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Alenkasestr [34]
2 years ago
11

Baker's Supply imposes a payback cutoff of 3.5 years for its international investment projects. If the company has the following

two projects available, which project(s), if either, should it accept? Year Cash Flow (A) Cash Flow (B) 0 −$ 62,000 −$ 26,000 1 7,100 15,600 2 9,800 8,400 3 28,700 1,900 4 45,900 1,100
Business
1 answer:
sweet-ann [11.9K]2 years ago
7 0

Answer:

Both projects fall within the acceptable payback period, so, both projects can be accepted.

Explanation:

Cash payback period measures how long it takes for the amount invested in a project to be recovered from the cumulative cash flows.

Pay back period For project A:

Amount invested in the project = −$ 62,000

Amount recovered in year 1 = −$ 62,000 + 7,100 = $-54,900

Amount recovered in year 2 = $-54,900 + 9,800 = $-45,100

Amount recovered in year 3 = $-45,100 + 28,700 = $-16,400

Amount recovered in year 4 = $-16,400 + 45,900 = $29,500

The amount is recovered In 3 years + 16400 / 45900 = 3.36 years

Cash payback period for project B:

Amount invested in the project = −$ 26,000

Amount recovered in year 1 = −$ 26,000 + 15,600 = $-10,400

Amount recovered in year 2 = $-10,400 + 8,400 = $-2000

Amount recovered in year 3 = $-2000 + 1,900 = $-100

Amount recovered in year 4 = $-100 + 1,100 = $1000

The amount invested is recovered In 3 years + 100/1,100 = 3.09 years.

Both projects fall within the acceptable payback period, so, both projects can be accepted.

I hope my answer helps you

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3 years ago
Based on the Information that follows, prepare the cost of goods sold section of a multiple-step income statement.
Shtirlitz [24]

Answer:

Cost of goods sold = $105,060

Explanation:

a) Data and Calculations:

Cost of goods sold section of the multi-step income statement:

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Purchases Discounts                                       (2,040)

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Answer:

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The introduction of accounting software such as QuickBooks has transformed the working for accounting professionals. The conventional accounting system replacement has made the job more comfortable. However, there are new challenges added, such as learning the software, making error-free inputs, and pace of computer-related entries. However, considering that once these skills are learned, the overall job is easier than before.

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3. Adjusted entries need to manual input in conventional method to create the adjusted trial balance whereas, in software, its added through adjusting journal entries.

4. Financial statements are much more straightforward in software as they are available on one click, whereas in manual accounting, they are required to be calculated.

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