Answer:
the revised depreciation is $ 3,753
Explanation:
<em>Straight Line Method of Depreciation charges the same amount of depreciation over the useful life of the asset.</em>
Depreciation Charge (Straight line) = (Cost - Salvage Value) / Useful life
Year 1
Depreciation Charge = ( $58,800 - $3,400) / 9 years
= $6,156
Year 2
Depreciation Charge = $6,156
Year 3
Make the adjustment as if the adjustment happened at the beginning of the year
Make the following changes
(1) Adjast the Depreciable Amount (numerator)
(2) Adjast the Useful life (denominator) to 11 years
Depreciation Charge = (Cost - Previous Depreciation Charges - New Residual Value) / Revised Number of Useful life
Depreciation Charge = ($58,800 - $6,156 - $6,156 - $5,200)/ 11 years
= $ 41,288/ 11 years
= $ 3,753
Answer:
O increase by $48,000
Explanation:
A loss is made on disposal of an asset when the amount received from the disposal is lower than the carrying amount of the asset. The carrying amount or net book value of an asset is the difference between the cost of the asset and its accumulated depreciation.
Hence
Carrying amount = $75,000 - $20,000
= $55,000
Let the amount received on disposal be K
K - $55,000 = -$7,000
K = $55,000 - $7,000
= $48,000
This is the amount received from the disposal and it represents an increase in cash.
Answer:
the profit margin will decrease and supplies won't get their promotin
Explanation:
i=interest rate
X=current rate
2X = double current rate
n = number of years
Calculate time it takes to double at 3%:
2X = X(1+i)^n
simplify by cancelling out X
(1+i)^n = 2
substitute i = 3%
(1.03)^n =2
take log
n*log(1.03) = log(2)
n = log(2)/log(1.03) = 0.6931/0.02956 = 23.45 years
Similarly, for growth rate of 7%,
n = log(2)/log(1.07) = 0.6931 / 0.06766 = 10.24 years
So the difference is 23.45-10.24 = 13.21 years (to the hundredth) sooner
Operating Costs
3.Cost of actually running a business
This is a clear indication of the company's resource usage productivity.
Accounts Payable
6.Amounts of money the company owes to other companies for products
as this affect the overall short term debt, if this is lower, the better for the company.
Cash Flow
4.The movement of money in or out of a business
having a positive cash flow is good for investment and capital expenditures.
Startup Costs
2.Cost of starting up a business until it can pay for itself
these costs are most of the time unavoidable.
Gross Profit
5.Total Revenue - Cost of Goods Sold
Angel Investor
1.An investor who provides money to a business in exchange for debt or equity
however, the risk is that you might end up giving a significant controlling stake of the company to the investor.
