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3 years ago

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Cheetah Copy purchased a new copy machine. The new machine cost $140,000 including installation. The company estimates the equip

ment will have a residual value of $35,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 1 3,000 2 2,000 3 2,000 4 2,000 Required: 1. Prepare a depreciation schedule for four years using the straight-line method.

1 answer:

vodomira [7]3 years ago

8 0

Answer:

Depreciation Expense for year 1 = $26,250

Depreciation Expense for year 2 = $26,250

Depreciation Expense for year 3 = $26,250

Depreciation Expense for year 4 = $26,250

Explanation:

Cheetah Cop use the straight-line method depreciation, Depreciation Expense each year is calculated by following formula:

Annual Depreciation Expense = (Cost of machine − Residual Value )/Useful Life = ($140,000 - $35,000)/4 = $105,000/4 = $26,250

Depreciation Expense for year 1 = $26,250

Depreciation Expense for year 2 = $26,250

Depreciation Expense for year 3 = $26,250

Depreciation Expense for year 4 = $26,250

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Cox Co. accounts for its inventory using the LIFO cost method. An inventory loss from a permanent market decline of $360,000 occ

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Answer:

$360,000

Explanation:

Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.

An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.

The loss reported in May will be reported for that quarter in June.

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At the end of the next four years, a new machine is expected to generate net cash flows of $8,000, $12,000, $10,000, and $15,000

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I would say alot of money

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3 years ago

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below:1st Quarter 2nd Quarter 3rd Quarter 4t

saw5 [17]

Answer:

Total cost= $392,500

Explanation:

Giving the following information:

1st Quarter= 24,000 units

2nd Quarter= 25,000

3rd Quarter= 21,000

4th Quarter= 22,000

The company's variable selling and administrative expense per unit is $2.30.

Fixed selling and administrative expenses include advertising expenses of $9,000 per quarter, executive salaries of $44,000 per quarter. Also, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $8,600 will be paid in the second quarter.

We will assume that insurance and taxes are for offices and properties of the selling and administrative department.

1st quarter:

Variable cost= 2.3*24,000= 55,200

Fixed expense= 9,000 + 44,000= 53,000

Insurance= 4,000

Total= $112,200

2nd quarter:

Variable cost= 2.3*25,000= 57,500

Fixed expense= 9,000 + 44,000= 53,000

Property taxes= 8,600

Total= $71,400

3rd quarter:

Variable cost= 2.3*21,000= 48,300

Fixed expense= 9,000 + 44,000= 53,000

Insurance= 4,000

Total= $105,300

4th quarter:

Variable cost= 2.3*22,000= 50,600

Fixed expense= 9,000 + 44,000= 53,000

Total= $103,600

Total cost= $392,500

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3 years ago

The shareholders’ equity of Tru Corporation includes $540,000 of $1 par common stock and $1,140,000 par of 7% cumulative preferr

Dmitry_Shevchenko [17]

Answer:

$12,600

Explanation:

Annual Dividend to preferred stock = $1,140,000 × 7%

= $79,800

A schedule of preferred stock dividend in Arrears is as follows :

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2016 $79,800 $54,000 $25,800

2017 $79,800 $54,000 $51,600

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Principle : Preference dividends (and their arrears if cumulative) are paid first before dividends distribution to common stock holders.

Common Stock Holders receive the remaining amount of dividends of $12,600 ($144,000 - $131,400)

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Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashio

horrorfan [7]

Answer:

A) Increase $137,500

Explanation:

Calculation for how will operating income be affected

CHANGE IN OPERATING INCOME

Sales Revenue (Additional) $850,000

(250 %* 340,000)

Less Variable expenses (Additional) ($587,500)

(250 % *$ 235,000)

Contribution Margin $ 262,500

($850,000-$587,500)

Less Fixed Expenses ($76,000)

($262,500-$76,000)

Operating Income $ 186,500

( $ 262,500-$76,000)

Less Previous Operating Income ($49,000)

Operating Income $137,500 Increase

($ 186,500-$49,000)

Therefore the operating income will increase by $137,500

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