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artcher [175]
3 years ago
7

Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000. The equipment has an estimated useful lif

e of eight years. Estimated annual sales and operating expenses related to the pasta equipment follow:
Annual sales $ 88,000
Labor costs (72,000)
Depreciation of equipment (6,000)
Operating income $ 10,000
Income taxes (4,000)
Net income $ 6,000
The estimated payback of the investment in the pasta equipment is:
a. 3.0 years.
b. 4.0 years.
c. 6.0 years.
d. 8.0 years.
Business
1 answer:
suter [353]3 years ago
5 0

Answer:

b. 4.0 years.

Explanation:

The computation of the estimated payback period is given below:

The annual cash inflow is

= Net Income + Depreciation of equipment

= $6000 + $6000

= $12,000

Now The payback period of this investment is

= Investment ÷ Annual cash inflow

= $48,000 ÷ $12,000

= 4 years

hence, the option b is correct and the same should be considered

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、HowTotalRevenueChangesWhenPriceChanges?PleaseusetheElasticityandDemand 订curvetoexplainit.​
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Discuss motown production techniques as applied to motown girl groups of the 1960s, including specific artists and performance/n
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4 years ago
45 points, please help.
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The total of the assets in a balance sheet is equal to the summation of the owners' equity capital and the total liabilities of the firm.

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3 0
2 years ago
A company's Cash account shows a balance of $5,600 at the end of the month. Comparing the company's Cash account with the monthl
Likurg_2 [28]

Answer:

cash               750 debit

     note receivable         510 credit

    NSF check                 240 credit

-- to record increases of cash from reconciliation --

bank fees expense    44 debit

                       cash                    44 credit

-- to record decreases of cash from reconciliation --

Explanation:

cash account     5,600

bank fees               (44)

NSF                        240

bank collected      510

adjusted cash:   6,306

We adjust based on the unknow information for the company like fees, collection and NFS found. we could also adjust for mistake but for this time, there isn't any.

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3 years ago
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