Answer and Explanation:
The computation of the payback period for each investment is shown below;
For Option 1
= Initial Investment ÷ Annual Cash Flow
= $280,000 ÷ $134,569
= 2.081 Year
Here Annual cash inflow is
= Net income + Depreciation
= $80,769 + (($280,000 - $11,000) ÷ 5)
= $134,569
For Option-2
= Initial Investment ÷ Annual Cash Flow
= $200,000 ÷ $70,429
= 2.84 Year
Here Annual cash inflow is
= Net income + Depreciation
= $44,000 + (($200,000 - $15,000) ÷ 7)
= $70,429
Answer:
See
Explanation:
Selling price = $25,000/1,000 = $25
Variable cost = $17,500/1,000 = $17.5
1,001 units
Contribution margin income statement
Sales ($25,000 + $25)
$25,025
Less variable expenses
Answer:
Kindly see Explanation
Explanation:
April 10:
Dr Cash 37,800
Cr Sales 34,500
Cr Sales taxes 3,300
April 15:
Dr Cash 28,080
Cr Sales 26,000
Cr Sales taxes 2,080
Cash = 34500+3300 = 37800
Sales = 28080/1.08 = 26000
Sales tax (28080 - 26000) = 2080
Answer:
total amount reported in the cash flow from investing activities = book value + realized gain = $55,485 + $7,610 = $63,095
Explanation:
In order for this specific gain to be reported only once in the cash flow statement, it must first be deducted from the cash flow from operating activities as an adjustment to net income.
