Look at the screenshot<br> a,b, or c

On its December 31, 2017, balance sheet, Calgary Industries reports equipment of $390,000 and accumulated depreciation of $78,00

ycow [4]

Answer:

For equipment = $430,000

For accumulated depreciation = $104,000

Explanation:

The solution of balances for equipment and accumulated depreciation is shown below:-

balances for equipment and accumulated depreciation

Particulars Equipment Accumulated depreciation

Beginning balance $390,000 $78,000

Add:

Addition $84,000 $32,000

Less:

Disposition ($44,000) ($6,000)

Balance $430,000 $104,000

7 0

3 years ago

The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for t

elena55 [62]

Answer and Explanation:

Revenue $160,000

Rental Costs $30,000

Variable Costs $50,000

Depreciation $10,000

Profit before tax $70,000

Tax(35%) $24,500

Net Income $45,500

Operating cash flow

a) Dollars in minus dollars out

Revenue ? rental costs ? variable costs ? taxes = $160000 -$30000-$50000-$24,500 = $55,500

b) Adjusted accounting profits

Operating cash flow = Net income + depreciation = $45,500 + $10,000 = $55,500

c) Add back depreciation tax shield

Operating cash flow = [(Revenue ? rental costs ? variable costs) × (1 ? 0.35)] + (depreciation × 0.35)]

= ($160,000-$30000-$50,000)*0.65 + $10,000*0.35 = $55,500

Yes, the above approaches result in the same value for cash flow

4 0

3 years ago

Calculating Returns Suppose a stock had an initial price of $87 per share, paid a dividend of $2.15 per share during the year, a

Lostsunrise [7]

When ending share price is $98, capital gain yield is 12.64% and dividend yield is 2.47%. Percentage total return is 15.11%. When ending share price is $78, percentage price return is -7.87%.

<h3>What is the percentage total return?</h3>

The price return on a stock has two components; the price appreciation and the dividend yield.

Percentage price return = price appreciation + dividend yield

Price appreciation = (price in on year - initial price) / initial price

Dividend yield = dividend / initial price

Percentage price return when ending share price is $98:

Capital gain yield = [(98 /87) - 1 ] = 12.64%

Dividend yield = (2.15/87) = 2.47%

Percentage price return when ending share price is $78:

Capital gain yield = [(78/87) - 1] = -10.34%

Dividend yield = (2.15/87) =2.47%

Percentage price return = -7.87%

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3 0

2 years ago

If each unit of output can be sold at a price of $5 and incurs variable costs which are constant at $3 per unit, and if the fixe

Vesnalui [34]

Answer:

Break-even point= 15,000/ (5 - 3)= 7,500 units

Explanation:

Giving the following information:

Each unit of output can be sold for $5, variable costs are constant at $3 per unit, and if the fixed costs are $15,000.

We need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= 15,000/ (5 - 3)= 7,500 units

7 0

3 years ago

Read 2 more answers

Wells technical institute (wti) provides training to individuals who pay tuition directly to the school. wti also offers trainin

hodyreva [135]

Wells Technical Institute's method of recording unearned revenues and prepaid expenses into its balance sheet accounts is known as an accrual method of accounting.

<h3>What is accrual method?</h3>

A method of accounting in which the payments and the receipts for a business are recorded in the books of accounts at the time they are due, but not yet received, is known as the accrual method of accounting.

Hence, the significance of accrual method is given above.

Learn more about accrual method here:

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4 0

2 years ago

Look at the screenshot a,b, or c