A master plan is devised for

Wendell’s Donut Shoppe is investigating the purchase of a new $18,600 donut-making machine. The new machine would permit the com

sertanlavr [38]

Answer:

1. Total Annual Cash Inflows = 5000

2. Discount Factor = 3.72

3. New Machine's internal rate of return = 16%

Explanation:

<em>Note:</em> the question is incomplete and it lacks essential data to be used in part 4. Without the exhibits mentioned in the questions, it is not possible to solve this question completely. We will be solving it till part 3.

1) What would be the total annual cash inflows associated with the new machine for capital budgeting purposes?

Answer:

In this we have to calculate the total annual cash inflows and the formula to calculate it is mentioned below:

Total Annual Cash Inflows = Savings in Part Time help annually + Additional contribution Margin from Expected Sales.

Total Annual Cash Inflows = 3800 + ( 1000 x 1.20)

Total Annual Cash Inflows = 3800 + 1200

Total Annual Cash Inflows = 5000

2. What discount factor should be used to compute the new machine’s internal rate of return?

Answer:

Formula to calculate the Discount factor:

Discount Factor = Price of new machine/ annual cash inflow

Price of new machine = 18600 USD

Annual cash inflow = 5000

Discount Factor = 18600 /5000

Discount Factor = 3.72

3. What is the new machine’s internal rate of return?

Answer:

As, it can be seen from the exhibits (which are missing from this question) that the discount factor for 6 years is nearly closest to 16%, hence the new machine's internal rate of return = 16%

<em>Note:</em> the question is incomplete and it lacks essential data to be used in part 4. without the exhibits mentioned in the questions. It is impossible to solve further.

7 0

3 years ago

Which accounting principle states that a company should record revenues when they provide goods and services to customers?

EastWind [94]

Revenue Recognition Principle

An accounting principle that states that a company should record revenues when they provide goods and services to customers.

5 0

3 years ago

What are the four conditions of monopolistic competition?

professor190 [17]

1) Many firms

2) Few artificial barriers to entry

3) Slight control over price

4)Differentiated products

5 0

3 years ago

Read 2 more answers

Acc 450 when financial statements are affected by a material departure from generally accepted accounting principles, the audito

elixir [45]

Acc 450 when financial statements are affected by a material departure from generally accepted accounting principles, the auditors should Issue an "except for" qualification or an adverse opinion.

When auditors were unable to gather sufficient appropriate audit evidence on specific matters and their impact was material but not pervasive, a qualified opinion was also offered. Auditors typically provide a qualified opinion by stating that, with the exception of particular transactions or balances, or circumstances, the financial statements are free of major misstatements.

To describe the nature and circumstances that led auditors to modify their view in the audit report, a reason for adverse opinion paragraph must be added as a distinct paragraph to an adverse audit report.

The balance sheet and income statement, as well as each of their individual line items, would alter if the financial statements adhered to appropriate accounting rules, according to a basis for unfavourable opinion paragraph.

Learn more about Financial statements here brainly.com/question/16479401

#SPJ4

4 0

2 years ago

The most reliable procedure for an auditor to use to test the existence of a client's inventory at an outside location would be

Inessa [10]

The most reliable procedure for an auditor to use to test the existence of a client's inventory at an outside location would be to: Observe physical counts of the inventory items.

<h3>Which of the following audit procedures is best to perform to determine that company legally owns inventories?</h3>

To best ascertain that a company has properly included merchandise that it owns in its ending inventory, the auditors should review and test the: Purchase cutoff procedures. Purchase cutoff procedures should be designed to test whether all inventory Owned by the company was recorded.

Observe merchandise and raw materials during the client's physical inventory taking.

To learn more about the inventory visit the link

brainly.com/question/14184995

#SPJ4

4 0

2 years ago