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zubka84 [21]
2 years ago
6

Western Electronics (WE) is reviewing the following data relating to a new equipment proposal: Net initial investment outlay Aft

er-tax cash inflow from disposal of the asset after 5 years $10,000 Present value of an annuity of $i at 128for 5 years Present value of $1 at 128 in 5 years $50,000 3.605 0.567 WE expects the net after-tax savings in cash outflows from the investment to be equal in each of the 5 years. What is the minimum amount of after-tax annual savings oncluding depreciation effects) needed to make the investment yield a 12% return (rounded to the nearest whole dollar)?
$13,889.
$12,297
$8,189.
$11,111
$15,678
Business
1 answer:
alexira [117]2 years ago
4 0

Answer:

$12.297

Explanation:

From the given information:

The required amount for the after-tax annual savings to yield a return of 12% can be calculated as follows:

The Present value PV of future salvage value, after tax is:

= $10000 × 0.567

= $5670

From the original outlay of investment which is = $50000

The net amount to be recovered in terms of the present value = $50000 - $5670

= $44330

Finally, the required amount for the after-tax annual savings = \dfrac{\$44330}{3.605}

= $12.297

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Jackson Company uses a perpetual inventory system. On November 30, it purchased $10,000 of merchandise and it must pay the $200
pshichka [43]

Answer:

Option (A) A debit to inventory for $200

Explanation:

The entire cost of purchasing products (including the cost of having the inventory shipped to the buyer) is reported as part of the cost of the inventory in a perpetual inventory system.

The entry of paying the charges for shipping is included in debit to inventory for $200 and a credit to cash for $200.

Hence,

The answer is option (A) A debit to inventory for $200

8 0
3 years ago
The following information pertains to Havana Corporation's defined benefit pension plan: ($ in 000s) 2018 2019 Beginning balance
Hitman42 [59]

$504000 is the actual return

<u>Explanation:</u>

particulars                           calculation Amount

Service cost                                         700000

Interest cost                     600000 * 8 \%        480000

Less: Expected return 10 \% * 5760000    576000

Prior service cost                                    48000

Net loss                                                     30000

Pension expense                                       682000

Therefore, the pension expense is $682000

<u>The computation is as follows for the calculation of return (in $000’s) </u>

<u>Plan assets </u>

Beginning = $5760

Actual return = ?

Cash contributions = 696

Less: Retireee benefits = (624)

Ending balance = $6336

Thus after solving this, we get the actual return that is equal to = $504,000

5 0
3 years ago
What are the three activities according to which a statement of cash flows is organized?
HACTEHA [7]

Operations, Investing and Financing are the three activities according to which a statement of cash flows is organized.

Cash flow refers to the net balance of cash moving into and out of a business at a specific point in time. Cash is consistently moving into and out of a business.

For example- When a retailer purchases inventory, money flows out of the business toward their suppliers.

To learn more about

brainly.com/question/735261

#SPJ4

8 0
1 year ago
When one group controls an industry or market by being the only provider, this is called _____.
e-lub [12.9K]
When one group controls an industry or market by being the only provider, this is called MONOPOLY.

Mono - Greek monos means one or single
Poly - Greek polein means to sell.

Monopoly is a market where only one sells a certain good or service. In this type of market there is no competition thus the monopolist is not driven to improve his commodity because consumers have no other choice but to buy his product.
6 0
3 years ago
Oakley Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $32,100. If
Murrr4er [49]

Answer: $2100

Explanation:

From the question, we are informed that Oakley Company does not ring up sales taxes separately on the cash register and that the total receipts for February amounted to $32,100 and the sales tax rate is 7%.

The amount that must be remitted to the state for February's sales taxes will be:

= $32,100/(1+7%) × 7%

= $32100/(1 + 0.07) × 0.07

= $32100/1.07 × 0.07

= $2100

7 0
3 years ago
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