To
determine what the depreciation of an asset using straight line method, the
formula to be used is:
(Initial
cost of machine – salvage value) divided by estimated useful life
So in
this problem:
Initial Cost
- $135000
Salvage
Value – $15000
Estimated
Useful Life – 5 years
Plug that
in the formula
Annual
depreciation = ($135000 - $15000) / 5
= $120000/
5
= $24,000
The first
year depreciation for the machine is $24000 because the company bought it in
the beginning of the year. (So there is no need to divide this by 12 months)
To record
this:
Depreciation
Expense $24000
<span> Accumulated Depreciation $24000</span>
Answer:
(C) How much debt does clip joint company already have?
Explanation:
Bond investors are more likely to ask a bond issuer (the company issuing the bonds) its current level of debt before investing. This information is important as it informs the order that the current bond holders will occupy in a repayment hierarchy if the company was unable to pay back the debt and it needs to be liquidated.
Answer:
3 times
Explanation:
Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.
‘Ratio Analysis’ is used to analyze the performance of a company. It is used to analyze the liquidity, profitability, solvency and operational efficiency of the company.
Given:
Cost of goods sold = $255,000
Beginning inventory = $90,000
Ending inventory = $80,000
Inventory turnover is the ratio of cost of goods sold to inventory receivable.
It can be calculated as:
Average inventory =
Average inventory =
Average inventory =
Average inventory = $85,000
Inventory turnover ratio =
Inventory turnover ratio =
Inventory turnover ratio = 3 times
Answer:
a. dynamic resource capability.
Explanation:
A company's competence of performing a activity depends on various factors. It depends on the production whether producing in vast quantities or small quantities, quality of the product, its inventory and stock, delivery at time, timely rendering service. All the factors leads to the success of the performing a certain activity. If these points are not fully satisfied at time, customers will run to the rival companies for the product or service. So having a strong dynamic resource and also the man force to complete all the required activity at time is the main criteria for the success of the company.
Thus the answer is a. dynamic resource capability.
Answer:
The sales volume would be required to break even is $22,285
Explanation:
In order to calculate the sales volume would be required to break even we would have to calculate the following:
Breakeven sales = Fixed cost/contribution per unit
fixed costs are estimated at $1,170,000
contribution per unit=selling price per unit - variable cost per unit
selling price per unit=1.70*$75
selling price per unit=$127.50
Hence, contribution per unit=$127.50-$75
contribution per unit=$52.50
Therefore, Breakeven sales =$1,170,000/$52.50
Breakeven sales =$22,285