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nexus9112 [7]
3 years ago
13

Greg's Copy Shop bought equipment for $60,000 on January 1, 2006. Greg estimated the useful life to be 3 years with no salvage v

alue, and the straight-line method of depreciation will be used. On January 1, 2007, Greg decides that the business will use the equipment for a total of 5 years. What is the revised depreciation expense for 2007?a. $20,000b. $8,000c. $10,000d. $15,000
Business
1 answer:
marysya [2.9K]3 years ago
5 0

Answer:

c. $10,000

Explanation:

Depreciation per year = (Cost of equipment - Salvage) / useful life

Depreciation for 1 year (Jan 1,2006 - Jan, 2007) = (60000-0)/3 = 20,000

However, on January 2007, the remaining useful life will change from 2 years to 5-1 = 4 years

Beginning 2007,

accumulated depreciation = 20,000

Remaining Book value of equipment = 60,000 - 20,000 = 40,000

Depreciation for Year 2007  will be = ($40,000 -0)/4 = $10,000

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must understand

Explanation:

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2 years ago
Several line items and account titles are listed below. For each, indicate in which of the following financial statement(s) we w
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Answer:

a. Cash asset - Balance Sheet (BS) and Statement of Cash Flows (SCF)

Cash is recorded as an asset in the balance statement and derived from the statement of cash flows.

b. Expenses - Income statement (IS)

Expenses are deducted from revenue in the income statement to come up with Net Income.

c. Non-cash assets - Balance Sheet (BS)

Non-cash assets are recorded in the balance sheet as all assets are.

d. Contributed capital - Balance Sheet (BS) and Statement of stockholders' equity (SE)

Contributed capital from shareholders will appear in the equity section of the balance sheet and in the statement of equity.

e. Cash outflow for capital expenditures - Statement of Cash Flows (SCF)

This is a Cashflow statement entry under Investing activities.

f. Retained earnings - Balance Sheet (BS) and Statement of stockholders' equity (SE)

Retained earnings will go into the balance sheet and the statement of equity.

g. Cash inflow for stock issued - Statement of Cash Flows (SCF) and Statement of stockholders' equity (SE)

Cash inflow from stock issued will be recorded in the financing section of the cashflow statement as well as in the statement of stockholder equity.

h. Cash outflow for dividends - Statement of Cash Flows (SCF) and Statement of stockholders' equity (SE)

Cash outflow from dividends issued will be recorded in the financing section of the cashflow statement as well as in the statement of stockholder equity.

i. Net income - Income statement (IS), Statement of Cash Flows (SCF) and Statement of stockholders' equity (SE)

Net income is derived from the Income statement and used in the statement of cashflow as well as the equity statement.

6 0
3 years ago
Which of the following best describes a push strategy? Group of answer choices Manufacturer builds strong consumer demand for a
maksim [4K]

Answer: Manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

Explanation:

In a push strategy the manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

In a push strategy, the firm takes it's products to the consumer. The aim of this is for the product to gain much exposure than it already has and attract more sales. Other sales channels are bypassed in the scenario, leaving just the producer and the customer. Advertisment is one of the greatest promotional tool for push strategy.

6 0
2 years ago
The large, heterogeneous market from which specific submarkets (market segments) are drawn is called the aggregate market.
Marysya12 [62]

Answer:

False

Explanation:

The large heterogeneous market is a market structure where diverse commodities and services are available to the customers. Overall, large heterogeneous markets are known as 'Mass markets' or ' Total product market'. This market satisfies customer needs due to mass production of distinctive goods. In the large heterogeneous market, customers have different perspectives, wants, choices and nature etc.

8 0
3 years ago
Whole Nature Foods sells a gluten-free product for which the annual demand is 5000 boxes. At the moment it is paying $6.40 for e
prisoha [69]

Answer:

the answer is =32291.67.

The firm should take the advantage of the new quantity as the total cost is lesser as compared with the  old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.

Explanation:

Solution

Given that:

The Annual demand D = 5000 boxes

The Cost C = $6.4 per each box

The Carrying cost H = 25% of the unit cost = 0.25*6.4 = 1.6

The ordering costs S = $25.00

Now,

EOQ =√2DS/H

EOQ =√(2*5000 * 25)/1.6

Thus,

EOQ =Q = 395.28

The Total cost = DC + (Q/2)H + (D/Q)S

= 5000*6.4 + (395.28 /2) 1.6 + (5000/395.28)25

Then,

T = 32000 + 316.23 + 316.23

= 32632.46

So,

The new supplier has offered to sell the same item for the amount of  $6.00 if Q = 3,000 boxes

Hence,

The total cost = 5000 * 6 + (3000/2)1.5 + (5000/3000)25

= 30000 + 2250 + 41.67

= 32291.67

Therefore, The firm should take the  advantage of the new quantity as the total cost is lesser as compared with the  old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.

7 0
3 years ago
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