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2 years ago

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:

Business

1 answer:

Taya2010 [7]2 years ago

7 0

Answer:

6.50 Years

Explanation:

The computation of the payback period of the investment is shown below;

Total cash outflow is

= $15,000 + $8,000

= $23,000

Now the Cash Inflow in all 6 years is

= $1,000 + $2,000 + $2,500 + $4,000 + $5,000 + $6,000

= $20,500

Cash inflow in Year 7 is $5,000.

But Cumulative Cash flows from Year 1 to Year 7 is

= $20,500 + $5,000

= $26,500

This amount is more than Initial Investment i.e. $23,000.

So our Payback period is between 6 & 7 years i.e.

= 6 + ($23,000 - $20,500) ÷ 5000

= 6.50 Years

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Quantas Industries sold $300,000 of consumer electronics during January under a one-year warranty. The cost to repair defects un

finlep [7]

Answer:

January 31.

Warranty Expense $18,000 (debit)

Warranty Provision $18,000 (credit)

June 20.

Warranty Provision $183 (debit)

Cash $183 (credit)

Explanation:

There is no option on the customer to take the warranty or not. There this type of Warranty is known as an Assurance Type Warranty.

Assurance type warranties are accounted in terms of the Provision Standards as follows ;

Entry when the warranty is granted

Warranty Expense $18,000 (debit)

Warranty Provision $18,000 (credit)

Being recognition of warranty cost and provision.

Warranty Expense $300,000 × 6% = $18,000

When the Warranty Claim is subsequently received.

Warranty Provision $183 (debit)

Cash $183 (credit)

Being utilization of Provision when the warranty claim is received.

3 0

3 years ago

Creating product assortments from several sources to serve customers would be an example of a __________ function.

noname [10]

An example of a logistical function

8 0

3 years ago

Interest rates can be measured more accurately and quickly than reserve aggregates; hence an interest rate is preferred to the r

7nadin3 [17]

Answer:

False

Explanation:

This is false.

In reporting reserves aggregate there are lags interest rate such as the federal interest rate are quite easy to measure and easily observable. Such short term interest rate are nominal values and they do not measure the real cost of borrowing well. It does not show accurately what happens to Gross domestic product. Real interest rate equals nominal interest rate as a ratio of reduced inflation gives a representation of true cost of borrowing.

We cannot say with certainty that interests rate is a better policy instrument based on the ground of measurability.

7 0

3 years ago

At the beginning of 2018, the balance in Jackson Enterprises' Allowance for Uncollectible Accounts was $31,800. During 2018, the

Colt1911 [192]

Answer:

The answer is: Credit record to Accounts Receivable account

Explanation:

The Accounts Receivable account is an asset, usually it should be a current asset since it should be collected within a one year period. When assets increase, a debit record should be made. But in this case, the asset is decreasing since bad debts reduce the Accounts Receivable account. When an asset decreases, a credit record should be made.

6 0

3 years ago

A depreciation adjustment would include a debit to _____________________ and __________________________ to _______________

iragen [17]

Answer:

Depreciation Expense, Credit, Accumulated Depreciation.

6 0

3 years ago