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irina [24]
3 years ago
15

Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was

five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units. Required: Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method?
Business
1 answer:
tatiyna3 years ago
4 0

Answer:

The correct answer is Double-declining-balance.  The highest net income in year 2 is 6000.

This higher net income don´t mean the machine was used more efficiently under this depreciation method.

Explanation:

In the file attached you will find a depreciation schedule for each of the alternative methods.  

Each method need different calculus.  

Straight-line

depreciation expense=(Original Value  -Residual Value)/Useful life=

depreciation expense=4400

Units-of-production

estimated productive life  10000

Units of Production Rate=(Original Value  -Residual Value)/estimated productive life=2,2

Double-declining-balance.

Depreciation rate = 1/useful life *100= 20,00%

Download xlsx
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Explanation:

Hakim set goals for his store that included satisfying his customers while making enough money to open a second store. Which component of a goal did Hakim leave out :

1.Hakim didn't leave anything out.

2. Hakim forgot to include the overall strategy or course of action he would use to fulfill his mission.

3. Hakim forgot to include a time frame in which the goal is to be achieved.

4. Hakim forgot to include exactly how much profit he wanted to make.

5. Hakim forgot to include what his store's purpose and basic philosophy are.

4 0
3 years ago
You believe that the Non-Stick Gum Factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid
Ivan

Answer:

$28.57

Explanation:

Dividend growth model can only be used in a situation where the firm pays a dividend which can tend to grow at constant rates reason been that the stock has been influenced by the growth rates which is involved in the dividends which means the firm can increase the dividends.

Therefore the Dividend that is to be paid next year will be:

$2Growth rates

5 %Rates of return

12% Return on Investment

Formular for the calculation of current price of the stock = D1/(r-g)

Where:

D1=2%

r=12%

g=6%

Hence:

2/ (0.12-0.05)= $ 33.33

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Therefore the amount I should be prepared to pay for the stock today will be $28.57

4 0
3 years ago
What do you think is meant by the phrase "both alien and non-alien"?
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3 years ago
Select which of the ways that entrepreneurs improve the economy is being described:
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Answer:

Select which of the ways that entrepreneurs improve the economy is being described:  As a family's basic needs are met, jobs are given to the people who help provide these needs.

new business

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7 0
3 years ago
Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,
ella [17]

Answer:

a. $20.00

b. $28,75

Explanation:

Find the total incremental costs to satisfy the special order and add $2.00 profit (because we are aiming for a profit not to just break-even).

<u>Calculation of Total Incremental Unit Costs</u>

Direct materials                                          $6 .00

Direct labor                                                 $4.00

Variable Overheads (2/3 × $9)                  $6.00

Shipping Cost                                             $2.00

Total Incremental Unit Cost                      $18.00

<em>Add</em> Profit Element                                     $2.00

Unit Selling Price for the Special Order  $20.00

In this case no changes will occur on fixed overheads, hence it is irrelevant.

<u>Calculation of Desired Net Operating Income</u>

Sales ($28 × 160,000 units)                                     $4,480,000

Less Product Costs :

Direct materials ($6 .00 × 160,000 units)                 ($960,000)

Direct labor ($4.00 × 160,000 units)                        ($640,000)

Variable Overheads ($6.00 × 160,000 units)          ($960,000)

Fixed Overheads ($3.00 × 160,000 units)               ($480,000)

Current Operating Income                                       $1,440,000

Add Desired Increase in Operating Income               $60,000

Desired Operating Income                                      $1,500,000

Unit Profit = $1,500,000 ÷ 160,000 units

                  = $9.375

Unit Profit = Unit Selling Price - Total Unit Costs - Unit Incremental Profit

therefore,

Unit Selling Price = Unit Profit  + Total Unit Costs + Unit Incremental Profit

                             = $9.375 + $19.00 + $0.375

                             = $28,75

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3 years ago
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