Answer:
Extend the useful life of an asset beyond its original estimate
Explanation:
An extraordinary repair is a major repair that is done to an asset that extends the asset's useful life beyond what was forecasted initially. In other words, an extraordinary repair is an overhaul or upgrade or hat makes an asset to last longer.
Extraordinary repairs are capitalized. This means that the cost of repair increases the asset's book value thereby increasing the depreciation expenses over the asset's revised remaining life.
Answer:
B) Assumes that delivery times are consistent.
Explanation:
Economic order quantity: It is used to calculate the appropriate amount of quantity to be ordered, EOQ has some assumptions and delivery time's consistency is one of those.
- <em>Delivery time consistency</em>: The time required to deliver the product will take the same time as it took in previous order.
Answer:
The weighted average cost of capital of Kelso's is 12.06%
Explanation:
The weighted average cost of capital (WACC) is a measure of the company's cost of capital in which each capital is weighted proportionally.
WACC is calculated by:
D/E = 0.62
E = 1
D = 0.62
V = 1.62
WACC =
WACC = (1/1.62)(0.163) + (0.62/1.62)(0.0521)
WACC = 0.1206, or 12.06%
Answer:
The price the seller receives for the product after the tax is imposed on the buyer is $2. Seller pay tax from new eq price to the old one.
Explanation:
Answer:
<em>Net cash flow=$25000</em>
Explanation:
<em>The net cash flow from financing activities includes that entails any or a combination of the following; issuance and redemption of stocks , issuance and redemption of debts and payment of interest and/or dividend, and receipt of dividend and or interest.</em>
<em>The net cash flows= 50,000 -10,000 -15,000 = $25000</em>
<em>Kindly note that the purchase of plants assets is not a financing activity but investment</em>