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horsena [70]
2 years ago
8

The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $21,000,

would be replaced by a new machine. The new machine would be purchased for $420,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $145,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
Business
1 answer:
Nadya [2.5K]2 years ago
6 0

Answer: 18.8%

Explanation:

Simple rate of return on investment = Incremental net operating income / investment

Incremental net income = Operating savings - Annual cost

= 145,000 - 420,000/6 years

= $75,000

Net investment = Cost of new machine - salvage value of old

= 420,000 - 21,000

= $399,000

Return on investment = 75,000/399,000

= 18.8%

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Inventory 12/31/17 $59,030 Cost of Goods Sold $224,679 Common Stock 76,110 Selling Expenses 16,230 Retained Earnings 45,580 Admi
Pavlova-9 [17]

Answer:

Prepare closing entries for Wildhorse Co. on December 31, 2017

Explanation:

Sales revenue         417.650  

Sales discount                  15.020

Cost of goods                224.679

Selling expense                    16.320

Administrative expense   38.719

Income tax expense          30.480

sales return and allowance 11.914  

retained earnings                  104.346

5 0
3 years ago
Suppose the town of boone has a total population of 50,000 people. of those, 45,000 people are employed. there are 1,000 full-ti
slega [8]
Population - 50,000
Employed - 45,000
Students not looking for work - 1,000

To calculate Boone's unemployment rate you'll use the formula: 
Unemployment rate = number of people unemployed / labor force

Those that fall into the unemployment category are those that are not working but are actively looking/wanting to work. Students, stay-at-home moms etc that are not wanting to work, though unemployed, to not fall into this category.

The labor force is made up of everyone willing and able to work.

First, let's subtract the students who are not looking for work from the population so get the labor force. 50,000 - 1,000 = 49,000 (labor force)

Next, to get the number of people unemployed let us subtract the labor force of 49,000 by those already employed of 45,000. 49,000 - 45,000 = 4,000

Finally, we are able to calculate the unemployment rate of Boone. 
Unemployment rate = number of people unemployed / labor force
Unemployment rate = 4,000/49,000= .081 multiply by 100 to get the percentage. 8.1%
Unemployment rate of Boone is 8.1%
3 0
3 years ago
"Vaughn Corporation is considering the issue of commercial paper and would like to know the yield it should offer on its commerc
Naddik [55]

Answer:

7.6 percent

Explanation:

Vaughn should offer 7.6 percent on its commercial paper.

This is calculated by adding the 0.2 credit risk premium to 0.1 percent liquidity premium + 0.3 percent tax adjustment + 7 percent annualized t bills rate.

= 0.1 + 0.2 + 0.3 + 7

= 7.6

Based on this Vaughn would offer 7.6 percent on its commercial paper.

6 0
3 years ago
The manufacturer must lead the channel design process regardless of the relative market power and financial strength of the memb
katrin [286]

Answer:

The statement is false

Explanation:

Channel design process is the one which is defined as those decisions that involve the development of the new marketing channels where the modification of the existing channels or none had existed before, which requires the market power as well as the financial strength of the members of the supply chain.

Therefore, the manufacturer could lead the process of the design process irrespective of the financial strength of members as well as the market power.

6 0
3 years ago
Which of the following is not true of a budget
Anna71 [15]

I believe the answer is B

5 0
3 years ago
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