Answer:
The incremental revenue the company gets is:
= Labor cost decrease - Other cash increase
= 753,000 - 216,000
= $537,000
Depreciation = 105,000/ 9
= $11,667
Annual Cashflows (Year 1 - 9)
= (Incremental revenue - Depreciation) * ( 1 - tax) + Depreciation
= (537,000 - 11,667) * (1 - 34%) + 11,667
= $358,386.78
Cashflow in year 0
= Cost of equipment + Investment in net working capital
= -105,000 - 24,000
= -$129,000
Answer:
Debit cash $7800
Credit unearned revenue $7800
Explanation:
The amount of $7800 was received in cash on October 1. Therefore, the cash account will be debited with the $7800 received.
The corresponding credit entry of $7800 will be to the unearned revenue account since the revenue has not been earned. Revenue will be earned at the end of each month of the lease. This account will subsequently debited each time the revenue is earned i.e at the end of each lease month.
Answer:
Total Assets = Total Liabilities and Stockholder's Equity = $20,200
Explanation:
An unclassified balance sheet is a type of balance sheet that does not present assets and liabilities under different categories. It only presents all assets in order of liquidity and liabilities in order of the shortness of their terms.
This can be prepared for this question as follows:
Darell Hair Stylists
Unclassifed Balance Sheet
At December 31, 2018
<u>Particulars Amount ($) </u>
Cash 1,000
Accounts Receivable 900
Office Supplies 600
Equipment 19,700
Accumulated Dep. - Equipment <u> (2,000) </u>
Total Assets <u> 20,200 </u>
Accounts Payable 900
Interest Payable 550
Notes Payable 3,400
Common Stock 10,650
Retained Earnings, Dec. 31, 2018 <u> 4,700 </u>
Total Liabilities and Stockholder's Equity <u> 20,200 </u>
Since Total Assets and Total Liabilities and Stockholder's Equity as it is normally required, that indicates that the unclasified balance sheet has been prepared accurately.
Answer:
Part A) D. $137,500
Part B) C. $140,250
Explanation:
Part A) The computation of annual salary payment is shown below:-
Annual salary = Donation made × Interest rate
= $2,500,000 × 5.5%
= $137,500
So, for computing the annual salary we simply multiply the donation made with interest rate.
Part B) The computation of starting salary is shown below:-
Starting salary = Annual salary + Increased annual salary
= $137,500 + 2%
= $140,250
Therefore for computing the starting salary we simply added the annual salary with increased annual salary.
Answer:
$1,000.69
Explanation:
For computing the monthly car payment we need to apply the PMT formula i.e to be shown in the attachment below
Provided that
Present value = $38,000
Future value or Face value = $0
NPER = 48 months
RATE = 1%
The formula is shown below:
= PMT(RATE;NPER;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the monthly car payment is $1,000.69
