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3 years ago

Reviewing the Budget

Business

2 answers:

professor190 [17]3 years ago

8 0

Answer:

564943

2355872-1790929

vekshin13 years ago

4 0

Answer:

For each month we calculate the variance by finding the difference between the Actual numbers and Budget numbers.

Then we indicate if the practice was "Overbudget" or "Underbudget".

If the actual numbers are less than the budget numbers, the budget is we say that the budget is under budget.

If the actual numbers are more than the budget numbers, the budget is we say that the budget is over budget.

Month Budget Actual Variance Under/ over

<u> (Actual -Budget) Budget </u>

January 23,55,872 17,90,929 -5,64,943 Under Budget

February 26,54,031 28,27,606 1,73,575 Over Budget

March 22,39,980 29,24,180 6,84,200 Over Budget

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A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage

Mandarinka [93]

The amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.

<h3>What is depreciation expense?</h3>

Depreciation expense is the cost of a depreciated asset for a specific period, and it reveals how much of the asset's value was used up in that year.
Accumulated depreciation is the entire amount of depreciation expense given to an asset since it was placed in service.
A business spends $84,000 on new display racks with a useful life of 7 years (84 months) and no residual value.
The corporation would most likely choose a straight-line depreciation technique, which would result in a $1,000 monthly depreciation expenditure ($84,000/84 months = $1,000 per month).

The straight-line technique of calculating depreciation expense is given below:

= (Original cost - salvage value) ÷ (useful life)
= ($173,000 - $8,600) ÷ (10 years)
= ($164,400,000) ÷ (10 years)
= $16,440

In this method, the depreciation is the same for all the remaining useful life.

Now for the 7 months, the depreciation expense would be:

= $16,440 × 7 months÷ 12 months
= $9,590

Therefore, the amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.

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The correct question is given below:

A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is ______.

(A) $16440.

(B)$9590.

(C)$8220.

(D)$6850.

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1 year ago

Fama’s Llamas has a WACC of 9.7 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 7.5 percent.

Bezzdna [24]

Answer:

0.4766

Explanation:

Given:

WACC = 9.7%

Company’s cost of equity = 12%

Pretax cost of debt = 7.5%

Tax rate = 35%

Now,

WACC

= Weight × Cost of equity + (1 - weight) × Pretax cost of debt × (1-tax rate)

0.097 = weight × 0.12 + ( 1 - weight ) × 0.075 × (1 - 0.35)

0.097 = 0.12 × weight + 0.04875 - 0.04875 × weight

0.04825 = 0.07125 × weight

weight = 0.6772

also,

weight = $\frac{\textup{Equity}}{\textup{Debt + Equity}}$

$\frac{\textup{1}}{\textup{weight}}$ = $\frac{\textup{Debt+equity}}{\textup{Equity}}$

$\frac{1}{0.6772}$ = $\frac{\textup{Debt}}{\textup{Equity}}$ + 1

1.4766 = $\frac{\textup{Debt}}{\textup{Equity}}$ + 1

$\frac{\textup{Debt}}{\textup{Equity}}$ = 0.4766

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3 years ago

The truth in lending act is contained in title of I of the:

densk [106]

Answer:

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Explanation:

laid the foundation for consumer protection

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he value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of two elements

nekit [7.7K]

Answer:

TRUE

Explanation:

Using the Gordon Growth Model, we can adequately demonstrate that the dividend and price of a share are both components of the cashflow to be considered in share valuation.

Price per share is found to be D(1) / (r - g)

where:

Do = Dividend now

D1 = Dividend in year 1

g = growth

r = required return

So we see that the market price of a share which determines the market capitalization of a company is predicted by a growth in dividends. So the benefits of holding a share will not only depend on how much the share is sold now as against how much it can be sold in the future (in order to make a gain), but also how much you can be earning until such sale occurs.

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balu736 [363]

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