Too much money chasing too few goods is characterized by the term _______

Park Ridge Company is considering the replacement of a machine that is presently used in production. The following data are avai

Ainat [17]

Answer:

The Relevant Cost for Five Years $52,000.00

Explanation:

‘Relevant costs’ can be defined as any cost relevant to a decision. A matter is relevant if there is a change in cash flow that is caused by the decision.

The Park Ridge Company's Relevant Old Machine Cost for Five Years is

Disposal value now $32,000.00

Annual cash operating costs $20,000.00

Relevant Cost for Five Years $52,000.00

Old Machine

Original cost $200,000 is Sunk Cost

Useful life in years 10 5 - Will be used for the calculation of Depreciation, Therefore is an Irrelevant cost

Current age in years 5 0 - irrelevant year

Book value $100,000 - are not cash flows and so are not relevant.

Disposal value now $32,000 -

Disposal value in 5 years 0 is without a cost

4 0

3 years ago

Jay, a single taxpayer, purchased an annulty to help provide income during his retirement. He paid $36,000 for the annuity that

Rufina [12.5K]

Answer:

d. All of the last 12 payments he received are taxable.

Explanation:

In the case when the life expectancy is 180 months and collected 192 payments prior he died

So according to the question, all the 12 payments would be received are taxable

Here the payment that received for 180 months would not be involved in the gross income and the remaining 12 payment would be taxable

Therefore the option d is correct

4 0

3 years ago

During 2021, a company sells 500 units of inventory for $95 each. The company has the following inventory purchase transactions

Kryger [21]

Answer:

cost of goods sold = $36,285

ending inventory = $1,742

Explanation:

when you use the weighted average cost method you have to calculate the COGS using the total number of units and the total amount paid for them.

beginning inventory = 71 units for $5,325

purchase 1 = 262 units for $18,864

purchase 2 = 187 units for $13,838

total 524 units for $38,027

cost per unit = $38,027 / 524 units = $72.57

cost of goods sold = 500 units x $72.57 = $36,285

ending inventory = 24 units x $72.57 = $1,741.68 ≈ $1,742

6 0

4 years ago

Identify the major transportation improvements in this period, and explain how they influenced the market economy.

kramer

In the first half of the nineteenth century, the steamboat, canal, railroad and telegraph were presented. This made transportation a great deal less expensive and quicker for organizations. It additionally connected agriculturists to national markets. The railroad gave employments to such huge numbers of Americans, despite the fact that many were foreigners. Telegraph made it conceivable to impart cross country, in any event quicker than mail would. It was for the most part utilized for organizations. Each of the four of these innovations twisted America out of its monetary past by making exchange/business speedier, less expensive, and more productive.

7 0

3 years ago

A7X Corp. just paid a dividend of $2.80 per share. The dividends are expected to grow at 20 percent for the next eight years and

kifflom [539]

Answer:

The price of the stock today=$560

Explanation:

We can use the expression for calculating the required rate of return to calculate the price of the stock today:

RRR=(EDP/SP)+DGR

where;

RRR=required rate of return

EDP=expected dividend payment

SP=share price

DGR=dividend growth rate

In our case:

RRR=13%=13/100=0.13

EDP=$2.80 per share

SP=unknown

DGR=20% and 8%, the average DGR=(20+5)/2=12.5%=0.125

replacing in the original expression;

0.13=(2.8/SP)+0.125

2.8/SP=0.13-0.125

2.8/SP=0.005

SP=2.8/0.005

SP=$560

The price of the stock today=$560

6 0

3 years ago

Too much money chasing too few goods is characterized by the term ________.