1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
madam [21]
3 years ago
14

A company is considering purchasing a machine that costs $400,000 and is estimated to have no salvage value at the end of its 8-

year useful life. If the machine is purchased, annual revenues are expected to be $100,000 and annual operating expenses exclusive of depreciation expense are expected to be $38,000. The straight-line method of depreciation would be used. The cash payback period on the machine is Question 9 options: 8.0 years. 7.5 years. 6.5 years. 3.2 years
Business
1 answer:
AveGali [126]3 years ago
4 0

Answer:

6.5 years

Explanation:

Cost of Asset/Net Income = $400,000/Net Income

Net Income = Revenue - Operating expenses (excluding depreciation)

= $100,000 - $38,000 = $62,000

=$400,000/$62,000

=6.45

=6.5 years

You might be interested in
Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for
stellarik [79]

Answer:

Winslow Inc.

a. No. I do not agree with management's decision and conclusions.  Eliminating the running shoes line increased the company-wide loss to $112,600 from a profit of $7,900.

b. Variable Costing Income Statements:

1                                   Cross Training  Golf Shoes  Running Shoes  Total

2 Revenues                      $850,000     $700,000    $635,000  $2,185,000

3 Variable costs:

Cost of goods sold             284,500       248,400      298,500       831,400

Selling and administrative  293,100        175,500       216,000      684,600                      

Total                                    577,600       423,900       514,500    1,516,000

4 Gross profit                   $272,400     $276,100     $120,500   $669,000

5 Fixed costs:

Cost of goods sold             128,500         90,300       120,500      339,300

Selling & administrative      95,900          82,400       143,500       321,800

Total                                   224,400        172,700      264,000        661,100

6 Income (Loss) from       $48,000      $103,400    $(143,500)       $7,900

c. Eliminating the line only eliminated the variable costs of goods sold and selling and administrative expenses.  The fixed costs were not changed with the elimination.  Therefore, eliminating the running shoes line increased the company-wide loss to $112,600 from a profit of $7,900.

Explanation:

a) Data and Calculations:

Winslow Inc.

Product Income Statements—Absorption Costing

For the Year Ended December 31, 20Y1

1                                   Cross Training  Golf Shoes  Running Shoes  Total

2 Revenues                      $850,000     $700,000      $635,000

3 Cost of goods sold           413,000       338,700         419,000

4 Gross profit                    $437,000     $361,300       $216,000

5 Selling & administrative

 expenses                         389,000       257,900         359,500

6 Income (Loss) from        $48,000      $103,400      $(143,500)

1                                   Cross Training  Golf Shoes  Running Shoes  Total

2 Revenues                      $850,000     $700,000    $635,000  $2,185,000

3 Variable costs:

Cost of goods sold             284,500       248,400      298,500       831,400

Selling and administrative  293,100        175,500       216,000      684,600                      

Total                                    577,600       423,900       514,500    1,516,000

4 Gross profit                   $272,400     $276,100     $120,500   $669,000

5 Fixed costs:

Cost of goods sold             128,500         90,300       120,500      339,300

Selling & administrative      95,900          82,400       143,500       321,800

Total                                   224,400        172,700      264,000        661,100

6 Income (Loss) from       $48,000      $103,400    $(143,500)       $7,900

Eliminating the running shoe line:

1                                   Cross Training  Golf Shoes          Total

2 Revenues                      $850,000     $700,000      $1,550,000

3 Cost of goods sold:

Variable costs                     284,500       248,400          532,900

Fixed costs                          128,500         90,300           339,300

Total                                     413,000       338,700           872,200

4 Gross profit                   $437,000      $361,300        $677,800

5 Selling & administrative  expenses:

Variable costs                    293,100         175,500         468,600

Fixed costs                          95,900          82,400          321,800

Total                                  389,000        257,900         790,400

6 Income (Loss) from       $48,000      $103,400       ($112,600)

3 0
3 years ago
What is the norming stage
gogolik [260]
Norming stages known as forming storming and performing psychologist bruce tuckman who created this memorable phase later added a fifth stage.
8 0
3 years ago
When Theo complained out loud that the hotel restaurant did not serve breakfast late enough in the morning, a hotel worker overh
11111nata11111 [884]

Answer:

The correct answer is E. respond quickly

Explanation:

Respond quickly is a great strategy to gain customers' fidelity.

7 0
3 years ago
2.3 The Ledger and Posting
blsea [12.9K]

The net change in the Cash account balance from these three transactions is $30,000

What is the company's net change in cash account balance?

The net change in company's cash balance is the excess of its cash inflows from sources minus its cash outflows from all sources, in other words, the net change in cash balance from the three transactions is the funds raised long-term debt issuance and the amounts paid for equipment and raw materials

net change in cash balance=$200,000-$150,000-$20,000

net change in cash balance=$30,000

Find out more cash flow statement on:brainly.com/question/14942025

#SPJ1

8 0
2 years ago
Bramble sells softball equipment. On November 14, they shipped $4300 worth of softball uniforms to Novak Middle School, terms 3/
Dafna1 [17]

Answer:

$3,850

Explanation:

Calculation to determine What amount will be recognized as accounts receivable, net on the balance sheet as of November 30

Using this formula

Accounts receivable=Goods shipped -Defective merchandise return

Let Plug in the formula

Accounts receivable=$4,300-$450

Accounts receivable=$3,850

Therefore What amount will be recognized as accounts receivable, net on the balance sheet as of November 30 is $3,850

5 0
3 years ago
Other questions:
  • The basic goal in dealing with the problem of scarcity is
    6·1 answer
  • Economists have used the ultimatum game and the dictator game in experiments designed to determine whether consumers believe it
    14·1 answer
  • Outline two ways in which Britax reduced resistance to change.
    13·1 answer
  • Social media has evolved in such a way that users expect to use SM applications without paying for them. SM firms want to build
    7·1 answer
  • If (1) the cost of manufacturing computers decreases and (2) at the same time the quality improves, making computers more useful
    12·1 answer
  • Inflation in the developing country of terbia has been rising over the last few years and is currently at a very high level. two
    5·1 answer
  • ​ Which of the following is FALSE?
    6·1 answer
  • By taking the consumer journey and consumer expectations into consideration in the development, integrated marketing communicati
    13·1 answer
  • You are trying to determine how much money to save (invest) each year in your 401(k) Plan to fund your retirement in order to pa
    12·1 answer
  • On January 1, 20X4, Parke Company borrowed $360,000 from a major customer evidenced by a non-interest bearing note due in three
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!