Answer:
4.67 years.
Explanation:
PB = Years before cost recovery + (Remaining cost to recover ÷ Cash flow during the year)
= 4 + ($2,000 / $3,000)
= 4.67 years.
Answer:
$710,000
Explanation:
The computation of the owner’s equity at the end of the year is given below:
We know that
Accounting equation equals to
Total assets = Total liabilities + owners equity
where,
Total assets = $800,000 + $150,000 = $950,000
And, the total liabilities = $300,000 - $60,000 = $240,000
So, the owners equity at the end of the year would be
= $950,000 - $240,000
= $710,000
Answer:
Assets Liabilities Stockholder's Equity
1. Authorizing and issuing Not affect Not affect Not affect
stock certificates in a
stock split
2. Declaring a stock Not affect Not affect Not affect
dividend
3. Issuing stock certificates Not affect Not affect Not affect
for the stock dividend
declared in (2)
4. Declaring a cash dividend Not affect Increase Decrease
5. Paying the cash dividend Decrease Decrease Not affect
declared in (4)
Answer:
The economic savings for purchasing the Janome 15 model = $3000
Explanation:
<u><em>Step 1: Calculate Total cost of purchasing Janome 12 model</em></u>
Retail cost = 10000
Lifetime maintenance = 500
Operating expenses = 1500 × 5 = 7500
Total cost = 18000
<u><em>Step 2: Calculate total cost and benefit of Janome 15</em></u>
Retail cost = 12000
Lifetime maintenance = 500
Operating expenses = 1500 × 5 = 7500
total cost = 20,000
Calculate benefits of Janome 15
increase in productivity = 500 × 5 = 2500
reduction in operating expenses = 500 × 5 = 2500
total benefit = 5000
<u><em>Step 3: Calculate net cost of Janome 15 </em></u>
net cost = total cost - total benefit
= 20,000 - 5000
= 15000
<u><em>Step 4: Calculate net benefit of buying Janome 15 </em></u>
18000 - 15000 = 3000
