Answer:
1) For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale.
- original cost = $9,800
- accumulated depreciation = $1,020
- cash received = $5,980
2) Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities?
- the loss on sale of equipment ($2,800) should be added to the cash flows from operating activities.
3) What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities?
- the cash received ($5,980) should be added to the cash flow from investing activities
Explanation:
equipment cost = beginning equipment - ending equipment = $20,000 - $10,200 = $9,800
equipment's accumulated depreciation = beginning accumulated depreciation + depreciation expense - ending depreciation = $1,950 + $860 - $1,790 = $1,020
book value = $9,800 - $1,020 = $8,780
cash received = book value - loss = $8,780 - $2,800 = $5,980
Answer:
The contribution margin ratio is 35%
Explanation:
The formula for contribution is given below:
Contribution margin = revenue − variable costs.
Contribution margin ratio is given as:
(Sales – variable expenses) ÷ Sales
In this case,contribution is given as 1000*($20-$13), in other words selling price per unit minus variable cost multiplied by number of units sold.
Contribution is $7000
contribution margin ratio =$7000/($20*1000)
=0.35 or 35%
The implies that Hollis Industries makes a contribution of 35% per unit of output sold,hence, the contribution contributes towards covering fixed costs and making profit overall
Answer:
A minimum wage exists so that when people are looking up their career field they see what they should get paid.
Explanation:
Answer:
Cost of retained earnings = 0.13
Explanation:
given data
(D1) = $1.80
current price = $36
growth rate = 9 percent
solution
we get here Cost of retained earnings (Ke) that is express as
Cost of retained earnings = ( D1 ÷ P ) + g ................1
here P is price and g is growth rate
put here value and we get
Cost of retained earnings = (1.80 ÷ 36 ) + 0.08
Cost of retained earnings = 0.13
<u>Solution and Explanation:</u>
The correct answer is I, II, III, and IV
The reason behind is that joint cost is always related to the multifarious products. Joint expense is the assembling cost brought about on a joint creation process which takes regular sources of info however at the same time delivers various items called joint-items, for example, preparing of raw petroleum at the same time yields gas, diesel, stream fuel, greases and different items.
So, as to apportion expenses to such joint items, bookkeepers need to utilize an appropriate cost portion technique on a predictable premise. The joint cost alludes to that cost which is brought about before the split-off point on the creation or assembling of numerous items, by expending similar data sources or factors of creation.
