Answer:
Accumulated Depreciation as on 31st December 2017 is 2448
Explanation:
Depreciation using straightline method=<u>Cost of equipment-salvagevalue</u>
useful life of the asset
Depreciation =<u> 12,240-0</u>
5years
Depreciation on 31st December 2017 = $2448
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Answer:
Check the explanation
Explanation:
The raw material that was used during the month is calculated by adding beginning inventory with purchases and deducting the ending inventory from it.
Here from the below equation, only the purchase are not given, so we put the figures in the formulas and get the amount of purchases.
The beginning and ending balance are also given only purchases are rising, which can be calculated as given above.
Kindly check the workings in the attached image below.
Answer:
$10,464.41
Explanation:
in order to answer this question we can use the external financing needs formula, except that we will have EFn = 0, and look for Δ Sales
EFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
- EFN = $0
- A= assets = $155,000
- S = current sales = $66,000
- Δ = ???
- L = current liabilities = $0
- PM = profit margin = $30,300 / $66,000 = 0.4591
- FS = current sales + Δ Sales = $66,000 + Δ Sales
- 1 - d = 1 - dividend payout ratio = 1 - 0.3 = 0.7
0 = 2.3485Δ - 0 - (0.4591 x FS x 0.7)
0 = 2.3485Δ - (0.3214 x FS)
0 = 2.3485Δ - [0.3214 x ($66,000 + Δ)]
0 = 2.3485Δ - $21,212.40 + 0.3214Δ
$21,212.40 = 2.0271Δ
Δ = $21,212.40 / 2.0271 = $10,464.41
If no new equity is raised, sales can increase by $10,464.41. Total forecasted sales = $76,464.41
