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3 years ago

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:

Step 1: Determine the average fixed assets

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

Step 2: Determine the net fixed assets after accounting for depreciation

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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8 0

2 years ago

Read 2 more answers

Antonio lives in New York City and runs a business that sells guitars. In an average year, he receives $723,000 from selling gui

dexar [7]

Answer:

566677

Explanation:

3 0

3 years ago

Describe and evaluate what Pfizer is doing with its PfizerWorks. 2. What structural implications—good and bad—does this approach

8090 [49]

Answer: Pfizer is the world's largest pharmaceutical firm that's has a wide range in research. Most of their work is dependent on research they carry out, strategies they have developed from the research and innovation they put in place.

Explanation:

Pfizer is the world's largest pharmaceutical firm that's has a wide range in research. Most of their work is dependent on research they carry out, strategies they have developed from the research and innovation they put in place.

They look at making a concept in the future where they would work remotely and connect with workers in any where in the world and share information.

This arrangement would work for many other firms, as most firm have started planning towards working remotely, and many have started out the process already.

Organizational structure has a big role to play in the efficiency of an organization, it depicts the work flow from the top to the bottom, what each department is doing, who guides them and how they can do better.

3 0

3 years ago

Match the appropriate costing method to the description

sp2606 [1]

Answer:

a. Absorption costing only -- 8. Includes gross profit on the income statement
2. Required by generally accepted accounting principles.
b. Variable costing only -- 6. Generally provides the most useful report for setting long-term prices.
3. Treats fixed manufacturing cost as a period cost.
5. Generally provides the most useful report for controlling costs.
4. Operating income is impacted by changes in inventory level.
c. Both absorption and variable costing -- 7.May be used in a manufacturing company
1.Treats fixed selling cost as a period cost.

Explanation:

The absorption costing includes that all the manufacturing costs which are given to the units produced and the cost of a finished product will be the cost of the direct material and labor.

Variable cost is a method that assigned the variables costs to the inventories and means that overall cost changes to expenses in a time of occurrence.

Both of these costs are related to the method of the production and costs that are incurred in the production and in which method the company uses to make.

8 0

3 years ago

Park Co. is considering an investment that requires immediate payment of $34,000 and provides expected cash inflows of $11,800 a

Galina-37 [17]

Answer:

NPV = 3,404.41

Explanation:

We will calculate the net present value doing:

NPV = present value of the cash flow - investment

Investment = 34,000

Now we need to discount each cash flow at the given rate.

For that, we will treat the cash flow as an annuity of 11,800 for 4 year at 10% rate:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 11800

time 4

rate 0.1

$11800 \times \frac{1-(1+0.1)^{-4} }{0.1} = PV\\$

PV $37,404.41

NPV = present value of the cash flow - investment

NPV = 37,404.41 - 34,000 = 3,404.41

3 0

3 years ago