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3 years ago

Belltone Company made the following expenditures related to its 10-year-old manufacturing facility:

Business

1 answer:

solong [7]3 years ago

5 0

Answer:

Acc dep - manufacturing facility 205,000 debit

Cash 205,000 credit

--to record cost heating system--

Wing 780,000 debit

Cash 780,000 credit

--to reocrd addition of a new wing--

maintenance expense 15,500 debit

cash 15,500 credit

--to record maintenance expense for the period

Assembly line 42,000 debit

Cash 42,000 credit

--to record new assembly line--

Explanation:

1.- the improvements will decrease the accumulated depreciation

2.- The wing will be considered a new asset and depreciate separately

3.- the maintenance cost is cost of the period as it do not upgrade or change the productivity is a cost to maintain the current level.

4.- the assembly line will be reocgnize as an asset as increase the productive capaictive of the plant

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Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. The com

solong [7]

Answer:

4 years

Explanation:

Payback period is the time in which a project returns back the initial investment in the form of net cash flow.

Initial Investment = $280,000

Net Income = $20,000

To calculate the net cash flows add bask the depreciation expense in Net income each year.

Depreciation = ($280,000 - $30,000) / 5 = $50,000

Net Cash Flow = $20,000 + $50,000 = $70,000

Payback period = Initial Investment / yearly cash flow = $280,000 / $70,000 = 4 years

5 0

3 years ago

What is market penetration

nalin [4]

Answer:

the extent to which a product is recognized and bought by customers in a particular market.

4 0

3 years ago

The significant increase in consumer demand following World War II marked the beginning of the:

Tom [10]

Answer:

b. marketing concept era.

This era existed from 60's to 90's. And was called the 'baby boomer era'. This era was focused on satisfy the client and producing goods and services.

And in order to satisfy this they use strategies of marketing in order to attract the customers.

Explanation:

a. production era.

False. This era was from 1860-1920 since this era occurs during the Industrial revolution and not at the beginning of the second world war.

b. marketing concept era.

Correct. This era existed from 60's to 90's. And was called the 'baby boomer era'. This era was focused on satisfy the client and producing goods and services.

And in order to satisfy this they use strategies of marketing in order to attract the customers.

c. customer relationship era.

False. This era was from 1990-2010 and was focused in create long-term relationships. So then is not the correct option if we analyze the historical time.

d. selling era.

This era was from 1920 and 1940 and not correspond to the begin of the second world war so this one is not the correct option.

6 0

2 years ago

Read 2 more answers

Leno Company sells goods to the Fallon Company for $10,000. It offers credit terms of 2/10, n/30. If Fallon Company pays the i

Zinaida [17]

Answer:

Leno Company will record a debit to Cash in the amount of: D. $9,800

Explanation:

The terms of 2/10, n/30 means 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

Fallon Company pays the invoice within the discount period - early enough to receive a 2% discount. The discount amount is 2% x $10,000 = $200.

On the other hand, Leno Company has to offer a 2% discount to Fallon Company. Cash amount Leno Company receives = $10,000 - 2% x $10,000 = $9,800

Leno Company will record a debit to Cash in the amount of $9,800

6 0

3 years ago

The most recent data from the annual balance sheets of Free Spirit Industries Corporation and LeBron Sports Equipment Corporatio

shutvik [7]

Answer:

Free Spirit Industries Corporation and LeBron Sports Equipment Corporation

1a. Free Spirit Industries Corporation’s current ratio is , and its quick ratio is 1.3337 : 1 and 0.7469 : 1 respectively.

1b. LeBron Sports Equipment Corporation’s current ratio is , and its quick ratio is 1.6596 : 1 and 0.9294 : 1 respectively.

2. True: Free Spirit Industries Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than LeBron Sports Equipment Corporation.

3. True: A current ratio of 1 indicates that the book value of the company’s current assets is equal to the book value of its current liabilities.

4. True: An increase in the current ratio over time always means that the company’s liquidity position is improving.

Explanation:

a) Data:

Balance Sheet December 31st (Millions of dollars)

LeBron Sports Equipment Corporation Free Spirit Industries Corporation

LeBron Free Spirit LeBron Free Spirit

Assets Liabilities

Current assets Current liabilities

Cash $1,435 $922 Accounts payable $0 $0

Accounts receivable 525 338 Accruals 316 0

Inventories 1,540 990 Notes payable 1,793 1,687

Total current assets $3,500 $2,250 Total current liabilities $2,109$1,687

Net fixed assets Long-term bond 2,578 2,063

Net plant & equipment 2,750 2,750 Total debt $4,687 $3,750

Common equity

Common stock $1,016 $813

Retained earnings 547 437

Total common equity $1,563 $1,250

Total assets $6,250 $5,000 Total liabilities and equity$6,250 $5,000

b) Current Ratio and Quick Ratio:

Current Ratio = Current Assets/Current Liabilities

Quick Ratio = (Current Assets - Inventory)/Current Liabilities

1a. Free Spirit Industries Corporation’s current ratio is , and its quick ratio is

Current Ratio = $2,250 / $1,687 = 1.3337 : 1

Quick Ratio = ($2,250 - 990) / $1,687 = 0.7469 : 1

1b. LeBron Sports Equipment Corporation’s current ratio is , and its quick ratio is:

Current Ratio = $3,500 / $2,109 = 1.6596 : 1

Quick Ratio = $3,500 -1,540 / $2,109 = 0.9294 : 1

5 0

3 years ago