1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Roman55 [17]
3 years ago
5

Hartong Corporation is contemplating purchasing equipment that would increase sales revenues by $185,000 per year and cash opera

ting expenses by $89,000 per year. The equipment would cost $416,000 and have a 8 year life with no salvage value. The annual depreciation would be $52,000. The simple rate of return on the investment is closest to:A. 23.8%B. 12.5%C. 10.6%D. 23.1%
Business
1 answer:
krek1111 [17]3 years ago
8 0

Answer:

The simple rate of return on the investment is closest to: C. 10.6%

Explanation:

In Hartong Corporation:

Increasing net income = Increase sales revenues - Cash operating expenses - Annual depreciation expense = $185,000 - $89,000 - $52,000 = $44,000

This is the net income from the equipment per year

Return on the investment (ROI) is calculated by using following formula:

ROI = (Net income/Cost of investment )x 100%

Cost of investment  = Cost of equipment = $416,000

ROI = ($44,000/$416,000) x 100% = 10.6%

You might be interested in
"Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growt
ladessa [460]

Solution:

D_{0} = $3.10, D_{1} - D_{3}= 20%, D_{4} += 5%, R = 11%

D_{1} = $3.10 • (1 + .20) = $3.10 • 1.20 = $3.720

D_{2} = $3.10 • (1 + .20)^{2} = $3.10 • 1.44 = $4.464

D_{3} = $3.10 • (1 + .20)^{3}= $3.10 • 1.728 = $5.357

D_{4} = $5.357 • (1 + 05) = $5.624

P_{3} = D_{4} / (R – g)= $5.624 / 0.06= $93.744

P_{0} = D_{1}  +  D_{2} + D_{3} + P_{3} =(1 + R) (1 + R) ^{2} (1 + R)^{3}

= $3.720 + $4.464 + $5.357 + $93.744

=  (1 + .11) (1 + .11)2(1 + .11)3= $3.720 + $4.464 + $99.101

=(1.11) (1.11)2(1.11)3= $3.720 + $4.464 + $99.101

=1.11 1.232 1.368= $3.351 + $3.623 + $72.462 = $79.44

4 0
3 years ago
Explain whether each of these individuals will be counted as a part of the labor force. Alex has not responded to interview requ
Anvisha [2.4K]

Answer:

Alex is part of the labor force, John is also part of the labor force.

Explanation:

The labor force includes all those that are currently employed and those that are unemployed but searching for a job. The labor force does not consider the unemployed that are not searching for jobs.

With this understanding, Alex is part of the labor force because he applied to be a realtor. This indicates that even though he is currently unemployed and has not responded to interview requests from banks, he is interested in working as a realtor.

John is also considered to be part of the labor force, the only difference here is that he is now working part-time at the library, whereas, he worked as a full-time teacher.

Therefore, both Alex and John are part of the labor force

8 0
3 years ago
In 2002, Australia's highest court ruled on a defamation case in which an Australian citizen claimed to have been defamed by a D
Orlov [11]

Answer:

C) and publication of the article occurred when the article appeared and could be read on a user's computer screen, establishing jurisdiction in Australia.

Explanation:

The internet has made legal matters complicated for businesses that try to claim that there is no jurisdiction. Before, there was no way that a court would have taken the case because a newspaper or magazine is generally sold locally or domestically only. Even international editions varied from local editions, but now things have changed. It only takes one sale from a company in another state, for that state's court to have jurisdiction because the company was actively serving customers there. The world has become much smaller now.

7 0
3 years ago
Cross Corp. had outstanding 2,000 shares of 11% preferred stock, $50 par. On August 8, 1992, Cross redeemed and retired 25% of t
Nostrana [21]

Answer:

C. ($2,500) $25,000

Explanation:

The computation is shown below:

The Preferred stock should be debited with $25,000 and the net effect on additional paid in capital is $2,500 credit i.e. ($25,000 - $2,500)

So,  

Preferred stock $25,000

And, Additional paid in capital ($2,500)

Therefore the option c is correct

And, the same is relevant

5 0
3 years ago
On December 18, Intel receives $259,000 from a customer toward a cash sale of $2.59 million for computer chips to be completed o
UNO [17]

Answer:

Date        General Journal              Debit        Credit

<em>Dec. 18</em>    Cash                                $259,000

               Unearned revenue                                 $259,000

(To record advance receipt of cash)

<em>Jan. 23</em>    Cash (2590000 - 259000) $2,331,000  

               Unearned revenue         $259,000  

               Sales revenue                                   $2,590,000

(To record cash sale)

<em>Jan. 23</em> Cost of goods sold         $1,590,000  

               Inventory                                          $1,590,000

(To record cost of goods sold)  

6 0
3 years ago
Other questions:
  • Which of the following statements about quality information is true
    14·1 answer
  • A testimonial ad for a First Alert carbon monoxide (CO) detector features parents who are discussing the dangers of carbon monox
    11·1 answer
  • On January 2, 2017, Coronado Corporation issued 31000 shares of 5% cumulative preferred stock at $100 par value. On December 31,
    6·1 answer
  • Analyzing income distribution would include all of the following EXCEPTa. the purchasing power of various age groups.b. the disc
    11·1 answer
  • The latest demand equation for your Banjos Rock T-shirts is given by q = −30x + 7200 where q is the number of shirts you can sel
    7·1 answer
  • Other things the same, if the expected return on U.S. assets increased (e.g. higher interest rate), the a. supply of dollars in
    8·1 answer
  • Marketing to people based on their lifestyle is called
    9·1 answer
  • Shmenson Company uses the periodic inventory system. Sales for 2020 were $470,000 while operating expenses were $175,000. Beginn
    9·1 answer
  • Question 1 of 10
    7·1 answer
  • the purpose of tracing a sample of inventory tags to a client's computerized listing of inventory items is to determine whether
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!