Answer:
$15,850
Explanation:
Particulars Amount
Sales revenues, each year $40,000
Less : Depreciation $10,000
Less : Other operating costs <u>$17,000</u>
EBIT $13,000
Less : Interest expense <u>$4,000</u>
EBT/PBT $9,000
Less: Tax at 35% <u>$3,150 </u> ($9,000*35%)
PAT $5,850
Add: Depreciation <u>$10,000</u>
Cash flow after taxes <u>$15,850</u>
Answer:
a. costs of production Pulping: 165000 conversion: 159000
b. Cost per equivalent unit Pulping: 0.65 conversion: 0.20
c. cost of units completed and transferred out: Pulping: 102050 conversion: 31400 Total: 133450
d. Cost of reconciliation:
Cost of beginning in process inventory (4800 + 500) = 5300
Costs added to production during the period (102450 + 31800) =134250
Answer:
$889.70
Explanation:
The computation of the net present value is shown below:
= Present value of all yearly cash inflows after applying discount factor - initial investment
where,
The Initial investment is $10,000
All yearly cash flows would be
= Annual amount received × PVIFA for 4 years at 4%
= $3,000 × 3.6299
= $10,889.70
Refer to the PVIFA table
So, the net present value is
= $10,889.70 - $10,000
= $889.70
Answer:
$104,318.10
Explanation:
For computing the putting amount now i.e present value we have to applied the present value formula i.e to be shown in the attachment below:
Given that,
Future value = $580,000
Rate of interest = 10%
NPER = 18 years
PMT = $0
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $104,318.10
Answer:
$864
Explanation:
Double-declining-balance charges a higher depreciation in early years of the asset and lower in the later years using the formula :
Depreciation expense = 2 x SLDP x BVSLDP
Where,
SLDP = 100 ÷ useful life
= 10 %
and
BVSLDP = Cost (1st year) and Book Value (any other year)
therefore,
Year 1
Depreciation expense = 2 x 10 % x $5,400
= $1,080
Year 2
Depreciation expense = 2 x 10 % x ($5,400 - $1,080)
= $864
thus
The depreciation expense for the second-year of its useful life using the double-declining-balance method is $864.
