Answer:
Explanation:
Three types of depreciation relevant are straight line depreciation and number of units basis and double declining method
Straight line
Machine cost - 206,800
salvage value - 16000
Depreciation- 190,800
Useful life - 4 years -
Annual depreciation = 47,700.00
Year 1= 47,700.00
Year 2= 47,700.00
Year 3= 47.700.00
Year 4- 47,700.00
Total= 190,800
B)
Unit basis
Estimated unit = 477000
Actual units produced = 122700+123000+120500+120800= 487,000
Excess unit produced = 487000-477000=10000
Year 1 = 122700/477000*190800= 49,079.99
Year 2= 123000/477000*190800= 49,199.99
Year 3 = 120500/477000*206800= 48,200.00
Year 4 =120800/477000*206800=48,320,00
Total =$194,800
c)
Double decline method
rate = 1/4*2*100=50%
Year 1= 50%* 206800= 103400.00
Year 2 = 50%* 103400= 51700.00
Year 3= 50% * 51700= 25850.00
Year 4 = 50%* 25850=12925.00
total =193875.
Answer: Price of stock at year end =$53
Explanation:
we first compute the Expected rate of return using the CAPM FORMULAE that
Expected return =risk-free rate + Beta ( Market return - risk free rate)
Expected return=6% + 1.2 ( 16%-6%)
Expected return= 0.06 + 1.2 (10%)
Expected return=0.06+ 0.12
Expected return=0.18
Using the formulae Po= D1 / R-g to find the growth rate
Where Po= current price of stock at $50
D1= Dividend at $6 at end of year
R = Expected return = 0.18
50= 6/ 0.18-g
50(0.18-g) =6
9-50g=6
50g=9-6
g= 3/50
g=0.06 = 6%
Now that we have gotten the growth rate and expected return, we can now determine the price the investors are expected to sell the stock at the end of year.
Price of stock = D( 1-g) / R-g
= 6( 1+0.06)/ 0.18 -0.06
=6+0.36/0.12
=6.36/0.12= $53
Answer:
The Journal entries are as follows:
(a) On February 1,
Allowance for doubtful accounts Dr. $8,800
To Account receivable-Oakley Co $1,900
To Account receivable-Brookes Co $6,900
(To record write off)
(b) On June 5,
(i)
Account receivable-Oakley Co. Dr. $1,900
To Allowance for doubtful accounts $1,900
(To record amount reinstated)
(ii)
Cash A/c Dr. $1,900
To Account receivable-Oakley CO $1,900
(To record cash received)
I need more information to properly answer this question.
This is an example of a people constraint. A constraint is something that holds you back from completing something. In this scenario, there aren't enough people available to complete all of the projects Rachel is wanting to have completed so there is a people restraint with regards to completing activities.
