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Inga [223]
3 years ago
9

You are comparing two companies in the same industry. You have determined that Gore Corp. depreciates its plant assets over a 40

-year life, whereas Ross Corp. depreciates its plant assets over a 20-year life. Discuss the implications this has for comparing the results of the two companies.
Business
1 answer:
love history [14]3 years ago
5 0

Answer:

Gore Corp. is depreciating over a longer term than Ross Corp. This means that on a yearly basis, they will have less depreciation expenses. This would give them a higher net income than Ross Corp but as a result they will then have to pay a higher tax.

Ross Corp on the other hand will be depreciating over a shorter term so this would mean that they are recognizing a higher depreciation expense per year. This would mean that their net income will be lower and by extension their taxes will be lower as well.

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No variable overhead is incurred or budgeted. The expected cash balance at the end of the current year is $3,500. Disbursements
elena-s [515]

Answer:

$23,000

Explanation:

The computation of the budgeted excess or (deficiency) in cash flows is shown below:-

Budgeted excess or (deficiency) in cash flows at the end of the first quarter =  Cash Inflows - Cash Outflows

=$60,000 - $25,000 - ($8,000 - $1,000) - $5,000

= $60,000 - $25,000 - $7,000 - $5,000

= $23,000

Therefore for computing the Budgeted excess or (deficiency) in cash flows at the end of the first quarter we simply applied the above formula.

8 0
3 years ago
The current stock price of Alcoco is $70, and the stock does not pay dividends. The instantaneous risk-free rate of return is 6%
vekshin1

Answer:

a) 34 is the answer hope this helps

3 0
3 years ago
Wasson Company reported the following year-end information: Beginning work in process inventory $ 35,000 Beginning raw materials
Dennis_Churaev [7]

Answer:

cost of work in process= $890,000

Explanation:

Giving the following information:

Beginning work in process inventory $ 35,000

Beginning raw materials inventory 18,000

Ending work in process inventory 38,000

Ending raw materials inventory 15,000

Raw materials purchased 560,000

Direct labor 210,000

Manufacturing overhead 120,000

To calculate the total cost of work in process, we need to use the following formula:

cost of work in process= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP

Direct materials used= beginning inventory + purchases - ending inventory

Direct materials used= 18,000 + 560,000 - 15,000= 563,000

cost of work in process= 35,000 + 563,000 + 210,000 + 120,000 - 38,000= 890,000

4 0
3 years ago
Possible reasons for additional students accommodation on a project proposal ​
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Answer:

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Explanation:

Hope this was helpful

7 0
3 years ago
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Arte-miy333 [17]

Answer:

d. $394,767

Explanation:

For computing the amount of deposit at the end we need to apply the future value formula i.e to be shown in the attachment

Given that,  

Present value = $0

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The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after applying the above formula, the future value is $394,767

8 0
3 years ago
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