Answer and Explanation:
a. The computation of the internal rate of return is shown below:
Given that
The expected cash inlfows would be $9,400 for four years each
Rate of return is 7%
The Initial investment is $30,455
Based on the above information
The net present value is
= $9,400 × PVIFA factor for 7% at 4 years - $30,455
= $9,400 × 3.3872 - $30,455
= $31,840 - $30,455
= $1,385
Now the present value factor is
= $30,455 ÷ $9,400
= 3.2399
Now based on the factor table, the rate should be 9% for four years
b. Yes depend upon the internal rate of return, the park co should make the investment
Answer:
differential revenue = $7
so correct option is a.$7
Explanation:
given data
Product A costs = $6
contribution margin = $3
Product B costs = $12
contribution margin = $4
to find out
the differential revenue for this decision
solution
we get here the differential revenue for this decision that is express
so first we get here selling price for both product that is
selling price product A = Product A costs + contribution margin
selling price product A = $6 + $3 = $9
and
selling price product B = $12 + $4 = $16
so now we get differential revenue that is
differential revenue = selling price product B - selling price product A
differential revenue = $16 - $9
differential revenue = $7
so correct option is a.$7
Answer:
b. The policy made decisions for other departments in the company.
Explanation:
John Smith made the policy alone without involving the other managers. When the policy was implemented, it had to work with other departments to ensure success.
As there are 3 managers and 3 departments at BSG Labs, John Smith should have formulated the new policy with the other managers, so that issues such as scheduling and coordination between bthe various departments will run smoothly.
Answer:
$2,000
Explanation:
The computation of the amount pay to the tax authorities during the year is shown below;
Let us assume the accrued payment be $6,000
Let us assume the amount pay to the tax authorities be X
Beginning Taxes payable account balance + Accrued payment - X = Ending taxes payable account balance
$3,000 + $6,000 - X = $7,000
$9,000 - X = $7,000
So, the X is
= $9,000 - $7,000
= $2,000
hence, the amount pay to the tax authorities is $2,000
Answer: a. $56925 ; b. Account payable
Explanation:
a. If Hoffman Company pays the invoice within the discount period, what is the amount of cash required for the payment?
Purchase invoice = $65000
Less: Return = ($7500)
Net Purchase Invoice = $57500
Less: Discount = $57500 × 1% = $575
Cash received = $56925
b. What account is debited by Hoffman Company to record the return?
The account that is debited by Hoffman Company to record the return is the account payable.
