Answer:
1.a. $2,460,000
2.c. $350,000
Explanation:
Calculation of after-tax salvage value
Cost of machine$ 5,000,000
Depreciation (20%+32%)=52% $ 2,600,000
WDV $ 2,400,000
($5,000,000-$2,600,000)
Sale price $ 2,500,000
Profit/(Loss) $ 100,000
Tax-40% $ 40,000
Sale price after-tax $ 2,460,000
Therefore the After-Tax Salvage Value of the production equipment at the end of the 2nd year equals$2,460,000
2.
The net working capital invested in the business, in the beginning will gets recovered at the end of the project.
Year 2, initial working capital of $ 350,000 will therefore be recovered and change in net working capital will be a positive 350,000
Therefore the change in Net Working Capital at the end of the 2nd year equals $350,000
Answer:
An correct statement was prepared for a comprehensive income which is given below.
Explanation:
Solution
Given that:
Cheyenne Corporation
Correct Statement of Comprehensive/General Income
Income before income taxes $371,000
The less Tax ($371,000 * 35%) $129,850
The Net Income $241,150
Other Comprehensive income
Unrealized profit on present for
sales securities, net of tax $57,655
The comprehensive income
($241,150 +$57,655) $298,805
Note:
The Unrealized profit on present for sales securities, net of tax is given as
=($88,700 * (100% -35%))
=$88,700 * 65%
=$57,655
Setting goals and objectives provides the guidance and direction, Motivates and inspires the employees, Facilitates planning and also helps organizations evaluate and controls the performance.
Answer:
2.5% is the current two years interest rate
Explanation:
If the first year interest rate is 2% and expected coming year interest rate is 3% based on the hypothetical projection which is believed to be correct, then the interests rate for the two years will be the average of the interest of the two years in focus which gives us:
Current IR = IR (yr 1) + IR (yr 2) / no of years
Current IR = 2 + 3 / 2 = 2.5
Answer:
Performance
Explanation:
The ultimate responsibility of the manager is to accomplish the high performance that represent the attainment of the organization goals via using the resources in a best way i.e. efficient and effective manner
So the responsibility of the manager is to accomplish the high performance so that the company could attain its goals and objectives
