Answer:
The amount of depreciation expense for 2018 would be D) $30,000.
Explanation:
The units-of-activity depreciation method is calculated by using the following formula:
Depreciation Expense = [(Cost of machine − Salvage Value)/Life in Number of hours run] x Number of hours actual run = Depreciation Expense per hour x Number of hours run.
In the company,
Depreciation Expense per hour = ($375,000 - $75,000)/40,000 = $7.5
The company ran the machine for 4,000 actual hours in 2018.
The amount of depreciation expense for 2018 = $7.5 x 4,000 = $30,000
<span>Given that,
Promissory note A = 5,500
Discount rate i = 12%
i = 12/100
Term n= 5 months
we know that,
1 year = 12 months
5 months= 5/12
So we get,
A = 5,500
i = 12/100
n= 5/12
To find the ada's proceeds on the loan formula is,
Proceeds=A(1+i)^n ........... (1)
Put the value of A,i,n in equ (1)
Proceeds=5500(1+12/100)^5/12
=5500(1+0.12)^0.417
=5500(1.12)^0.41667
=5500(1.04835)
Proceeds=5765.94
Therefore $5765.94 Proceeds on the loan</span>
Answer:
145 millons free cash flow for the year
Explanation:
100 operating income
+ 15 depreciation (this expense do not involve cash, so they add up cash)
+50 long term asset sales (more cash in form of currency)
-10 capital expenditure (cash used purchase, mantaing or improve their assets)
-10 investment in working capital (we use it to adquire assets or pay liabilities)
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145 millons free cash flow for the year
Answer:
Elasticity of demand = 1
Explanation:
In the given scenario, if there are any changes in the income of Arista, the percentage of spending is always constant. We can say that income elasticity of demand is always equal to 1 .
Another change in the Arista scenario is that the percentage change in demand is always equal to the percentage change in income.
Answer:
summarizes and documents the firm's financial activities during the past year
Explanation:
A firm's annual report must include a comprehensive report about the firm's financial and operational activities throughout the year. The SEC requires public corporations to prepare and disclose quarterly reports (every 3 months) that are available to both stockholders and other people interested in them. Generally private companies are required to prepare at least one annual report.
