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SSSSS [86.1K]
3 years ago
7

Q8. Smith Auto Dealership had beginning net fixed assets of $216,525 and ending

Business
1 answer:
AveGali [126]3 years ago
5 0

Answer:

The net cash flow is $7,844 from the sale of the assets.

Explanation:

<em>Step 1: Determine the average fixed assets</em>

The average net fixed assets can be determined using the expression;

Av=(Fb+Fe)/2

where;

Av=average net fixed assets

Fb=net fixed assets at the beginning of the year

Fe=net fixed assets at the end of the year

In our case;

Av=unknown

Fb=$216,525

Fe=$208,650

replacing;

Av=(216,525+208,650)/2=$212,587.50

The average net fixed assets=$212,587.50

<em>Step 2: Determine the net fixed assets after accounting for depreciation</em>

This can be expressed as;

Net fixed assets=average net fixed assets-depreciation

where;

average net fixed assets=$212,587.50

depreciation=$41,320

replacing;

Net fixed assets=(212,587.50-41,320)=$171,267.50

Step 3: Debit the fixed asset account and credit the cash account

Account                                Debit                    Credit

Fixed assets                        7,844                   163,423.50

Cash flow                        163,423.50                  7,844

The net cash flow is $7,844 from the sale of the assets.

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Answer:

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Explanation:

The worth of this stock today is the present value of the future dividends which is computed by discounting future dividends as well as the terminal value using the required rate of return of 14.5% as the appropriate discount rate as shown thus:

Year 1 dividend=$.65

Year 2 dividend=$0.70

Year 3 dividend=$0.75

terminal value of dividends=Year 3 dividend*(1+g)/Ke-g

g=dividend terminal growth rate=2%

Ke=required rate of return=14.5%

terminal value of dividends=$0.75*(1+2%)/(14.5%-2%)=$ 6.12  

Share price=$.65/(1+14.5%)^1+$.70/(1+14.5%)^2+$.75/(1+14.5%)^3+$6.12/(1+14.5%)^3

share price=$5.68  

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2 years ago
According to the Small Business Administration, the percentage of businesses that
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2 years ago
n January​ 1, 2018, Waller Sales issued $ 20 comma 000 in bonds for $ 18 comma 300. These are eightminusyear bonds with a stated
spayn [35]

Answer:

$18,106.25

Explanation:

For computing the carrying value of the bonds , first we have to determine the discount amortization for 8 years which are shown below:

= (Issued amount - proceeds from the bonds) ÷ time period

= ($20,000 - $18,300) ÷ 8 years × 2 years

= $106.25

Now the carrying value would be

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= $18,000 + $106.25

= $18,106.25

Since the time period is 8 which are paid in semi-annual so we double the time period

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3 years ago
Zirconia Fantasy sells only necklaces. 8 comma 000 units were sold resulting in $ 240 comma 000 of sales​ revenue, $ 60 comma 00
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Answer:

$66,667

Explanation:

Contribution margin = Sales Revenue - Variable cost = 240000-60000 = 180000

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Breakevent point in total sales = Fixed costs / Percentage of contribution margin

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The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fu
ivanzaharov [21]

Answer:

Standard price= $6.1

Explanation:

Giving the following information:

The quantity of direct materials used 3,800 lbs. Actual unit price of direct materials $6 per lb. Units of finished product manufactured 1,820 units Standard direct materials per unit of finished product 2 lbs.

Direct materials quantity variance—unfavorable $976 Direct materials price variance—favorable $380.

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380= (SP - 6)3,800

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Direct material quantity variance= (standard quantity - actual quantity)*standard price

976= (1820*2 - 3,800)*SP

6.1= standard price

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3 years ago
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