Answer:
The correct answer is Double-declining-balance. The highest net income in year 2 is 6000.
This higher net income don´t mean the machine was used more efficiently under this depreciation method.
Explanation:
In the file attached you will find a depreciation schedule for each of the alternative methods.
Each method need different calculus.
Straight-line
depreciation expense=(Original Value -Residual Value)/Useful life=
depreciation expense=4400
Units-of-production
estimated productive life 10000
Units of Production Rate=(Original Value -Residual Value)/estimated productive life=2,2
Double-declining-balance.
Depreciation rate = 1/useful life *100= 20,00%
Answer:
e. Minimize the weighted average cost of capital (WACC)
Explanation:
A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.
B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.
C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.
D: It is out of question because target capital structure cannot obtain the bond rating.
E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.
Answer:
rise, fall
Explanation:
Money supply refers to the total value of money in the form of currency and other liquid instruments available in an economy.
It includes cash, coins, and other near money substitutes.
Money supply is measured as it influences various activities taking place all around us in the economy.
A larger money supply leads to <u>fall</u> in interest rates. As a result, the prices of those short-term financial assets will <u>rises.</u> Conversely, smaller money supplies leads to rise in interest rates which in turn leads to fall in prices of the short-term financial assets.
Answer:
- Materials - 100,400
- Conversion - 95,600
Explanation:
Equivalent Units = Units Completed and Transferred out + Ending Work in Progress.
Materials Equivalent Units
Ending Work in Progress = 90% * 16,000
= 14,400 units
Equivalent Units = 86,000 + 14,400
= 100,400 units
Conversion Equivalent Units
Ending Work in Progress = 60% * 16,000
= 9,600 units
Equivalent Units = 86,000 + 9,600
= 95,600 units
Answer:
After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800
Explanation:
For calculation, following things need to be considered which is shown below:
1. Product A process costing = Pounds × Per pound price
= 34,000 × $8
= $272,000
2. Product A costing after selling = Pounds × sale price per pound
= 34,000 × $14
= $476,000
3. Difference of costing :
= Product A costing after selling - Product A process costing
= $476,000 - $272,000
= $204,000
4. Invested amount = $227,800
5. Actual Difference = Invested amount - costing difference
= $227,800 - $204,000
= $23,800
After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800
