Answer:
(D) $ 1,450
Explanation:
The ending balance in allowance for uncollectible accounts is calculated by the following equation.
Opening Balance + Allowance for the year - Receivables written off = Ending Balance
$ 1,610 + $ 1,590 (0.5 % of sales on credit, $ 318,000 *0.5%) - $ 1,750 ( Receivables written off) = Adjusted allowance for uncollectible accounts <u>$ 1,450</u>
The amounts collected are not relevant in calculating the ending balalnce
I think the reason why the normality of these two proportions is assumed because of n(3.13159) greater than or equal to 10 and n(1 - 3.13159) is greater than or equal to 10. Therefore, for each sample in this research, it must be taken separately.
Answer:
Explanation:
South Tel Communications is considering the purchase of a new software management system. The system is called B-image, and it is expected to drastically reduce the amount of time that company technicians spend installing new software. South Tel's technicians currently spend 6,000 hours per year on installation which cost South Tel $25 per hour. The owners of the B-image system claim that their software can reduce time on task by at least 25%. The system requires an initial investment of $55,000 and an additional investment of$10,000 for technician training on the new system. Annual upgrades will cost the firm $15,000 per year. Because the investment is comprised of software, it can be fully expensed in the year of the expenditure (no depreciation). South Tel faces a 30% tax rate and uses a 9% cost of capital to evaluate projects of this type.
A. Assuming that South Tel has sufficient taxable income from other projects so that it can immediately expense the cost of the software, what are the free cash flows for the project for years zero through five?
Total (65,000)
Cash flow year 1 - 5
Saving on installations per year 450,000
Less: Annual upgrades ( 15,000)
Total 435,000
Less: Tax (30%) (130,500);
Total project free cash flow 304,500.answer
Usually it isn't done much, because of the penalty of bad grades, and because frankly, the professors have seen it before, and therefore, only the boldest would consider it.
