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3 years ago

Compute the payback period for each of these two separate investments:

Business

1 answer:

Gnesinka [82]3 years ago

4 0

Answer:

A. 1.89 years

B. 2.33 years

Explanation:

According to the scenario, computation of the given data are as follows,

(A) After-tax income = $72,115

Expected cost = $250,000

Useful life = 4 years

Salvage value = $10,000

Depreciation Value = ($250,000 - $10,000) ÷ 4 = $60,000

Annual net cashflow = After tax income + Depreciation

= $72,115 + $60,000 = $132,115

Payback Period = Machine expected cost ÷ Annual net cash flow

= $250,000 ÷ $132,115

= 1.89 years

(B) After-tax income = $39,000

Machine cost = $200,000

Useful life = 8 years

Salvage value = $13,000

Depreciation value = ($200,000 - $13,000) ÷ 4 = $46,750

Annual net cashflow = After tax income + Depreciation

= $39,000 + $46,750 = $85,750

Payback Period = Machine expected cost ÷ Annual net cash flow

= $200,000 ÷ $85,750

= 2.33 years

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Prepare the current assets section of the balance sheet for Buffalo Industries, assuming that in addition to the receivables it

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Answer:

Explanation: current assets are assets other than fixed asset that a company uses in its day to day operations and are noted in the Balanced sheet of an organisation and they include:

Cash, Account receivable, Inventory, Supplies.

From the above question, the current asset of Buffalo Industries is stated below:

Balanced Sheet (extract)

Current assets :

Cash $97,340

Merchandise inventory $167,950

Supplies. $12,560

Total current asset. $277,850

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4 years ago

the xyz block company purchased a new office computer and other depreciable computer hardware for $12,000. during the third year

Serhud [2]

Present worth is $7,944 ( Considering some assumptions )

Depreciation is the reduction in the value of asset due to wear and tear. Depreciation is charged only on fixed asset on a straight line or on a fixed rate per year.

Computer and other hardware of $12,000 to be depreciated over 5 years with no salvage value

<u>Depreciation </u><u>per year = ( Cost of Asset - Salvage value ) / Useful life </u>

= ($12,000 - $0) / 5 = $12,000/5 = $2,400 per year

It is assumed that the assets are donated at the end of third year and depreciation of that year is fully charged.

Depreciation for 3 years = $2,400 x 3 = $7,200

Now As all these event happened in the past and it is assumed that we are standing at the end of year 3, the present worth of the all these depreciation is actually the future value of these deduction because it was made earlier.

Present worth of depreciation is as follows

Present Worth = [$2,400 x (1+0.1)^2 ] + [$2,400 x (1+0.1)^1 ] + [$2,400 x (1+0.1)^0 ] = $2,904 + $2,640 + $2,400 = $7,944

Third deduction was made at the date when worth is being calculated.

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1 year ago

On January 1, 2007, Nichols Company's inventory of Item X consisted of 2,000 units that cost $8 each. During 2007 the company pu

timama [110]

Answer:

For the cost of goods sold, the company made around $42,435

Explanation:

Solve cost of goods for Jan. 1st:

2000 units × $8

$16,000

Solve for cost of goods during 2007:

5000 units × $10

$50,000

Use the formula for weighted-average cost:

WAC per unit = cost of goods available for sale / units available for sale

WAC per unit = 16,000 + 50,000 / 2000 + 5000

WAC per unit = 66,000 / 7000

WAC per unit = 9.42857..... I will round to a dollar value

WAC per unit = 9.43

For cost of goods <em>sold</em>:

4,500 × 9.43 (please keep in mind 9.43 is a rounded number)

$42,435

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3 years ago

Read 2 more answers

when darla prepares her company's balance sheet, she should include in the list of current assets. a. land b. equipment c. lease

lakkis [162]

When Darla prepares her company's balance sheet, she should include accounts receivable in the list of current assets. Option D

<h3>What are accounts receivable?</h3>

Generally, Accounts receivable, also known as AR or A/R, are claims for payment that are legally enforceable that are held by a firm for products delivered or services performed that consumers have requested but have not yet paid for. The abbreviation for accounts receivable is accounts receivable.

The money that consumers owe a firm for products or services that they have received but have not yet paid for is referred to as the company's accounts receivable.

For instance, the amount that is owed by consumers who buy things on credit is added to the accounts receivable when such customers make their purchases.

In conclusion, When Darla is putting out the balance sheet for her firm, she needs to make sure that the list of current assets includes accounts receivable. The D Option

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when darla prepares her company's balance sheet, she should include ___ in the list of current assets. a. land b. equipment c. leased property d. accounts receivable

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1 year ago

If the central bank sells $10,000 in bonds to a bank that has issued $350,000 in loans and is exactly meeting the reserve requir

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The money supply will be $100,000

Banks need to have a $ 10,000 reserve, so if you buy $350,500 with 4,444 bonds, you'll need to reduce your lending by $10,000 to make up for the difference.

A decrease in credit means a decrease in deposits at other banks. In other words, the excess reserve was initially zero, but after the bond is sold it will be minus $10,000,

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3 years ago