I think it might be C, I'm not sure but I think it is.
Hope this helped. Have a great day! :D
Answer:
Please see details below:
Explanation:
Sales $16.540
Salaries Expenses -$7.740
Miscellaneous Expenses -$5.820
Net Income $2.980
Dividends 2.830
Retained Earnings $150.
Balance Sheets
Assets
Cash $8.990
Accounts Receivable $16.540
Equipment $22.590
Land $45.980
TOTAL ASSETS $94.100
Liabilities
Accounts Payable $9.170
TOTAL LIABILITIES 9.170
Equity
Common Stock $84.780
Retained Earnings $ 150
TOTAL EQUITY 84.930
Answer:
e. $42,857.14
Explanation:
The computation of the break-even level of earnings before interest and taxes between these two options is shown below:
(EBIT) ÷ (Number of shares) = (EBIT - Interest) ÷ Number of shares
(EBIT) ÷ (75,000 shares) = (EBIT - $20,000) ÷$40,000
40,000 × EBIT = 75,000 × EBIT - $1,500,000,000
35,000 × EBIT = $1,500,000,000
After solving this,
The EBIT would be $42,857.14
The interest expense
= $320,000 × 6.25%
= $20,000
Answer:
I would recommend Machine 7745
Explanation:
Machine 7745
initial outlay = $8,000
operational costs per year = $300
depreciation cost per year = $700
salvage value (at year 10) = $1,000
total costs per year (1 - 9) = $1,000
total costs year 10 = $0
using an excel spreadsheet, the IRR = 2%. Since you are analyzing costs only, not incremental revenue, then you must select the project with the lowest IRR.
Machine A37Y
initial outlay = $8,000
operational costs per year = $260
depreciation cost per year = $800
total costs per year (1 - 10) = $1,060
using an excel spreadsheet, the IRR = 4%
