Answer:
Explanation:
Incremental cost
Inspection cost prior to shipment - 45,000
Upgrading of equipment - 400,000
Incremental benefit - 25,000
The incremental cost of improving quality far outweigh the incremental benefit
Even though loss of profit was avoided by retaining existing customers , yet the quality improvement program dies not guarantee additional customers and profit to write off or reduce the incremental cost .
Therefor , it is not advisable fort the company to go on with the quality program.
Answer:
=$25,400
Explanation:
The cost of the compute was $56,000
The residual value was 5000
Useful life is 5 years
Using the straight-line depreciation method, book value after three years will be
The depreciable amount will be the asset cost value - residual value
= $56,000 - $5000
= $51,000
The depreciation rate will be 1/5 year x 100 = 20%
depreciation per year will be 20% x 51,000
= 20/100 x 51,000
=$10,200
Depreciation for three years will be $10,200 x 3= $30,600
The book value after 3 years :
Book value = original cost - accumulated depreciation
= $56,000 - $30,600
=$25,400
It's appropriate if it's cited and used as an example or prompt.
Answer:
In this case, the amount of $20,000 represents the owner's equity.
Explanation:
Assets:
Assets are the items that are own by a business. Examples of assets are inventory, machinery, company owned vehicles etc.
Liabilities:
Liabilities are the items a business owes to others. Examples of liabilities are bank dept, taxes, mortgage debt etc.
Equity:
Owner's equity is also known as net assets refer to the owner share of assets when the liabilities are paid off.
The relation between Assets, liabilities and owner equity are represented in a equation as:
Assets = Liabilities + Owner Equity
Answer:
The correct answer is c. the company's present businesses offer attractive growth opportunities and can be counted on to generate good earnings and cash flows for shareholders.
Explanation:
A commercial line of products refers to products that are related to each other by some condition such as price, use or distribution. If, after evaluating the market, it is found that these products have a high growth potential, the best thing would be to continue betting on them within a reasonable period of time to reach a considerable level of sales. These products can in some way motivate the sale of others and therefore generate profits in the medium or short term for the shareholders.
