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3 years ago

Presented below is information related to Novak Manufacturing Corporation.

Business

1 answer:

svet-max [94.6K]3 years ago

5 0

Answer:

A. Assets Original Salvage Depreciable Depreciable SL Depreciation

Cost Value value Life Per Year

A $46,575 6,325 40,250 10 $4,025

B $38,640 5,520 33,120 9 $3,680

C $41,400 4,140 37,260 9 $4,140

D $21,850 1,725 20,125 7 $2,875

E $27,025 2,875 24,150 6 $4,025

Total $175,490 20,585 154,905 $18,745

Composite rate of Depreciation = Total Depreciation per year/Total Original Cost

Composite rate of Depreciation = 18745/175490

Composite rate of Depreciation = 0.106815

Composite rate of Depreciation = 10.68%

B. Adjusting entry Debit Credit

Depreciation Expense-Plant Asset $18,745

Accumulated Depreciation-Plant Asset $18,745

c. Journal Entry Debit Credit

Cash $5,520

Accumulated Depreciation-Plant Assets $16,330

Asset D $21,850

(Record Sale of asset D)

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Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 d

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Answer:

(C) 110 days

Explanation:

The computation of the operating cycle is shown below:

= Average days of process from raw materials to finished products + another days before the finished goods are sold + average days of accounts receivable - average days of accounts payable

= 80 days + 40 days + 70 days - 80 days

= 110 days

While calculating the operating cycle we add the inventory days, accounts receivable and deduct the account payable days.

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3 years ago

People live for four periods. They can choose to work for all four periods, or can attend school in the first period and then wo

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Answer:

People should disregard schooling and thus work in the entire life period.

Explanation:

Condition 1--- Work throughout the 4 periods

The NPV = $\frac{30,000}{1.1} + \frac{30,000}{1.1^2} + \frac{30,000}{1.1^3} + \frac{30,000}{1.1^4}$

= 27,272. 7 + 24,793.3 + 22,539.4 +20,490.4

= 95,095.8

Condition 2 - Attend school and work later

The NPV = -28,000 + $\frac{50,000}{1.1^2} + \frac{50,000}{1.1^3} + \frac{50,000}{1.1^4}$

= -28000 + 41,322.31 + 37,565.7 + 34,150.6

= 85,038.61

Conclusion: Since the NPV of not going to school is higher, people should disregard schooling. They should work in the entire life period.

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3 years ago

A marketing manager who orders that a successful product be removed from the market after a customer dies from consuming it may

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Answer:

Deontologist

Explanation:

Deontology is an ethical theory that statutes that the morality of an action should be based on that action rather than on the consequences. In the question given the manager decides based on the customer because he believes in the rights of all individuals.

I hope you find this information useful and interetsing! Good luck!

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3 years ago

Explain consumptions of the principal of absolute advantage

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Answer:

The Absolute Advantage Theory assumed that only bilateral trade could take place between nations and only in two commodities that are to be exchanged.

Explanation:

In economics, the principle of absolute advantage refers to the ability of a party (an individual, a firm, or a country) to produce more of a good or service than competitors while using the same amount of resources.

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3 years ago

A firm creates value by?

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Answer:

Paying more cash to its creditors and stockholders than the amount it received from them (1)

Explanation:

Stockholders are the primary owners of the company who have invested their money in the company's shares i.e equity holders and expect a reasonable returns higher than their investment.

Creditors are money lenders like banks i.e debt holders who have given loan or bank overdraft to the company and expecting the company to pay back at an agreed date with interest.

A firm creates value by being able to invest money sourced from various investors into a viable project that guaranteed greater returns than the weighted average cost of capital.

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3 years ago