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3 years ago

The deprecation method that charges more expenses in earlier years than in later years is

2 answers:

4 0

Double-declining balance. Keep in mind there are three main ways to depreciate: straight-line, units of production, and double declining balance. Straight-line means depreciating the same amount every year. Units of production is based off your production levels for the year. Double declining means you depreciate more in earlier years (2 times your straight-line rate) and depreciate less in later years.

BigorU [14]3 years ago

4 0

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Suppose a company is financed with $20 million of equity and $60 million of debt. That is, the company obtained $20 million from

alexgriva [62]

Answer:

Existing Equity = 20 million

Existing debt = 60 million

Total capital = 20 million + 60 million = 80 million

a. Given company issued 30 million of equity to retire debt

Equity after raise = $20 million + $30 million = $50 million

Debt = $60 million - $30 million = $30 million

Total capital size remain at $80 million

Capital structure, Equity = $50 million/$80 million = 0.625 = 62.50%

Debt = (1-0.625) = 0.375 = 37.50%

b. The market would welcome the new issue as the risk of the firm would be reduced.

6 0

2 years ago

Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the seg

77julia77 [94]

Answer:

the amount of avoidable cost associated with the segment is $754,000

Explanation:

The cost associated with the segment to be eliminated including:

- Advertising expense $140,000

- Supervisory salaries $300,000

- Allocation of companywide facility-level costs $130,000

- The loss for unsold building (*): $60,000

- Maintenance costs on equipment $112,000

- Real estate taxes on building $12,000

The total cost is $754,000

(*) The earning from sold building (book value) = Market value of building $160,000 - Book value of building $100,000 = $60,000

3 0

3 years ago

Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they

nata0808 [166]

Answer:

The following summarizes the solution to the given problem.

Explanation:

The given values are:

Sales,

= $660,000

Expenses,

= $255,453

Received cash revenues,

= $605,934

(a)

According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.

⇒ $Net \ income=Sales-Expense$

On substituting the given values, we get

⇒ $=660,000-255,453$

⇒ $=404,547$ ($)

(b)

⇒ $Net \ Income =Received \ cash \ revenues-Expenses$

On substituting the given values, we get

⇒ $=605,934-255,453$

⇒ $=350,481$ ($)

(c)

The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status.
It accepts the profits throughout a similar time frame.

5 0

3 years ago

Younger employees also are more likely to use the Internet and social media to accomplish their tasks. This is an example of the

DaniilM [7]

Answer: Expectation and norms

Explanation: In simple words, expectation refers to the believe that something would happen in the future in a certain way. While norms refers to something that is standard and very probable ion nature.

It is automatically assumed that young employees will use more technology as their generation is the when where the technology gained its pace. Thus, the assumption in the statement shows expectations and norms.

5 0

3 years ago

The date on which the principal amount is repaid to the bondholder is known as the ________.

blagie [28]

The answer is “Bond Maturity Date”.

8 0

1 year ago