Answer:
12%
Explanation:
Calculation for the internal rate of return if the company buys this machine
Using this formula
IRR = Initial investment/Annual Cash flow
Where,
Initial investment =$47,907
Annual Cash flow =$19,946
Let plug in the formula
IRR= $47,907/$19,946
=2.402
Using PV factor table = 2.402
IRR = 12%
Therefore internal rate of return if the company buys this machine will be 12%
Answer:
short-term investment 10,000 debit
cash 10,000 credit
note receivables 5,000 debit
cash 5,000 credit
equipment 18,000 debit
cash 5,000 credit
note payable 13,000 credit
cash 11,000 debit
common stock 1,000 credit
additional CS 10,000 credit
cash 9,000 debit
note payable 9,000 credit
Patents 3,000 credit
cash 3,000 debit
Building 24,000 debit
cash 8,000 credit
note payable 16,000 credit
cash 1,000 debit
equipment 1,000 credit
Explanation:
To record the entries we need to alwasy make debit = credit
we must use account names to represent each concept which are quite easy you don't have to overthink ou write what it is telling you it happen
Whe nthe company use cash use cash account
when it purchase equipment use equiptment
<span> the rate of inflation for that year is 10%
To calculate the rate of inflation for that year, we need to use this formula:
Rate of inflation = (CPI2 - CP1) / CPI1
Rate of inflation = (275 - 250) / 250
Rate of inflation = 25 / 250
Rate of inflation = 1 / 10
Rate of inflation = 10 %</span>
Answer:
$159,500
Explanation:
Total assets = $870,000
Total liabilities = $745,000.
Total equity is the difference between the assets and liabilities according to the accounting equation. Therefore,
Total equity = $870,000 - $745,000
= $125,000
Increase in asset during the year = $59,000
Increase in liabilities during the year = $24,500
Therefore, increase in equity
= $59,000 - $24,500
= $34,500
At the end of the current year, stockholders' equity is made up of the opening balance and the increase during the year. Hence,
current year's stockholders' equity = $125,000 + $34,500
= $159,500
Answer:
(B) 34400 units
Explanation:
The formula to compute the break even point is shown below:
= (Fixed costs) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $50 - ($50 × 50%)
= $50 - $25
= $25
And, the fixed cost = $665,000 + $195,000 = $860,000
So, the break even point would be
= ($860,000) ÷ ($25)
= 34,400 units
