Expanding businesses often centralize distribution to create more efficient processes.

On June 1, 2016, Bagby Co. purchased a new car for $36,000 with a useful life of eight years and a residual value of $4,800. If

natima [27]

Answer:

The correct answer is a which is $ 6,750

Explanation:

Determine the depreciation base

The depreciation base = Acquisition cost - Residual/Salvage value.

The depreciation base = 36,000 - 4,800.

The depreciation base = $31,200.

Determining the depreciation rate

The depreciation rate = depreciation base / Useful life

The depreciation rate = 31,200/8

The depreciation rate = $ 3,900.

To determine depreciation rate %

Depreciation rate % = (The depreciation rate / depreciation base) × 100

Depreciation rate % = 12.5 %

Since Bagby Co. uses double declining balance depreciation, the correct depreciation rate % is 12.5 × 2= 25%

Determining the depreciation expense for 2017

2017's depreciation expense is computed as:

(Acquisition cost - 2016's depreciation expense) × Depreciation % rate

2016's depreciation expense is computed as:

Acquisition cost × Depreciation % rate = 36,000 × 25%

2016's depreciation expense = $9,000.

Therefore 2017's depreciation expense = (36,000 - 9,000) × 25%

Therefore 2017's depreciation expense = $ 6,750.

7 0

3 years ago

Alfonso had hoped to be a professional artist. Painting is his medium, and he specializes in large canvases. While his art is qu

ella [17]

Answer:

- doing online commissions

- Doing house paintings

- Creating a video content online.

Explanation:

- doing online omissions

In this business model Alfonso need to use some sort of website or social medias to promote his skill and services. He need to gathered request from online customers and paint according to their online request

- Doing in house paintings

IN this model, Alfonso will receive house calls from the customers. Alfonso need to come to the customer';s house and draw a portrait of the customers or their family.

- Creating a video content online.

Alfonso could also create online videos about painting tutorial or a follow along video. He can gained profit through ads or sponsors.

8 0

3 years ago

The next two questions pertain to the problem below: You researched Jersey Kids Corp on Yahoo Finance and you found the followin

Leona [35]

Answer:

The current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.

Explanation:

The current stock price of Jersey Kids Corp in 2021 can be calculated using the formula for the dividend discount model as follows:

P2021 = D2022 / (r - g) ............................ (1)

Where,

P2021 = current stock price in 2021 = ?

D2020 = Annual dividends per share paid in 2020 = $3.00

D2021 = Annual dividends per share paid in 2021 = D2020 * (1 + g) = $3 * (1 + 0.02) = $3.06

D2022 = Annual dividends per share paid in 2022 = D2021 * (1 + g) = $3.06 * (1 + 0.02) = $3.1212

r = required return = 10%. or 0.10

g = growth rate = 2% = 0.02

Substituting the values into equation (2), we have:

P2021 = $3.1212 / (0.10 - 0.02)

P2021 = $3.1212 / 0.08

P2021 = $39.02

Therefore, the current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.

7 0

3 years ago

U.S. GAAP for long-lived assets significantly impedes rate-of-return comparisons across companies unless the firms:

kap26 [50]

Answer: Apply the same depreciation methods and the same useful lives among similar groups of assets

Explanation:

US GAAP for long-lived assets significantly impedes rate-of-return that is, the annual income from an investment which is being expressed as a proportion of the original investment comparisons across companies unless the firms apply the same depreciation methods and also the same useful lives are applied among identical groups of assets.

6 0

3 years ago

Cement Works has a beginning cash balance for the quarter of $1,211. The company requires a minimum cash balance of $1,200 and u

Dmitriy789 [7]

Answer:

The correct answer is:

Repay $413 (d)

Explanation:

In order to solve this, we first of all have to classify all the cash as either income or expenditure, then we find the net balance, and putting the minimum cash balance into consideration, find if money will be borrowed or payed. It is calculated as follows:

Beginning balance = $1,211

Outstanding debt = $1,318

Quarterly Receipt = $4,209

Quarterly disbursement = $3,807

Minimum holding balance = $1,200.

Next, let us determine all the incomes and money at hand, they are; Beginning balance and quarterly receipt, while the expenditure is; quarterly disbursement.

Next, we will calculate the balance after available cash has been subtracted from expenditure.

Total cash available = Beginning balance + quarterly receipt

= $1,211 + $4,209 = $5,420.

Balance left at the end of the quarter = Available cash - expenditure

= $5,420 - $3,807 = $1,613

So at the end of the quarter, we are left with a balance of $1,613.

Next, we have to consider the statement that says "the minimum cash required by the company is $1,200" meaning that at any time, the cash of the company is at least $1,200.

Hence, amount left when minimum cash is removed = $1,613 - $1,200 = $413.

The excess balance left at the end of the quarter is $413, and since the company was owing some debt, it will have to repay with the excess fund of $413.

4 0

4 years ago