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Nuetrik [128]
2 years ago
11

This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life o

f 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2019, and was used 27,000 hours in 2019 and 26,000 hours in 2020. Refer to Flower Power. If the company uses the double-declining-balance depreciation method, what amount is the depreciation expense for 2020
Business
1 answer:
Hoochie [10]2 years ago
8 0

Answer:

Annual depreaciation 2020= $2,400

Explanation:

Giving the following information:

Purchase price= $12,000

Salvage value= $2,000

Useful life= 5 years

<u>To calculate the depreciation expense under the double-declining balance, we need to use the following formula:</u>

Annual depreciation= 2*[(book value)/estimated life (years)]

2019:

Annual depreaciation= 2*[(12,000 - 2,000) / 5]

Annual depreaciation= 4,000

2020:

Annual depreaciation= 2*[(10,000 - 4,000) / 5]

Annual depreaciation= $2,400

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Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $42.50. At the end of year 1
kkurt [141]

Answer:

17.76%

Explanation:

The computation of the time-weighted return on your investment is given below

But before that we have to do the following calculations

Year 1 = ($46.50 - $42.50) + 2 ÷ ($42.50) × 100 = 14.12%

Year 2 = ($54.50 - $46.50) + 2 ÷ ($46.50) × 100 = 21.51%

Now the time weighted return is

(1 + t)^2 = (1 + 14.12%) × (1 + 21.51%)

= 1.1412 × 1.2151

= √1.3867 - 1

= 17.76%

8 0
2 years ago
Gena Manufacturing Company has a fixed cost of $225,000 for the production of tubes. Estimated sales are 150,000 units. A before
kykrilka [37]

Answer: $2.33

Explanation:

The unit contribution margin that is required to attain the profit target will be calculated thus:

= (Fixed cost + Desired profit) / Estimated units

= ($225,000 + $125,000) / 150,000

= $350,000 / 150,000

= $2.33

Therefore, the unit contribution margin is $2.33

7 0
2 years ago
In the components of a business plan, what section contains a detailed description of the company, the problem/opportunity, prop
dimaraw [331]

In the components of a business plan, the section which contains a detailed description of the company, the problem/opportunity, proposed solution to be offered, and your competitive advantage is "Financial Projections section"

<h3>What is Financial Projections?</h3>

Financial predictions forecast your company's future revenues and expenses using existing and estimated financial data.

They frequently contain many scenarios so you may see how adjustments to one part of your finances (for example, increased sales or reduced operational expenses) may affect your profitability.

Financial predictions are an important tool for business planning for a variety of reasons.

  • Financial predictions assist you in setting your beginning budget, determine when you may anticipate the business to be become profitable, or set benchmarks for meeting financial goals if you're starting a business.
  • If you currently have a firm, making annual financial projections can assist you in setting goals and keep on target.
  • Both startups and current firms will require financial estimates when seeking outside finance to convince investors and lenders of the business's development potential.

To know more about the financial projections, here

brainly.com/question/21773027

#SPJ4

5 0
2 years ago
Selzik Company makes super-premium cake mixes that go through two processing departments—Blending and Packaging. The following a
solmaris [256]

Answer:

Please see answers below

Explanation:

We know that ;

Beginning work WIP 10,000

Units started 170,000

a. Ending WIP 20,000

Material 100% complete = 20,000 EU

Conversion 100% complete = 8,000 EU

b. Units completed = 160,000

Units started and completed = 150,000

Beginning WIP costs;

Materials cost $8,500

Conversion cost $4,900

Costs added during the period;

Materials cost $139,400

Conversion cost $244,200

Equivalent units for July;

EU for materials = 170,000

EU for conversion = 7,000 + 150,000 + 8,000 = 165,000

Costs per EU:

Materials = $139,400 / 170,000 = $0.82 per EU

Conversion = $244,200 / 165,000 = $1.48 per EU

c. Total costs;

Ending WIP = [20,000 × $0.82] + [8,000 × $1.48] = $28,240

Units transferred out = [$383,600 - $28,240] + $8,500 + $4,900 = $368,760

d. Therefore,

Costs to be accounted for ;

Beginning work in process $13,400

Cost added $383,600

Total costs to be accounted for $397,000

Also,

Costs account ted for are as follow

Units transferred out $368,760

Ending WIP $28,240

Total costs accounted for $397,000

5 0
3 years ago
In countries where inflation is expected to be high, interest rates also will be high, because investors want compensation for t
Degger [83]

Answer:

Fisher effect

Explanation:

Fisher effect is the effect in the economic theory that is established by the economist Irving Fisher, which states the relationship among the inflation and both nominal and the real interest rates.

This effect state that the real rate of interest equals to the nominal rate of interest deduct the expected inflation rate.

So, the relationship which is mentioned in the question is the fisher effect as it state the rate of interest that reflect the expectations likely the future inflation rates.

5 0
3 years ago
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