Answer:
$9,000,000
Explanation:
The computation of the depletion expense for the current year is shown below:
Depletion rate per unit is
= Acquired mineral rights ÷ Estimated mineral deposit
= $67,500,000 ÷ 30,000,000 tons
= $2.25 per ton
If the 4,000,000 tons were mined and sold, so the depletion expense is
= $2.25 × 4,000,000 tons
= $9,000,000
Answer:
$325,500
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $240,000
Adjustment made:
Add : Depreciation expense $52,000
Add: Decrease in accounts receivable $5,000
Add: Decrease in inventory $15,000
Add: Increase in accounts payable $14,000
Less: Increase in prepaid expenses -$500
Total of Adjustments $85,500
Net Cash flow from Operating activities $325,500
This is the answer and the same is not provided in the given options
Answer:
the payback period is 3.34 years
Explanation:
The computation of the payback period is as follow;
Given that
Year Cash flows Cumulative cash flows
0 -$40,000 $-40,000
1 $3,000 $3,000
2 $8,000 $11,000
3 $14,000 $25,000
4 $19,000 $44,000
5 $22,000 $66,000
6 $28,000 $94,000
Now the payback period is
= 3 years + ($40,000 - $25,000) ÷ $44,000
= 3 years + 0.34
= 3.34 years
Hence, the payback period is 3.34 years
Answer:
10781
Explanation:
In order to find the additional annual revenue for the two method a break even point must be calculated
Method A
=-8000(1.1)^6+20000(1.1)^6-22000-(u)
=-15776.44-22000 -u
=-37776.44-u
Method B
= -52000(1.1)^6+15000(1.1)^6-17000-2u
=9995.4-17000-2u
=-26995.47-2u
Then equate the two equations
-37776.44-u=-26995.47-2u
u=10781
Answer:
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