Answer:
$57,000
Explanation:
<u><em>Step 1 : Depreciation Rate</em></u>
Depreciation Rate = (Cost - Residual Value) ÷ Estimated Production
therefore,
Depreciation Rate = $14.00 per machine hour
<u><em>Step 2 : Depreciation expenses</em></u>
Depreciation expense = Depreciation Rate x Annual production
therefore
Year 1 = $42,000
Year 2 = $56,000
Year 3 = $70,000
Total = $168,000
<em><u>Step 3 : Book Value</u></em>
Book Value = Cost - Accumulated Depreciation
= $225,000 - $168,000
= $57,000
Conclusion :
book value at the end of year 3 is $57,000
Answer:
Net Increase in cash = $124,200
Explanation:
Note: The correct value for Year 2021 inventory is $510,300 not $10,300.
Also note: See the attached excel file for the statement of cash flows for 2022.
In the attached excel file, the following workings are used:
Workings:
w.1: Increase in accounts receivable = Account receivable in 2022 - Account receivable in 2021 = $237,600 - $205,200 = $32,400
w.2: Decrease in inventory = Inventory in 2022 - Inventory in 2021 = $450,900 - $510,300 = -$59,400
w.3: Decrease in accounts payable = Accounts receivable 2022 - Accounts receivable 2021 = $105,300 - $116,100 = -$10,800
w.4: Disposal of land = Land in 2021 - Land in 2022 = $270,000 - $216,000 = $54,000
w.5: Purchase of equipment = Equipment in 2022 - Equipment in 2021 = $702,000 - $540,000 = $162,000
Answer: Modified product strategy
Explanation:
The modifying product strategy is one of the important strategy in the market as it basically refers to the value adding information and also modification in the existing products.
- The modified product strategy also known as the product life cycle where the existing products are get modified according to the new product strategy.
- By adding various types of features and also improve the performance of the product then it known as the product modification.
Therefore, the modified product strategy are used by the company for producing various types of new products and their aim is to produce the new product in the given original target in the market.
Answer:
The correct answer is A) $2.800
Explanation:
Using the straight-line method to depreciate, the calculation to find the depreciation tax shield is the following:
- Finding the depreciable cost:
- Finding the depreciation per year:
- Finally, the depreciation tax shield for 2018:
Answer:
Applet's flexible budget variance for total costs is $5,140 unfavorable variance since actual is higher than budgeted cost
Explanation:
Flexible budget variance for total costs=actual total costs-budgeted total costs of 72 connectors
actual total costs of 72 connectors=$19,000
budgeted total costs of 72 connectors=budgeted fixed cost+budgeted total variable cost of 72 connectors
total budgeted variable cost=72*$130=$ 9,360.00
budgeted fixed cost is $4,500
Budgeted total costs of 72 connectors=$9,360.00+$4,500.00=$ 13,860.00
Flexible budget variance =$ 13,860.00-$19,000.00=$5140 unfavorable variance
