Answer:
1. $425,000
2. 10.49%
3. 1.25
4. 13.11%
Explanation:
The computations are shown below:
1. For Average operating assets
= (Beginning Operating Assets + Ending Operating Assets) ÷ 2
= (390,000 + 460,000) ÷ 2
= $425,000
2. For margin:
= Net Operating Income ÷ Sales × 100
= $55,750 ÷ $531,250 × 100
= 10.49%
3. For turnover:
= Sales ÷ Average Operating Assets
= $531,250 ÷ $425,000
= 1.25
4. For return on investment:
= Net Operating Income ÷ Average Operating Assets
= $55,750 ÷ $425,000
= 13.11%
You multiply 3 by 120 to get $360 the answer is b. $360
Answer:
The journals entry to record depreciation on the equipment for 2016 will be:
Debit Depreciation expense $14,000
Credit Accumulated depreciation $14,000
<em>(To record depreciation expense for Year 2016)</em>
Explanation:
Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($150,000 - $10,000) / 10 years = $14,000 yearly depreciation expense. This applies to Years 2015 and 2016.
The change in the estimate in Year 2017 will not affect the depreciation expense for 2016 based on the previous parameters,
Answer:
Explanation:
He should work with the 50,000 hours estimate instead of the 40,000 in order to avoid shortage of funds during the business year
Answer:
$33,850.00
Explanation:
The computation of the Adjusted gross income (AGI) is shown below:
= Wages + bank interest + lottery price - standard deduction
= $34,500 + $275 + $325 - $1,250
= $33,850
The standard deduction is a contribution to her traditional IRA. All other items which are given in the question are not relevant. Hence, we ignored it