1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jeyben [28]
3 years ago
7

Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the com

pany to reduce the amount of part-time help needed, at a cost savings of $5,200 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 2,000 dozen more donuts each year. The company realizes a contribution margin of $2.40 per dozen donuts sold. The new machine would have a six-year useful life.
What would be the total annual cash inflows associated with the new machine for capital budgeting purposes?

a. Annual Savings in Part time Help:
b. Added Contribution Margin from expanded sales:
c. Annual cash inflows:
Business
1 answer:
Komok [63]3 years ago
5 0

<u>Solution and Explanation:</u>

<u> Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:

=\$ 5200+(2000 * \$ 2.40 \text { per dozen })

=$10000

<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                2  10000

               3  10000

                4  10000

               5  10000

              6  10000

IRR   13%

=13% using IRR function in excel.

<u>Answer:3</u> IRR=17%

with salvage value

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                 2  10000

                3  10000

               4  10000

                5  10000

              6  22000

IRR   17%

using IRR function in excel.

You might be interested in
Consider the following three scenarios:
telo118 [61]

Answer:

(C) II, III only

Explanation:

I. the date the service was performed is on June 1st, Therefore revenue will be recoganized on June 1st.

II. Melly Corp received advance payment for raw material to be delivered to Drake Inc. in 6 month, Therefore revenue cannot be recognized on June 1st.

III. Lodo, LLC collected cash on June 1st for service rendered on May 1st. Therefore revenue will not be recoganized on june 1st

The revenue that cannot be recognized on June 1st for II and III case.

3 0
3 years ago
Discretionary fiscal policy is defined as fiscal policy Group of answer choices initiated by a Presidential proclamation. left t
Galina-37 [17]

Discretionary fiscal policy is defined as fiscal policy triggered by the state of the economy.

<h3>What is discretionary fiscal policy?</h3>

This refers to the decision of the federal government to increase or decrease taxes. Here, the changes in taxes are subject to the president and congress approval.

Hence, discretionary fiscal policy is defined as fiscal policy triggered by the state of the economy.

Learn more about discretionary fiscal policy here: brainly.com/question/6483847

#SPJ1

4 0
2 years ago
Enter mia profit/loss for the 2 month
Tems11 [23]
She profits more each month
8 0
3 years ago
Tax laws permit installment sales, which are recognized in the year of sale for financial reporting purposes, to be reported in
Lera25 [3.4K]

Answer:

lower; higher.

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The different types of tax include the following;

1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.

2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.

3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.

Generally, installment sales are permitted or allowed by the tax laws in a country. Typically, they are recognized in the year of sale for the purpose of financial reporting. Also, installment sales for any goods or services are to be reported in the tax return, at a later time when cash is received from the customer (buyer).

This results in a deferred tax liability because taxable income is lower than financial income in the year of sale, and higher than financial income in later years when collected.

7 0
2 years ago
Using this feature will fit an image to the size of an image frame.
Aleonysh [2.5K]

Answer:

c option

Explanation:

8 0
3 years ago
Other questions:
  • Outsourcing value chain activities has such strategy-executing advantages as
    14·1 answer
  • When formatting your résumé, it’s important to consider the organization of the information you’re providing a potential employe
    8·1 answer
  • Sharon Lee wants to accumulate $10,000 by the end of 12 years. If the annual interest rate is 8.00 percent and interest compound
    5·1 answer
  • In double-entry accounting, where should you record money that is leaving your company to pay bills?
    14·1 answer
  • Krier Corporation uses a predetermined overhead rate that was based on estimated manufacturing overhead of $738,000 and 30,000 d
    9·1 answer
  • On Dec 1, 2019 ABC purchases a piece of equipment with a total cost of $[YOUR NUMBER] * 1000. The equipment is expected to have
    12·1 answer
  • Southfield Company reached an agreement with its bank to transfer a piece of land with a historical cost of $500,000 and a fair
    9·1 answer
  • TRUE OR FALSE
    5·1 answer
  • A janitor cleaning a production facility would be considered: a) direct labor. b) overhead. c) asset.
    9·1 answer
  • If a balance exists in the temporary moh account at the end of the​ period, it can be ignored for purposes of preparing the​ com
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!