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hjlf
3 years ago
7

University Car Wash built a deluxe car wash across the street from campus. The new machines cost $213,000 including installation

. The company estimates that the equipment will have a residual value of $19,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows:
Year Hours Used
1 3,000
2 1,200
3 1,300
4 2,700
5 2,500
6 1,800

2. Prepare a depreciation schedule for six years using the double-declining-balance method. (Do not round your intermediate calculations.)


Depreciation Accumulated Depreciation Book Value

3. Prepare a depreciation schedule for six years using the activity-based method. (Round your "Depreciation Rate" to 2 decimal places and use this amount in all subsequent calculations.)


Same criteria as above

Business
1 answer:
nadezda [96]3 years ago
4 0

Answer:

Please refer explanation and tables attached

Explanation:

1. Double-declining balance Method:

This is where the asset's value is depreciated at twice the rate than the straight line method. The depreciation amounts would be higher in the early years of the asset's life and gradually reduce towards the end. Hence, it does not mean that the depreciation amount would be higher than the straight line basis.

Straight Line depreciation per year = 1/6* x 100 = 16.67%

*as it is useful for six years

Hence double-depreciation value = 16.67% x 2 = 33.34%

It is calculated as depreciation rate x book value of asset at the beginning of the period.

Please refer attached table one for all years depreciation.

2. Activity based depreciation is whereby an asset is depreciated based on the asset’s activity such as the number of hours worked or the number of units produced, during a particular period of time. Activity based depreciation per year is calculated as:

[(Cost - Salvage value) x activity performed during the period] / Total estimated life activity of the asset

Please refer attached table two for all years depreciation.

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Answer:

$3,000 and 7,000

Explanation:

Please find attached the table used in answering this question

Equilibrium price is the price at which quantity demand equal quantity supplied.

Equilibrium quantity is the quantity that equates  quantity demand with quantity supplied.

Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded. As a result of the surplus, price would fall until equilibrium is reached.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied. As a result of the shortage, price would rise until equilibrium is reached

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3 years ago
Motivation consists of being enthusiastic, energized, and engaged to achieve a goal or objective. The three basic elements of mo
Vlad1618 [11]

Answer:

The statement is: True.

Explanation:

Motivation is what drives individuals or organizations to achieve their objectives. Leaders must find ways to keep their subordinates constantly incentivized so their productivity level remains at their highest level possible. In some other cases, reaching personal goals is what drives people. In such scenarios <em>pride, self-interest, </em>and <em>success</em> boost individuals' morale pushing them to their limits.

6 0
3 years ago
Read 2 more answers
A company has total revenue of $50,000,000, cost of sales of $40,000,000, operating expenses of $5,000,000, and financing costs
bekas [8.4K]

Answer:

$30

Explanation:

Earning per share is calculated dividing Earning for the year excluding preferred dividend by outstanding number of shares.

Formula for EPS is as follow:

Earning Per share = ( Net Income  - Preferred Dividend ) / Outstanding Numbers of shares

We need to calculate the net Income, which is calculated as below

Net Income = Revenue - Cost of Goods Sold - Operating Expenses - Financing costs = $50,000,000 - $40,000,000 - $5,000,000 - $2,000,000

Financing costs = $3,000,000

Placing Values in the formula of EPS

EPS = $3,000,000 / 100,000 shares = $30

8 0
3 years ago
Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is​ $1 per​ can,
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Answer:

Option (B) is correct.

Explanation:

The utility maximization point for a consumer is as follows:

\frac{MU_x}{P_x}=\frac{MU_y}{P_y}

It is given that,

price of Pepsi(x) =​ $1 per can

price of a hamburger(y) =​ $2

Marginal utility from Pepsi =​ 4

Marginal utility from hamburgers = 6

Hence,

\frac{4}{1}>\frac{6}{2}

4 > 3

Therefore, it can be seen that the consumer's utility is not maximized at this point.

Law of diminishing marginal utility states that as the consumer consumes more and more quantity of goods then as a result the utility obtained from the consumption goes on diminishing.

So, there is a need to increase the quantity of Pepsi consumed and reducing the quantity of hamburgers consumed.

6 0
3 years ago
A 4-year project has an annual operating cash flow of $58,500. At the beginning of the project, $4,950 in net working capital wa
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Answer:

Net   Cash flow   in year 4   $46,140<u> </u>

Explanation:

Cash flow represent the amount of cash revenue less out of pocket cash expenditures. Non-cash related items are not included.

Year    4                                               cash flow     ;

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Working capital recouped                     4,950

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Tax payable (40%*58500)                      <u>(23400 )</u>

  Net   Cash flow                            <u>      46,140 </u>

3 0
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