How is share in profit of outgoing partner calculated when he retires during the accounting year

Wildhorse, Inc., a resort management company, is refurbishing one of its hotels at a cost of $6,336,382. Management expects that

Xelga [282]

Answer and Explanation:

The computation of the IRR is shown below:

Year Particulars Amount (in $)

0 Initial cost -6,336,382

1 Year 1 cash inflows 1,460,000

2 Year 2 cash inflows 1,460,000

3 Year 3 cash inflows 1,460,000

4 year 4 cash inflows 1,460000

5 Year 5 cash inflows 1,460,000

6 Year 6 cash inflows 1,460,000

IRR 10.12%

Perform the IRR formula i.e.

= IRR() in excel

Now the net present value is

= Present value of cash inflows - initial investment

= ($1,460,000 × 4.1114) - $6,336,382

= $6,002,644 - $6,336,382

= -$333,738

The 4.1114 is the PVIFA factor of 6 years at 12%

hence, the Wildhorse should not go ahead with the project

5 0

3 years ago

Problem 5-3A Record transactions related to accounts receivable (LO5-3, 5-4, 5-5) [The following information applies to the ques

konstantin123 [22]

Answer:

JOURNAL ENTRIES related Accounts Receivables

2021

12 June Debit Accounts receivable $37,400 Credit Service Revenue $37,400

17 Sep Debit Bank $22,000 Credit Accounts receivables $22,000

31 Dec Debit provision for doubtful debts adjustment (expense) $6,930 Credit Provision for bad debts $6930

2022

4 Mar Debit Accounts receivable $ 52400, Credit Service revenue $52,400

20 May Debit Bank $10,000 Credit Accounts receivables $10,000

19 Oct Debit Bank $42000 Credit Accounts receivables $42,000

31 Dec Provision for bad debts adjustment $180 Credit provision for bad debt $180

Explanation:

2021

provision for bad debts beginning = $0

adjustment = $6930

closing (15400 *0.45) =$6930

an increase in provision or allowance in doubtful debts is an expense

2022

Provision for bad debts opening $6930

Adjustment $180

closing (15800*0.45) $7110

8 0

3 years ago

In which of the following situations could a research analyst use multiple regression? A real estate development company wants t

rjkz [21]

Answer:

A). A real estate development company wants to estimate the probable sales of construction services on the basis of marriage rates, population movement in the region, and interest rates on construction loans.

Explanation:

Multiple regression is elucidated as the statistical technique employed to determine the association between two or more dependent or response and independent/explanatory variables.

As per the question, the multiple regression can be employed in the first situation where 'a real estate company wishes to forecast the probable sales of construction on the basis of....loans.' Multiple regression analysis would help in representing the linear relationship between these two variables that helps in ensuring effective analysis and making predictions and ensuring optimum output. Thus, option A is the correct answer.

5 0

4 years ago

A trust is a legal document that explains how a person wishes his property to be transferred.

Kaylis [27]

This is TRUEEEEEEEEEEE

6 0

4 years ago

Read 2 more answers

Refer to the information for Alfombra Inc. below.

Ann [662]

Answer:

cost to be accounted for:

beginning cost: 180,000

added cost 756,000

total cost 936,000

cost accounted for:

ending WIP 30,000 x 5.2 = 156,000

trasnsferred-out: 150,000 x 5.2 = 780,000

total cost accounted for 936,000

Explanation:

150,000 completed

50,000 at 60%

weighted average equivalent unit:

complete + percetage of completion ending WIP

150,000 + 50,000 x 60% = 180,000

Cost per unit:

936,000 / 180,000 = 5.2 dollar per unit

we should match the total cost pool with the ending WIP and trasnferred out units

4 0

3 years ago