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devlian [24]
3 years ago
12

Tapestry Corporation will spend $1 million for special production equipment. Shipping and installation charges will amount to $1

75,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace an existing machine that has a salvage value of $85,000 and a book value of $100,000. Executives expect revenue to increase by $200,000 per year with no increase in operating expenses. If Tapestry has a corporate tax rate of 21%, what is the amount of the initial outlay for this project?
Business
1 answer:
shusha [124]3 years ago
3 0

Answer:

($1,136,850)

Explanation:

The computation of the initial outlay is shown below:

Purchase price (-1,000,000 - $175,000)    (1,175,000) (A)

machine proceeds

{$85,000 + ($100,000 - $85,000) × 0.21}   $88,150 (B)

Net working capital ($50,000) (C)

Initial outlay ($1,136,850)     (A - B + C)

Hence, the initial outlay is ($1,136,850)

We basically applied the above calculation to arrive at the answer

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Albee Township’s fiscal year ends on June 30. Albee uses encumbrance accounting. On April 5, year 1, an approved $1,000 purchase
Mice21 [21]

Answer:

Encumbrances $1000

Reserved for encumbraces $1000

Explanation:

Encumbrance is in the debit because is the money that we have destined for the purchase and  since we have to get the money from our funds Reserved for encumbrances is in the credit.

5 0
3 years ago
Can someone tell me facts about local fundraising. maybe 2 or more facts
Xelga [282]

Answer:

-can provide you with supplemental funds that enhance what your group does and provide new opportunities for your members

- nurture and expand awareness for the cause, project, or brand that you are raising money for

-save and change lives, cure illnesses, protect the planet and make Government change the way they operate

3 0
2 years ago
On January 1, 2021, Red Inc. issued stock options for 200,000 shares to a division manager. The options have an estimated fair v
morpeh [17]

Answer:

$400,000

Explanation:

The compensation expense to be recognized in 2021 is portion of the options value for one year.

Total value of the options=200,000*$6=$1,200,000

Compensation expense per year=fair value of the options/vesting period

fair value of the options is $1,200,000

vesting period is 3 years

compensation expense per year=$1,200,000/ 3 years=$400,000

The $400,000 compensation expense is debited to compensation expense account and credited to paid in capital-stock options $400,000 for each of the vesting period until the paid in capital -stock options account balance becomes $1,200,000 at end of year 3

6 0
3 years ago
John is a subunit manager at a large consumer packaged goods manufacturer. Every year, he and the managers of the other subunits
jeyben [28]

Answer:

Bottom-up.

Explanation:

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3 0
3 years ago
Mentor Corp. has provided the following information for the current year: Units produced 3,500 units Sale price $ 200 per unit D
weqwewe [10]

Answer:

Hence, the unit product cost using absorption costing is $318

Explanation:

For computing the unit product cost, the following things is need to be considered.

1. Direct material = Production units ×  per unit material price

                           = 3,500 × $70

                           =$245,000

2. Direct labor = Production units × per unit labor price

                        = 3,500 × $55

                        = $192,500

3. Variable manufacturing overhead = Production units × per unit variable manufacturing price

                                                             = 3,500 × 20

                                                             = 70,000

4. Fixed manufacturing overhead = $350,000

6. Variable selling and administrative cost = Production units × per unit varaible selling price

= 3,500 × 30

= $105,000

7. Fixed selling and administrative costs = $150,000

Now add these all items and divide by number of units.

So, total cost is equal to

= $245,000 + $192,500 + $70,000 + $350,000 + $105,000 + $150,000

= $1,112,500

And, units produced is = 3,500 units

So, unit product cost = Total cost ÷ units produced

                                   = $1,112,500 ÷ 3,500

                                   = $318

Hence, the unit product cost using absorption costing is $318

7 0
3 years ago
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