Please help me to solve this.

Anastaziya [24]

Answer:

e) All temporary accounts are closed but permanent accounts are not closed.

Explanation:

At the time of the closing entries, the temporary accounts are closed instead of all other accounts. The temporary accounts include revenues account, expenses account, dividend paid account, ultimately income summary account

These accounts are closed so that the amount of these accounts should be carried forward to the next accounting period. The amount would always be zero, And in every accounting period, these accounts are closed.

4 0

3 years ago

Redwood Corporation is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investme

Nady [450]

Answer:

6.1%

Explanation:

As per given data

Proposal X Proposal Y

Investment $900,000 $488,000

Useful life 9 years 9 years

Annual net cash inflows for 9 years $130,000 $84,000

Residual value $42,000 $0

Depreciation method Straight-line Straight-line

Required rate of return 15% 12%

Accounting rate of return is the ratio of average net income of a project and the average investment made in the project.

Accounting rate of return = Average Net income / Average Investment

As net cash inflows are given we need to deduct the depreciation from the cash flows to arrive at the net income for the period. As all cash flows are constant so, the average value will be equal to the single years value.

Average net income = Net cash inflows - Depreciation = Net cash inflows - ( Cost of Asset - Residual value ) / Useful life of asset = $84,000 - ( $488,000 - $0) / 9 = $84,000 - $54,222 = $29,778

Average Investment = $488,000

Placing Values in the formula

Accounting rate of return = $29,778 / $488,000 = 6.1%

5 0

3 years ago

Operations managers at Alumax Corporation have found that they can achieve efficient production only by producing very large qua

DedPeter [7]

Answer: continuous production process

Explanation: In simple words, it refers to a production process in which the organisation has to keep doing the production due to the potential loss of of degradation of the raw materials or any other such factors.

In the given case, the company is able to produce efficiently only if they produce in large quantities.

Hence they should indulge in continuous production process.

7 0

3 years ago

Logan purchased a rental home and lot for $150,000. Her expenses totaled $5,000. Lots in the area sell for approximately $10,000

lana [24]

Answer:

The correct response is "145,000 ".

Explanation:

The given values are:

Purchased cost,

= $150,000

Expenses,

= $5,000

Selling cost,

= $10,000

Now,

Logan's basis for depreciation will be:

= $Purchased \ cost+Expenses-Selling \ cost$

On putting the values, we get

= $150000+5000-10000$

= $155000-10000$

= $145,000$ ($)

3 0

2 years ago

You are evaluating five different investments, all of which involve an upfront outlay of cash. Each investment will provide a 2

Naddika [18.5K]

Answer:

8.27%

4.69%

10.77%

9.47%

4.81%

Explanation:

Please find attached the diagram of the cash flows

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR = (future value / present value)^(1/n)

n = number of years

1. (2637/1100)^(1/11) - 1 = 8.27

2. (13091 / 9500)^(1/7) - 1 = 4.69

3. (1855 / 400)^(1/15) - 1 = 10.77

4. (5030 / 3200)^(1/5) - 1 = 9.47

5. (9598 / 6000)^(1/10) - 1 = 4.81

8 0

2 years ago