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Rama09 [41]
3 years ago
7

A company is considering the purchase of a new machine for $48,000. Management expects that the machine can produce sales of $16

,000 each year for the next 10 years. Expenses are expected to include direct aterials, direct labor, and factory overhead totaling $8,000 per year plus depreciation of $4,000 per year. All revenues and expenses except depreciation are on a cash basis. The payback period for the machine is?
Business
1 answer:
joja [24]3 years ago
5 0

Explanation & answer:

Cash basis, so all monies retain same values over the years.

Let x = payback period in years

Salvage value of machine

= 48000 - 4000x

Sales

= 16000x

Total revenue after x years

R = 16000x

Expenditures over x years

C = Cost of machine + materials + depreciation

= 48000 + 8000x + 4000x

= 48000 + 12000x

For payback

R = C

16000x = 48000 +12000x

Solve for x

x = 48000/4000 = 12 years

By that time, the machine has no more salvage value.

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Review the transactions and determine the accounts, the account types (use assets, liabilities, common stock, dividends, revenue
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Answer:

Accounting treatment (debit credit rules) of given entries

Explanation:

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Furniture ie Asset increase - Debit , Creditor (Furniture Supplier) ie Liability increase - Credit

  • Provided services on account

Debtor ie Asset increase - Debit , Sale ie Income increase - Credit

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2 years ago
Investigating careers
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B. It is a state of actual emergeny.

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2 years ago
Equity financing (or funding) means ________.
Zanzabum

Answer:

A) exchanging partial ownership in a firm

Explanation:

Equity is the basic source of fund for any corporation, it the most initial phase in which equity is issued in exchange of a share of ownership in the company. For this the equity holder pays money to the company.

In this manner there is an ownership distributed for the share of money needed by the company.

This does not involve any statutory return payment on behalf of company in later future. As against it in case of loan, it needs to be repaid.

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7 0
2 years ago
Left, right, center,and justify are types of what
forsale [732]

Answer:

Justified Alignment

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8 0
2 years ago
Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor recei
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Answer:

1. $163,800

2. Dr Cash $ 89,000

Dr Notes receivable $ 671,000

Cr Deferred revenue $ 760,000

3. $ 607,120

Explanation:

1. Computation of the amount that Monitor would calculate as the stand-alone selling price

Total amount of franchise agreement $760,000

Less: stand-alone selling price of training $ (18,200)

Less: stand-alone selling price of building and equip $ (578,000)

Stand-alone selling price of five-year right $163,800

2. Preparation of journal entry that Monitor would record on July 1, 2016,

Dr Cash $ 89,000

Dr Notes receivable $ 671,000

(760,000-89,000)

Cr Deferred revenue $ 760,000

3. Calculation for the amount of revenue that Monitor would recognize in the year ended December 31, 2016,

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1st Sep 2021:

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31st Dec 2021:

$163,800/60 Months*4 Months $ 10,920

Total Revenue to be recognized $ 607,120

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