Answer:
$57,000
Explanation:
<u><em>Step 1 : Depreciation Rate</em></u>
Depreciation Rate = (Cost - Residual Value) ÷ Estimated Production
therefore,
Depreciation Rate = $14.00 per machine hour
<u><em>Step 2 : Depreciation expenses</em></u>
Depreciation expense = Depreciation Rate x Annual production
therefore
Year 1 = $42,000
Year 2 = $56,000
Year 3 = $70,000
Total = $168,000
<em><u>Step 3 : Book Value</u></em>
Book Value = Cost - Accumulated Depreciation
= $225,000 - $168,000
= $57,000
Conclusion :
book value at the end of year 3 is $57,000
Answer:
Garrett Co. cash flows from operating activities is $61,000.
Explanation:
Garrett Co.
Statement of cash flows (extract)
Net income $56,000
Add Loss on disposal of equipment 5,000
Cash flows from operating activities $61,000
Loss on disposal of the equipment was calculated as Proceeds - net book value, that is $15,000 - $20,000.
Note that purchase of equipment belongs to investing part of the cash flows while proceed from stock issuance and dividend payment belong to financing part of the cash flows
Answer:
The largest monthly payment he can afford for the T.V set in order to be kept within a safe load of 20% is $156
Explanation:
Before we calculate, let us extract the key information from this question:-
*** David's monthly net income is $1,360
*** David pays a monthly rent of $450
*** He is paying off a student loan which costs him $116 per month.
*** He intends purchasing a new T.v set
*** We are simply required to determine the largest monthly payment that David can afford for the T.v set in order for him to be kept within a safe load of 20%.
In order to calculate the largest monthly payment that he can afford for the T.v set so as to be kept within a safe load of 20%, we will need to determine the actual amount that is twenty percent of his net income. If his net income is $1,360 then twenty percent of it is:
20/100 × 1360
= 27200/100
= $272
All we need to do now to find the largest monthly payment he can afford for the TV set is to subtract the student loan that he is paying off monthly ($116) from twenty percent of his net income ($272). That is:-
$272 - $116 = $156
Therefore the largest monthly payment that David can afford for the television set in order for his credit card payments and student loan to keep him within a safe debt load of 20% is $156.
