Answer:
b. No, the return is less than the required rate of 9%
Explanation:
Projected sale = 100000
Projected exp = 86000
Profit = 14000
Assets= 200000
Return on assets = 14000/200000 = 7%
Expected return = 9%
Hence, project should not be taken
Answer:
The correct answer is letter "D": The use of a higher estimated life and a higher residual value will lower the annual amount of depreciation expense recognized on the income statement.
Explanation:
Depreciation distributes the cost and cost over the useful life of the assets of tangible and real assets. A business could depreciate an asset over a period of up to thirty years, depending on the type of asset it is. There are many depreciation methods but, among the most common we can find the <em>Straight-line method, the Double Declining Balance method</em>, and <em>the Units of Production method</em>. As long as the estimated life of the asset and its residual value is high, the amount filed for the depreciation will be lower.
The journal entry to record the inventory shrinkage is :Debit Cost of goods sold $18,600; Credit Inventory $18,600.
<h3>Inventory shrinkage</h3>
Based on the information given the appropriate the journal entry to record the inventory shrinkage is :
Debit Cost of goods sold $18,600
Credit Inventory $18,600
($12,400+$39,800-$33,600)
(To record inventory shrinkage)
Inconclusion the journal entry to record the inventory shrinkage is :Debit Cost of goods sold $18,600; Credit Inventory $18,600
Learn more about inventory shrinkage here:brainly.com/question/6233622
The answer is 2 times.
Accounts recievable turnover ratio = net sales / average accounts recievable
=1,000,000 ÷ (700,000+300,000 ÷ 2)
