Answer:
a.
$207,000
b.
Year 1: $57,600
Year 2: $67,200
Year 3: $30,000
Explanation:
a.
Calculate the initial outlay of the project at year 0 as follow
Initial Outlay = Base Price + Modification cost + Working Capital requirement
Initial Outlay = $160,000 + $40,000 + $7,000
Initial Outlay = $207,000
b.
The working for the calculation of the cash flow is attached with this answer, please refer to the attached file.
If Power industries has acquired a patent for $16,000. its useful life is expected to be four years. The yearly journal entry to recognize periodic amortization is: Debit Amortization Expense - Patents $4,000; Credit Patents $4,000.
<h3>Journal entry </h3>
If the company has acquired a patent for the amount of $16,000 in which the useful life is expected to be four years. The appropriate journal entry to recognize periodic amortization is:
Power industries journal entry
Debit Amortization Expense - Patents $4,000
Credit Patents $4,000
($16,000/4 years)
(To record periodic amortization recognized)
Therefore the yearly journal entry to recognize periodic amortization is: Debit Amortization Expense - Patents $4,000; Credit Patents $4,000.
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Answer:
Explanation:
If the overall increase in net assets remains the same at $154,000 then the program revenues and expenses were not included in the final figures for the government-wide financial statements. These two items were presented individually but should have blended with the total amount.
If these two figures were combined with the overall increase in net assets, the new figure would surmount to $137,600. This causes a decrease of $16,400 in net assets.
Net Assets = 154,000 + 47,600 – 64,000 = $137,600
Decrease amount = 154,000 – 137,600 = $16,400
Answer:
b. False
Explanation:
Adhocracy refers to a form of organizational culture characterized by quick adaptation and flexibility in approach.
Such culture takes into perspective adaptive or impromptu action in a dynamic business environment.
In the given case, the employee prefers a strict culture, without taking into account external environment and with little flexibility. Also the company is willing to assume risks.
Thus, the given scenario does not correspond to Adhocracy culture.