Answer:
$90,500
Explanation:
The computation of initial cash outlay is shown below:-
initial cash outlay = New machine cost + Increase in working capital - After tax salvage value
= $145,000 + $12,000 - (($75,000 - ($75,000 - $50,000) × 0.34
= $145,000 + $12,000 - $66,500
= $90,500
Therefore for computing the initial cash outlay we simply applied the above formula.
Answer:
Decentralization
Explanation:
It is a Process of dispersing decision-making governance. Transfer of decision-making power and assignment of accountability and responsibility for results.
Answer:
Dr Cash 1,500
Dr Cash short and over 9
Cr Sales revenue 1,509
Explanation:
Cash short and over is used to adjust any small amount of cash missing after physically counting the cash. It is also used when there is a small amount of extra cash , for example, instead of $1,509, you would have received $1,512. The function of this account is to adjust and balance the transaction.
Answer:
The Tax is a lump-sum which means that it does not change by output. It is therefore a fixed cost.
Average Fixed Cost ⇒ INCREASE
The new tax would increase the fixed costs which would lead to an increase in the average fixed costs.
Average Variable Cost ⇒ UNCHANGED
The tax is a fixed cost not a variable cost which means variable costs will not be affected.
Average Total cost ⇒ INCREASE
Fixed costs is a part of total cost and if that increases, the total cost will have to increase as well.
Marginal Cost ⇒ UNCHANGED
As the cost that changed is a fixed cost, the total cost will not change as a result of more production so marginal cost will not change.
They had $8,000 worth of merchandise at the beginning of the year
