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love history [14]
3 years ago
12

Harrison Corporation is studying a project that would have an eight-year life and would require a $300,000 investment in equipme

nt which has no salvage value. The project would provide net operating income each year as follows for the life of the project: Sales $500,000 Less cash variable expenses 200,000 Contribution margin 300,000 Less fixed expenses: Fixed cash expenses $150,000 Depreciation expenses 37,500 187,500 Net operating income $112,500 The company's required rate of return is 10%. The payback period for this project is closest to:
Business
1 answer:
zheka24 [161]3 years ago
5 0

Answer:

The payback period for this project is closest to 2 years

Explanation:

Initial investment = $300,000

Sales = $500,000

Cash variable expenses = ($200,000)

Contribution margin = 300,000

Fixed cash expenses = $150,000

Depreciation expenses = $37,500

Total Fixed expenses: $150,000 + $37,500 = ($ 187,500 )

Net operating income = $112,500

Annual cash inflows = Net operating income + Depreciation

= $112,500 + $37,500

= $150,000

Payback period = Initial investment ÷ Annual cash inflows

= $300,000 ÷ $150,000 = 2 years

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A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the 10-show season
swat32

Answer:

Dr cash    $375,000

Cr unearned revenue      $375,000

Dr unearned revenue     $37,500

Cr revenue                                    $37,500

Explanation:

The total amount realized from the sale of tickets is  $375,000($250*1500)

However,the cash proceeds should be debited to cash while it is also credited to unearned revenue

The revenue from fulfilling the performance obligation=1/10*$375,000=$37,500

The $37,500 is debited to unearned revenue and credited to sales revenue as that amount has now been earned

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ch4aika [34]

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What do capital controls prevent?

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disrupting its economy.

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Capital control entails when a body that regulates money in a country controls the cash inflow and outflow

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3 years ago
Which of the following goals is most effective?
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3 years ago
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The common flaw that was found in research funded by pharmaceutical companies was a lack of transparency.

<h3 /><h3>Why is transparency needed in the pharmaceutical industry?</h3>

It is essential that there is greater awareness, control and review of pharmaceutical research, as this industry directly impacts the health and quality of life of individuals, and must be an ethical and accessible means to the population.

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