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ValentinkaMS [17]
3 years ago
5

g Sheffield Corp. purchased a truck at the beginning of 2017 for $109200. The truck is estimated to have a salvage value of $380

0 and a useful life of 131750 miles. It was driven 23000 miles in 2017 and 31000 miles in 2018. What is the depreciation expense for 2018
Business
1 answer:
frez [133]3 years ago
5 0

Answer:

$24,800

Explanation:

Calculation for the depreciation expense for 2018 for Sheffield Corp.

Using this formula

Depreciation expense = (Purchased at the beginning-Salvage value/Useful life)* Driven miles

Let plug in the formula

Depreciation expense=($109,200-$3,800/131,750)*31,000

Depreciation expense=($105,400/131,750)*31,000

Depreciation expense=0.80*31,000

Depreciation expense=$24,800

Therefore the depreciation expense for 2018 will be $24,800

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Answer:

No it will not, the statement is incorrect.

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since we are not given ROA, we must calculate it first:

ROA = net profit x asset turnover =  6% x 2 = 12%

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The firm can manage to support an annual growth rate of up to 7.2% before it needs to borrow money or issue new stocks.

6 0
4 years ago
The project will require an initial investment of $20,000, but the project will also be using a company-owned truck that is not
Alla [95]

Answer:

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Explanation:

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3 years ago
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Answer:

Explanation:

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