Answer:
Accumulated depreciation= $276,000
Explanation:
Giving the following information:
On January 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years. The estimated residual value is $ 10,000.
Depreciable value= 700,000 - 10,000= 690,000
Straight-line depreciation= 690,000/5= $138,000
Accumulated depreciation= 138,000*2= $276,000
Answer:
The ramp on a railway station has a rough surface to increase friction so that we do not slip while walking on it. If the surface is smooth, then the frictional force between the ramp and the feet becomes less and the chances of slipping are greater
Enhancing, Retaining, Satisfying and Attracting.
Answer: 5.52%
Explanation:
Given the following :
Face value (f) = $1000
Bond price(p) = 96% of face value = 0.96 × 1000 = $960
Coupon rate = 5% Semi-annually = 0.05/2 = 0.025
Payment per period (C) = 0.025 × 1000 = $25
Period(n) = 10 years = 10 × 2 = 20
Semiannual Yield to maturity = [(((f-p)/n) + C) / (f + p)/2]
Semiannual YTM = [(((1000 - 960) / 20) + 25) / (1000 + 960)/2]
Semiannual Yield to maturity = [(((40 /20) + 25) / 1960/2]
= (2 + 25) / 980
= 27 / 980 = 0.02755 = 2.755% = 2.76%
Pretax cost of debt = Yield to maturity = 2 × Semiannual yield to maturity
Pretax cost of debt = 2 × 2.76% = 5.52%
Answer:
$217.668
Explanation:
The computation of net income is shown below:-
ROE = Profit Margin × Total Asset Turnover × Equity Multiplier (Assets ÷ Equity)
ROE = (Profit Margin) × (Sales ÷ Total Assets) × (1 + Debt-Equity ratio)
16% = Profit margin × ($4,400 ÷ $2,985) × ( 1 + 1.20)
16% = Profit margin × 1.47 × 2.20
16% = Profit margin × 3.234
Profit margin = 16% ÷ 3.234
= 0.04947
Now as we know that
Profit margin = Net income ÷ Sales
0.04947 = net income ÷ $4,400
net income is
= $4,400 × 0.04947
= $217.668
