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
Alla [95]
3 years ago
8

"Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $522,000, a 3

year life, and no salvage value. If the accounting rate of return for the project is 6%, what is the annual increase in net cash flow
Business
1 answer:
Vlad [161]3 years ago
4 0

Answer:

$31,320.00

Explanation:

The formula for accounting rate of return is the annual net cash flow divided by the initial investment.

If the initial investment was $522,000 and the accounting rate of return is computed to be 6% per year, hence the annual increase in cash flow accruing from the investment can be calculated by changing the subject of the formula.

ARR=annual increase in cash flow/initial investment

ARR is 6%

initial investment is $522,000

annual increase in cash flow?

6%=annual increase in cash flow/$522,000

annual increase in cash flow=6%*$522,000= $31,320.00  

You might be interested in
Leupold & Stevens, Inc., makes Leupold scopes for rifles and has introduced a new scope that has the quality and performance
user100 [1]

Answer:

Penetration pricing

Explanation:

Is a marketing strategy used by businesses to attract customers to a new service or product.  By offering lower price during its initial offering, thats the way they do.   The lower price, helps a new producto or service penetrate the market and attract customers .

6 0
3 years ago
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8
Soloha48 [4]

Answer:

The journal entries for all transactions are as follows;

Explanation:

June 8. Bad Debts Expense            Dr.$8,440

             Accounts-Receivable-Kathy Quantel  Cr.$8,440

Aug 14. Bank                Dr.$3,000

             Bad Debt Expense Dr. $9,500

             Accounts Receivable-Rosalie Oakes            Cr.$12,500

Oct 16. Accounts-Receivable-Kathy Quantel    Dr.$8,440

            Bad Debts Expense                               Cr. $ 8,440

         

           Cash                         Dr. $8,440

           Accounts-Receivable-Kathy Quantel   Cr.$8,440

Dec 31.   Bad debt Expense     Dr. 24,955

              Account Receivable-Wade Dolan Cr.$4,600

              A/R-Greg Gagne                             Cr.$3,600

              A/R-Amber Kisko                             Cr.$7,150

             A/R- Shannon Poole                         Cr.$2,975

             A/R-Niki Spence                                Cr.$6,630

6 0
3 years ago
Jefferson Handyman Services has total assets for the year of $ 15 comma 400 and total liabilities of $ 8 comma 680. Requirements
Novay_Z [31]

Answer:

1. $6,720

2. $17,530

Explanation:

In this question, we use the accounting equation which is shown below:

Total assets = Total liabilities + Stockholder's equity

1. The equity value is computed by

$15,400 - $8,680 = Stockholder's equity

So, stockholder equity is $6,720

2. Since assets is assets is increased by $5,000 and the equity is decreased by $3,850

So, updated assets = $15,400 + $5,000 = $20,400

And, the updated equity is $6,720 - $3,850 = $2,870

So, the total liabilities equal to

= $20,400 - $2,870

= $17,530

3 0
2 years ago
Aves Treats, Inc. produces bird seeds. All direct materials used in the production process are added at the beginning of the man
Ipatiy [6.2K]

Answer:

950 units

Explanation:

Given that

For June month

Number of units in beginning work in process inventory = 0

Number of units started during the month = 750

Total number of units transferred to finished goods = 600

For July month

Number of units in beginning work in process inventory = 150

Number of units started during the month = 950

Total number of units transferred to finished goods = 850

The percentage ratio is also given

So, The computation of the number of equivalent units of direct materials produced on July month is shown below:

= Number of units started during the month

= 950 units

The number of units started = number of direct material produced

i.e 950 units = 950 units

4 0
3 years ago
All of the following statements are true, except:a. A firm can make money from inflation by paying bills and wages as late as po
Lesechka [4]

Answer:

The incorrect statement is letter "B": If a firm is currently holding a lot of assets in cash, it would benefit from inflation.

Explanation:

Inflation is the economic phenomenon that takes place in the market as a result of a rise in the overall prices. One of the direct causes of inflation is a surplus in demand since it provokes firms to increase the price of the goods or services they offer in an attempt to decrease demand levels but, in given scenarios, the demand continues increasing.

Among the effects of inflation, <em>we can identify the decrease of individuals' and organizations' buying power. The value of money decreases making it inconvenient to have cash handy for both individuals and companies.</em>

5 0
3 years ago
Other questions:
  • You just heard that a​ well-known manufacturer in a different industry segment is going to enter your market with a product that
    5·1 answer
  • Chewy Candy has a beginning inventory of $1,000 with a retail value of $1,800. June purchases were $3,000, with a retail value o
    5·1 answer
  • An investor is forming a portfolio by investing $50,000 in stock A which has a beta of 1.50, and $25,000 in stock B which has a
    13·1 answer
  • How does the economy of Cuba differ from the economy of North Korea? In North Korea, the government’s control of the economy has
    8·1 answer
  • White Lion Homebuilders is considering investing in a one-year project that requires an initial investment of $500, 000. To do s
    6·1 answer
  • When using a distributed workforce, collaborators are chosen based on ____.?
    9·1 answer
  • Goodwin Technologies, a relatively young comply, has been wildly successful but has yet to pay a dividend. An analyst forecasts
    14·1 answer
  • PLEASE HELP!
    7·2 answers
  • Self esteem is the part of self concept that involves evaluations of ?
    8·1 answer
  • Hey guys I know this isn’t a math or any school related thing but can y’all please subscribe to my channel . Please
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!