Answer:
A. $125,000
Explanation:
before tax loss on discontinued operations
= Operating loss Feb. 1, 2016 – Jan. 31, 2017 + Operating loss Feb. 1, 2016 – Jan. 31, 2017
= $115,000 + $10,000
= $125,000
Therefore, Rocket would report a before-tax loss on discontinued operations of $125,000.
A credit union often requires that its clients be members who own a share in the company.
Answer:
(A) Payback period for the machine= 3.5 years
(B) Simple rate of return for the machine= 87.5%
Explanation:
Alesu corporation is considering purchasing a machine that would cost $283,850
The useful life is 5 years
The machine would reduce cash operating costs by $81,100 per year
The salvage value is $107,100
(A) The payback period for the machine can be calculated as follows
= cost/amount of cash flow
= 283,850/81,100
= 3.5 years
(B) The simple rate of return for the machine can be calculated as follows
First we calculate the depreciation expense
= 283,850-107,100/5
= 176,750/5
= 35,350
Annual incremental income= cost savings -depreciation expenses
= 283,850-35,350
= 248,500
Simple rate of return = annual incremental income/cost × 100
= 248,500/283,850 × 100
= 0.875 × 100
= 87.5%
Answer:
the weighted mean price per share is $38.76
Explanation:
The computation of the weighted mean price per share is given below:
= (200 shares × $37 per share + 270 shares × $36 per share + 490 shares × $41 per share) ÷ (200 shares + 270 shares + 490 shares)
= ($7,400 + $9,720 + $20,090) ÷ (960 shares)
= $37,210 ÷ 960 shares
= $38.76
Hence, the weighted mean price per share is $38.76
Answer:
B. $83,000
Explanation:
Inventory value at adoption = $50,000
Increase in inventory using base year price = $30,000
Current year Price increase = 10%
Increase price = $30,000 + ( $30,000 x 10% )
Increased price inventory = $30,000 + $3,000
Increased price inventory = $33,000
Amount of Inventory reported on balance = Inventory value at adoption + Increase price Inventory
Amount of Inventory to be reported on balance = $50,000 + $33,000
Amount of Inventory to be reported on balance = $83,000