A marketing plan and operating budget are two components of

A company is considering two capital investments. Each requires an initial investment of $15,000 and has a 4 year useful life. I

yaroslaw [1]

Answer:

3 years

Explanation:

The computation of the payback period is shown below:

Payback period = Initial investment ÷ Net cash flow

where,

Initial investment is $15,000

And, the net cash flow would be

= Year 1 + year 2 + year 3 + year 4

= $5,000 + $5,000 + $5,000 + $5,000

= $20,000

As we see that the net cash flow is recovered in three years that means net cash flows and the initial investment are equal

So,

Payback period would be

= $15,000 ÷ $15,000

= 3 years

7 0

2 years ago

At January 1, 2019, Deer Corp. has beginning inventory of 2,000 surfboards. Deer estimates it will sell 10,000 units during the

coldgirl [10]

Answer:

The correct answer is $1,881,600

Explanation:

According to the scenario, the computation of the given data are as follows:

Unit sells = 10,000 units

Growth rate = 12%

Selling price = $150 per unit

Costing = $100 per unit

So, we can calculate the budget sales revenue by using following formula:

Budget sales unit for quarter 3 = (10,000 × 112%) × 112% = 12,544

So, budget sales amount for quarter 3 = 12,544 × $150

= $1,881,600

4 0

2 years ago

Which of the following is a nonmanufacturing business where process costing would most likely be used? An auto body shop. A furn

solmaris [256]

All of them are the non-manufacturing business where process costing would most likely be used.

Explanation:

All are non-manufacturing business which are as follows,

An auto body shop.
A furniture repair shop.
A laboratory that tests water samples for lead A tailoring shop.
A beauty shop.
Non-manufacturing business costs refers to those business where it is incurred outside the factory or production unit
Non-manufacturing costs includes,
selling expenses
general expenses
Selling Expenses
It is also called as selling and distribution expenses.
Non-manufacturing expenses have no impact on the production cost of the company due to their period costs.

7 0

2 years ago

Phips Co. purchases 100 percent of Sips Company on January 1, 20X2, when Phips' retained earnings balance is $320,000 and Sips'

Taya2010 [7]

Answer:

Phips' post-closing retained earnings balance on December 31, 20X2 = $577,000

Explanation:

Note: When 100% shares of a company is acquired it is treated as subsidiary and for its accounting equity method is used.

In that case all balances of subsidiary are added to balances of Parent company.

But if any dividend is received then such value is deducted from carrying value of investment, and any share in profit will be added to carrying value.

All the retained earnings balance is accumulated together of both companies.

Therefore closing balance shall be

Retained earnings balance of Sips at year end

= $120,000 + $20,000 - $8,000 = $132,000

Year end balance of Phips Alone

= $320,000 + 125,000 = $445,000

Total Retained Earnings at year end = $132,000 + $445,000 = $577,000

3 0

2 years ago

At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, no stock was issued and the comp

viva [34]

Answer:

$10,000

Explanation:

As provided no equity is issued, therefore,

Common stock + Net income = Stockholder's equity

We know common stock = $70,000

Further there might be some dividend paid, which shall be deducted from net income to compute total value of Stockholder's equity.

Therefore,

$70,000 + $18,000 - Dividend = $78,000

$88,000 - $78,000 = Dividend = $10,000

Therefore, dividends paid during the month = $10,000

5 0

2 years ago