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GarryVolchara [31]
3 years ago
14

Kelly's Corner Bakery purchased a lot in Oil City six years ago at a cost of $98,700. Today, that lot has a market value of $128

,900. At the time of the purchase, the company spent $6,500 to level the lot and another $12,000 to install storm drains. The company now wants to build a new facility on the site at an estimated cost of $494,200. What amount should be used as the initial cash flow for this project?
Business
1 answer:
a_sh-v [17]3 years ago
4 0

Answer:

The $623,100 is the amount which  should be used as the initial cash flow for this project

Explanation:

The computation of the initial cash flow is shown below:

= Estimated cost of a new facility on the site + market value of a lot

= $494,200 + $128,900

= $623,100

The asset value should be recorded in the market value so we took the estimated cost and the market value in the calculation part.

The other cost which is given in the question is irrelevant. Thus, it is not considered in the computation part.

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The book balance in the checking account of Kyri Enterprises as of November 30 is $2,964. The bank statement shows an ending bal
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Answer:

1)

reconciliation of bank balance:

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+ deposits in transit 11/29 $125

+ deposits in transit 11/30 $200

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- outstanding check N. 324 $105

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adjusted bank balance $2,674

reconciliation of checking account:

checking account balance $2,964

+ error on Check N. 321 $20

- NSF check $185

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- bank fees $25

adjusted checking account $2,674

2)

To correct the error on Check N. 321

Dr Cash 20

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To record NSF check

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To record ATM withdrawal

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4 0
3 years ago
The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is ca
sineoko [7]

Answer:

The answer is consumer's surplus

Explanation:

Consumer's surplus is the difference between what the consumer or buyer is willing to pay and the amount he or she eventually paid.

For example, Mr A is willing to pay $100 for a product and the producer is willing to sell for $90. After much negotiation between mr A and the seller, he eventually paid $85. What he paid was lower than what he was willing to pay before.

So the consumer surplus is $100 - $85 = $15

3 0
3 years ago
What affects the egg coagulation in custards and creams!
Lapatulllka [165]
What affects the egg coagulation in custards and creams!
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2 years ago
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Which of these is the result of a government-regulated natural monopoly?
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3 years ago
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Peng Company is considering buying a machine that will yield income of $2,100 and net cash flow of $19,500 per year for three ye
irina [24]

The accounting rate of return for this investment given its income, cost of the machine and the salvage value is 8.05%.

<h3>What is the accounting rate of return?</h3>

The accounting rate of return is a capital budgeting method used to determine the level of profitabiliy of an investement.

Accounting rate of return = Average net income / Average book value

Average book value = (cost of equipment - salvage value) / 2

Average book value = (59700 - 7500) / 2 = $21,600

Accounting rate of return = $2100 / 21600 = 8.05%

To learn more about Accounting rate of return, please check: brainly.com/question/13034173

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