What is the essential role of logistics in the channel.?

Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be

In-s [12.5K]

Answer: Machine B because it has the lower Present Value

Explanation:

<h2>Machine A</h2>

= Present Value of income - Present Value of Costs

Present value of Income;

Sold for $5,000 after 10 years.

= 5,000/ (1 + 8%)^10

= $2,315.97

Present Value of Costs;

Purchased for $48,000.

Maintenance of $1,000 per year for years.

Present value of maintenance= 1,000 * Present value factor of annuity, 10 years, 8%

= 1,000 * 6.7101

= $6,710.10

Machine A Present Value

= 2,315.97 - 6,710.10 - 48,000

= ‭-$52,394

<h2>Machine B</h2>

No salvage value.

Present Value of costs

Purchased for $40,000.

Present value of maintenance = (4,000 / (1 + 8%)^3) + (5,000 / ( 1 + 8)^6) + (6,000 / ( 1 + 8%)^8)

= -$9,567.79

Present Value = -40,000 - 9,567.79

= -$49,568

5 0

3 years ago

Prepare adjusting journal entries, as needed, for the following items. (If no entry is required for a transaction/event, select

Wewaii [24]

Answer:

Explanation:

The adjusting entries are shown below:

1. Supplies expense A/c Dr $370

To supplies A/c $370

(Being supplies account is adjusted)

The supplies expense is computed by

= Supplies balance - supplies on hand

= $570 - $200

= $370

2. Insurance expense A/c Dr $190

To Prepaid Insurance $190

(Being prepaid insurance is adjusted)

3. Salaries expense A/c $1,280

To Salaries payable A/c $1,280

(Being salary is adjusted)

The salaries expense is computed by

= Total five days × number of days ÷ total number of days

= $3,200 × (2 ÷ 5)

= $1,280

4. Electricity expense A/c Dr $270

To electricity payable A/c $270

(Being electricity usage is adjusted)

7 0

3 years ago

At year-end, Yates Company estimates that $1,500 of its accounts receivable balance is uncollectible. Yates uses the allowance m

erastova [34]

Answer:

debit to Bad Debts Expense and credit to Allowance for Doubtful Accounts

Explanation:

Based on the information provided for this scenario it can be said that the entry to record this adjusting entry would include a debit to Bad Debts Expense and credit to Allowance for Doubtful Accounts. Meaning that the bad debts expense is increasing while the same amount is being taken from the allowance for doubtful accounts. This is what the allowance method is used for, it provides an advance for uncollectible accounts, by setting aside money in a reserve account.

4 0

2 years ago

Discuss reasons why a business needs funding ?

castortr0y [4]

Answer:

Firms need finance to:

start up a business, eg pay for premises, new equipment and advertising.

run the business, eg having enough cash to pay staff wages and suppliers on time.

expand the business, eg having funds to pay for a new branch in a different city or country.

3 0

2 years ago

Explain what happens when markets do not have enough competition.

MatroZZZ [7]

Answer:

The price will be higher and output lower in absence of competition.

Explanation:

When the market does not have enough competition, it provides a certain degree of market power to the existing producers. They are able to regulate prices and output.

It is likely that the suppliers will provide a fewer quantities of goods at a higher price, in order to maximize their profits. The socially optimal level of output will not be produced in the market.

The resources will not be efficiently allocated and deadweight loss will exist.

3 0

3 years ago