating income and expenditure. It involves the process of setting personal financial goals and making plans on how to achieve them. Personal finance entails developing personal budgets, savings and investment plans to achieve short term and long term financial goals.

Individuals may need to hire personal finance managers to help them manage their finances. The role of the personal-finance manager is to advise and help in the making and implementation of financial goals. Personal finance involves managing money behavior to achieve the desired results.

4 0

3 years ago

Elizabeth and Niko are very organized and do an excellent job organizing their personal financial records. How will this BEST he

grandymaker [24]

Answer:

They will get faster responses.

3 0

3 years ago

Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The diff

Afina-wow [57]

Answer:

Case 1 = $420 million

Case 2 = $280 million

Case 3 = $350 million

Explanation:

As per the data given in the question,

Annual value by one distributor = $420 million per year

Annual value by two distributor = $560 million per year

Case 1)

The marginal value of first distributor is more than second

So when negotiating the value, it is = $560 million - $420 million = $140 million

and this value would be distribute between both. so each will get = $140 million / 2 = $70 million

and you would expect to capture $420 million of this deal

Case 2)

As distributors are run by government, so negotiation will be done with both the distributor at same time and margin would be $560 million and you would be grabbed = $560 million ÷ 2 = $280 million

Case 3)

In this case marginal amount of contact = $560 million - $140 million = $420 million

and half of it = $420 million ÷ 2 = $ 210 million, which is the amount to be offered

and you would expect to grab the remaining amount = $560 million - $210 million

= $350 million

7 0

3 years ago