Answer:
Indicating whether the expenditure should be capitalized or expensed in the period incurred:
a. Improvement = capitalized
b. Replacement of a minor broken part on a machine = expensed
c. Expenditure that increases the useful life of an existing asset = capitalized.
Explanation:
The expectation of costs producing an economic benefit beyond the current year or within the normal course of an operating cycle determines whether to capitalize or expense the costs. When an item of expenditure is capitalized, it means that the expense recognition is delayed. When the cost is expensed, it is treated as an expense in the income statement, whereas a capitalized cost is taken to the balance sheet, with only the depreciation expense portion recognized as expense for the period.
Answer:
(i) 7.54%(Approx).
(ii) $8,995,138.42(Approx).
Explanation:
Given that,
Winner’s prize money = $220
In 2016,
Winner’s check = $1,460,000
We use the formula:
Where
,
A=future value
P=present value
r=rate of interest
n=time period.
n = 2016 - 1895
= 121
(a)
(1+r/100) = 1.075440035
r = (1.075440035 - 1) × 100
= 7.54%(Approx).
(b)
n = 2041 - 2016
= 25
= 1,460,000 × 6.161053698
= $8,995,138.42(Approx).
The Perfect Rose Co. has earnings of $1.70 per share. The benchmark PE for the company is 20.
What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Stock price = Earning per Share * PE Ratio
Stock price = 1.70*20
Stock price = $ 34
What if the benchmark PE were 23? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Stock price = Earning per Share * PE Ratio
Stock price = 1.70*23
<span>Stock price = $ 39.10</span>
A(n) Enterprise System is central to individuals and organizations of all sizes and ensures that information can be shared across all business functions and all levels of management to support the running and managing of a business.
<h3><u>
Explanation:</u></h3>
The important process that are used by the business can be easily integrated and coordinated with the help of an ERP or an enterprise system. The main purpose of using an ERP system is for the planning of the resources that are used by an organisation. This helps an organisation to integrate different range of applications and also managing the supply chains.
There are different Enterprise system that business can use for its effective working. They include resources planning (ERP) systems,
customer relationship management software and enterprise planning systems. An Enterprise System acts as a hub in center for the organisations of varying size and serves it for ensuring information flow along the management levels and business functions for its effective operation.
