Answer:
Annual depreciation= $197,000
Explanation:
Giving the following information:
Purchasing price= $1,040,000
Residual value= $55,000
Useful life in years= 5
<u>Under the straight-line method, the annual depreciation is the same during the useful life of the machine. To calculate the annual depreciation, we need to use the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (1,040,000 - 55,000)/5= $197,000
Answer:
Current ratio = 4.04
Explanation:
Current ratio measures the ability of a business to settle its short term obligations using its liquid financial resources (current assets)
<em>A current ratio in excess of 2 is considered as adequate (except for some special occasions) and vice versa</em>.
Current ratio is computed as follows:
Current ratio = current assets/current liabilities
Applying this we have
$
Cash 102
Receivable 94
Inventory 182
Other current assets <u> 18</u>
<em>Total current assets 396
</em>
<em><u>To</u></em><em>tal current liability 98</em>
Current ratio= Total current assets / T<u>o</u>tal current liability
Current ratio = 396/98= 4.04:1
Current ratio = 4.04
Answer:
So then the best answer for this case would be:
a. 13.6 minutes
Explanation:
For this case we have the following data for the response rates:
17,12,9,16,14
And we want to calculate the mean response time for 911 calls in this village.
And for this case we use we can use the definition of sample mean given by:
Where n = 5 represent the sample size for this case. If we replace we got:
So then the best answer for this case would be:
a. 13.6 minutes
The sample mean is an estimator unbiased of the population mean because:
For this reason is a good statistic if we want to see central tendency in a group of values.
Answer:
The journal entry for Rasheed company on April 1,2020 will be:
Account title Dr Cr
Cash 192,000
Finance charge 8,000
Notes payable 200,000
Finance charge = $400,000 x 2% = 8,000
Notes Payable = 200,000
Cash = 200,000 - 8,000 = 192,000
Answer:
a. When the equipment is sold.
Explanation:
As we know that
When someone sells or purchase a product, the services are attached to the product which is passed from the buyer to the seller that can be in terms of warranty i.e after-sales services, etc
So according to the given situation, the estimation of the warranty cost is $25 per time sold so the warranty cost should be recognized when the equipment is sold as it is attached to the product
