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Nonamiya [84]
3 years ago
4

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.

The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines' second year depreciation under the double-declining-balance method.
Business
1 answer:
Sav [38]3 years ago
4 0

Answer:

Year 2= $20,880

Explanation:

Giving the following information:

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year for $87,000. The machine's useful life is estimated to be 5 years, with a $7,000 salvage value.

We need to use the following formula:

Annual depreciation= 2*[(book value)/estimated life (years)]

Year 1= (87,000/5)*2= 34,800

Year 2= (52,200/5)*2= 20,880

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Airida [17]

Answer:

Results are below.

Explanation:

<u>To calculate the activities rate, we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Designing= 444,000/13,000= $34.15 per designer hour

Sizing and cutting= 4,210,000 / 169,000= $24.91 per machine hour

Stitching and trimming= 1,490,000 / 75,500= $19.73 per labor hour

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6 0
3 years ago
For each of the following scenarios, determine if it is an indicator of potential cash flow problems: (Hint: Review Chapter 5 Po
inn [45]

Answer:

a) yes

b) no

c) yes

d) no

Explanation:

a) if the A/R balance grow higher than the sales is an indicator that our collection cycle increase thus, customer extend their financiation providing less cash flow

b) this is the opposite as (a)  here we extend our financing agaist our suppliers. The payment cycle increases thus, decreasing the overall cash demand

c) If the assets were puirchased on cahs a huge amount was used alrady affecting the liquidity of the company.

If the company finance the purchase of the long term assets, in the future the company will have to dedicate a portion of their future cahs flow to pay up interest and principal which is what we should analize; wether or not the company will have difficulties in the future and the answer is yesin both scenarios.

d) no. It will not, as marketable securities are generally short-term and easily converted into cash in the short term. They do not generate cash flow problems in the long run as the company can sale them anytime to obtain cash.

6 0
3 years ago
A stock has an average expected return of 10.8 percent for the next year. The beta of the stock is 1.22. The T-Bill rate is 5% a
uranmaximum [27]

Answer: 4.7%

Explanation:

Expected return is calculated as:

= Risk free return + Beta ( Market risk premium)

10.8% = 5% + (1.22 × Market risk premium)

10.8% - 5% = 1.22market risk premium

5.8%/1.22 = market risk premium

Market risk premium = 0.058/1.22

Market risk premium = 0.047

Market risk premium = 4.7%

7 0
3 years ago
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lisabon 2012 [21]

Employee empowerment is another term used to describe decentralization an objective of the employment relationship in which workers are given some say in the conditions of their employment.

Centralization or decentralization is the process by which an organization's activities, especially those related to planning and decision-making, are decentralized or delegated from a central, authoritative place or group.

The concept of decentralization has been applied to the group dynamics and management sciences of private companies and organizations, political science, law and administration, economics, money, and technology.

learn more about decentralization  here; brainly.com/question/27661901

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3 0
1 year ago
In NIMS, resource inventorying refers to preparedness activities conducted _________ (of) incident response.
liubo4ka [24]

Answer:

The correct answer is a) outside

Explanation:

The Incident Resource Inventory System (IRIS) emphasizes the ability to check resources and share resource information with other agencies. The users can choose specific resources for mutual aid purposes based on specific requirements.

In NIMS, resource inventorying refers to preparedness activities conducted outside of the incident response.

4 0
3 years ago
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