Compare the mix of assets, liabilities, capital, revenue, and expenses within a company over a period of time or between companies within a given industry without respect to size.

6 0

3 years ago

A company is considering the purchase of a new machine for $48,000. Management predicts that the machine can produce sales of $1

dolphi86 [110]

Answer:

Accounting rate of return is 10%

Explanation:

Given data

new machine = $48,000

sales = $16,000

time = 10 year

depreciation = $4,000 / year

factory overhead = $8,000 + depreciation $4,000

net income = $2400

tax rate = 40%

to find out

accounting rate of return for the machine

solution

we know that

Accounting rate of return = after tax net income / average investment

so here we know net income after tax = $2400

so we find investment first

Average investment = (Initial investment) / 2

Average investment = 48000 / 2 = $24000

Accounting rate of return = after tax net income / average investment

Accounting rate of return = 2400 / 24000 = 0.1 = 10%

Accounting rate of return is 10%

6 0

4 years ago

The current sections of Culver Corporation's balance sheets at December 31, 2021 and 2022, are presented here. Culver Corporatio

natta225 [31]

Answer:

Net Cash Provided by Operating Activities is $286,000

Explanation:

Culver Corporation's

Partial Statement of Cash flows

For the year ended December 31, 2022

Cash Flow from Operating Activities

Net Income $229,500

Adjustment to reconcile net income to

net cash provided by operating activities

Depreciation Expenses $40,500

(Non-cash expense)

Decrease in Accounts Receivables $13,500

(133,500 - 120,000)

Decrease in Inventory $6,000

(258,000 - 252,000)

Increase in Prepaid Expenses -$7,500

(33,000 - 40,500)

Increase in Accrued Expenses Payable $15,000

(22,500 - 7,500)

Decrease in Accounts Payable -$10,500 $57,000

(127,500 - 138,000)

Net Cash Provided by Operating Activities $286,000

4 0

4 years ago

In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette (DCC) player.

9966 [12]

Answer:

compatibility

Explanation:

The Digital Compact Cassette is an innovation that is showing compatibility because it is not only bringing something new to the customer (the ability to record and playback), but also giving the customer the possibility of playing old cassette tapes in the new format.

In simple words, the DCC is compatible with older tapes, which gives it no only a value as a new product, but also a value as a product that replaces and old product (which is not necessarily the same, many new products do not replace old product, the old product simply disappears).

4 0

4 years ago