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Elena L [17]
3 years ago
15

Suppose a firm is considering the purchase of a machine which when used will increase its total revenues by $10,000 for the year

. The machine costs $8,000 and has a useful life of one year. The interest rate is 20 percent. This investment should:
Business
1 answer:
xz_007 [3.2K]3 years ago
6 0

Answer: Be undertaken because the rate of return is 5 percent greater than the interest rate

Explanation:

Given the following ;

Revenue increase = $10,000

Cost of machine = $8,000

Calculating the Rate of Return on the investment ;

FV = PV × (1 + r)^n

FV = Revenue increase = $10,000

PV = Cost of machine = $8000

n = period = 1 year

r = rate of return

$10000 = $8000 × (1 + r) ^1

1 + r = $10,000 ÷ $8,000

1 + r = 1.25

r = 1.25 - 1

r = 0.25 = 25 %

Interest rate = 20%

Rate of Return on investment = 25%

Rate of Return is 5% greater than interest rate

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When an organization has a diverse set of employees that can provide insight and cultural sensitivity, this should improve the c
Alchen [17]

Answer:

Higher Creativity in Decision Making due to diversity and understanding of the environment in which it operates.

Explanation:

The reason is that the diversity brings access to great pool of hidden resources which we can utilize in a number of ways. People are observer and can play a vital role in the designing of strategic stance of the company. This strategy will influence company's financial position in future. So diversity helps in understanding of environment (environmental analysis) and informed decision making.

7 0
3 years ago
At December 31, Gill Co. reported accounts receivable of $268,000 and an allowance for uncollectible accounts of $750 (credit) b
Andrei [34K]

Answer:

: $4,610

Explanation:

The allowance for uncollectible accounts should be 2% of accounts receivable. So first we wil find out the 2% of $268,000.

($268,000 x 2%) = $5,360

Then we will subtract the $750 allowance for uncollectible accounts before any adjustments.

$5,360 - $750 = $4,610

The amount of the adjusting entry for uncollectible accounts would be: $4,610.

4 0
3 years ago
You are the beneficiary of a life insurance policy. the insurance company offers two options for receiving the proceeds: a lump
r-ruslan [8.4K]
Take the $550 per month for monthly income as after ten years it would reach the same amount just in a longer period of time
8 0
3 years ago
2. How could you assess whether new office designs are improving the organizational culture
juin [17]

Answer:A proper office layout is the key to a high performance office. This means both good performance from your employees but also your business. Companies that have a great culture are highly sought after by prospective employees and can provide a competitive advantage in both hiring and retaining staff.

Explanation:

7 0
2 years ago
Has anyone done the managing payroll quiz for Personal Finance on connexus???
trasher [3.6K]

Answer:

a) withholdings

b) deductions

c) payroll register

d) methods of paying employees

e) commission

f) specific required deductions

g) hourly rate

h) voluntary deductions

i) Salary

j) standard deductions

Explanation:

A)

Withholdings are the amount that is associated with the payroll deductions from an employee's gross wages. The employer does not include withholdings in the employee's paycheck. Instead of adding it to the salary, the amount is transferred to the federal, state, or local government or tax authorities. It also decreases the tax that an employee has to pay during the yearly tax return.

B)

When an employer withholds any amount from an employee's gross salary, such as taxes, insurance, wage responsibilities, saving plans, and child support payments, it refers to deductions. The payroll deduction is also known as involuntary deductions because the employer is withholding the amount. Those deductions are legally deductible; therefore, it is automatic deductions.

C)

A list of periodic reports that enlist the hourly wages, additionals, gross pay, deductions, net pay, and the date of payrolls refers to the payroll register. More precisely, it is a summary of each employee's paycheck throughout a period. It starts with the current quarter's or month's total hourly wages and ends with the net pay of the employee.

D)

The commission is the percentage paid to an employee for his or her additional service provided for the company. For example, a company asks an employee to produce anything over 500 shirts per week will receive 10% additions, if the employee contributes in 510 shirts, he will receive an extra payment, it is commission. The hourly rate is the amount paid to the employee per hour. The salary is the monthly or weekly amount paid to an employee for his periodic contribution towards a business.

E)

The commission is the portion given to an employee for his or her supplementary service rendered for the company. For example, a manager of a firm urges the sales representative to sell $10,000 per month to receive an extra 10% of the total sales. If the sales representative sells $10,000 or more, he will receive an additional fee as a percentage. That percentage refers to the commission.

F)

Specific payroll deduction means deduction from paycheck to meet the obligations of income tax and other required duties. Every individual and corporation whose income is taxable is obliged to pay a tax. In the case of specific payroll deduction, an employee is legally obligated to withhold this money from an employee's payroll check based on federal and state laws. But specifically required deduction is not only used for tax provisions but also used for employee-related benefits like health insurance and short time disability plans that are offered by the employer.

G)

According to the Cambridge dictionary, hourly rate means the amount of money that is charged, paid, or earned for every hour worked. An employer is bound to pay a minimum hourly wage to the employee. It is one of the critical issues as many workers work as a part-time job. Since it is not a fixed job, so monthly or weekly payment is not applicable here. To adjust the amount for every type of employment, whether it is a permanent or temporary hourly rate of wage, is the best solution.

H)

When any deductions from employees salary or wages are not legally binded, those deductions are termed as Voluntary deductions. Voluntary deduction does not need any imposition of law. As it is not legally required, it is offered by the employer for employee's acceptance. This kind of deduction may include health, accident, disability, retirement plans; flexible spending accounts such as parking and transit costs; union dues; and deductions for paycheck advances and other company-sponsored benefits.

I)

Salary is most commonly known as compensations paid by the employer to an employee in return for required job performance. Salary generally paid in fixed intervals for an individual's performance. The intervals may be weekly, monthly, etc. and these are set up by a mutual contract between employer and employee. Salary mainly includes base pay and other benefits,  bonuses, or rises. Salary mainly gives security towards the employee as it is fixed payment for their work performances.

J)

Standard deduction means deduction of some amount of money from the total amount of income to reduce total taxable income. In short, it means a portion of income that is not subject to tax. The amount of one's standard deduction depends on one's filing status, age, or whether one is disabled or claimed as a dependent on someone else's tax return. But all the taxpayers are not qualified to enjoy this provision. Nonresident husbands and wives, married people filing separately whose spouses itemized, and trusts and estates cannot entertain this benefit.

8 0
3 years ago
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