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gayaneshka [121]
3 years ago
15

3) Compute the annual allowable depreciation using the straight line method for a machine that costs $86,000 to purchase and $7,

000 to install with a 6-year life and a $5,000 salvage value.
Business
1 answer:
iren [92.7K]3 years ago
7 0

Answer:

$14,333.33

Explanation:

Depreciation is the systematic allocation of the cost of an asset to P/l as a measure of use. It is added over the years as accumulated depreciation which is deducted from cost to get the net book value of the asset. Salvage value is the estimated realizable cost of an asset after its useful life.

Depreciation = (cost - salvage value)/useful life

Cost of an asset includes all cost incurred to make the asset available for use.

Depreciation = ($86000 + $7000 - $5000)/6

= $88000/6

= $14,333.33

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3 years ago
Consider the following financial statements about DANIEL Co. for the current year 2015
neonofarm [45]

Answer:

a.  For the Year Ended December 31, 2015

Cash flows from operating activities:  

Cash received from customers                15586

Cash paid to suppliers                              -10260  

Cash paid for operating expenses           -3910

Cash paid for interest                                -220

Cash paid for income taxes                       -560

Net cash flow from operating activities      636

<u>Working: </u>

Sales                                                       16000

Less: Increase in accounts receivable -380

Less: Decrease in unearned revenue   -34

Cash received from customers             15586

Cost of goods sold                                 10000

Add: Decrease in accounts payable      360

Less: Decrease in inventory                    -100

Cash paid to suppliers                             10260

Operating expenses                                 4000

Less: Noncash expenses  

Depreciation expense                                -150

Impairment loss                                          -200

Cash operating expenses                          3650

Add: Increase in prepaid expenses           80

Add: Decrease in accrued liabilities           180

Cash paid for operating expenses             3910

Interest expense                               200

Add: Decrease in interest payable  20

Cash paid for interest                      220

Income tax expense                               600

Less: Increase in income tax payable   -40

Cash paid for income taxes                   560

(b)        Partial Cash Flow Statement (Indirect Method)

             For the Year Ended December 31, 2015

Cash flows from operating activities

Net income                                                  1200

Adjustments to reconcile net

income to operating cash flows:  

Depreciation expense                   150  

Impairment loss                              200  

Increase in accounts receivable -380  

Decrease in inventory                     100  

Increase in prepaid expenses       -80  

Decrease in accounts payable      -360  

Decrease in accrued liabilities       -180  

Decrease in interest payable         -20  

Decrease in unearned revenue      -34  

Increase in income tax payable      40              -564

Net cash flow from operating activities          636

4 0
2 years ago
When gathering information which of the following task might you need to perform
JulsSmile [24]

Answer:

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6 0
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How much is the total consumer spending​
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Depends on the quality and quantity of goods
8 0
3 years ago
Assuming that the direct materials used are $1880000, compute the total manufacturing costs using the following information.
Scilla [17]

Answer:

D. $3240000.

Explanation:

Particulars                               Amount ($)        Amount ($)

Direct materials used                                          1,880,000

Direct Labor                                                         760,000

<u>Manufacturing Overheads </u>

Factory Utilities                          150,000

Indirect Labor                             50,000

Factory Depreciation                 <u>400,000</u>           <u>600,000</u>

Total Manufacturing cost                                  <u>$3,240,000</u>

6 0
2 years ago
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