Saving for the future mastery test

Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment wh

Nastasia [14]

Answer:

3 years

Explanation:

Since the income tax is ignored, so the operating cash flows would be

= EBIT + Depreciation - Income tax expense

= $105,000 + $45,000 - $0

= $150,000

The operating cash flows are same for ten years

And, the initial investment is $450,000

So, the payback period would be

= Initial investment ÷ Net cash flows

= $450,000 ÷ $150,000

= 3 years

6 0

4 years ago

Which item is a benefit of using the travel card?

Leviafan [203]

Using a travel card hinders a traveler or adventurer from being forced to use their own cash for authorized travel expenditures. Having a travel card gives you many benefits. Using a travel card is a widespread, useful and safe method nowadays, to purchase overseas currencies and take it out of the country. A travel card can be stress-free and more secure than bringing cash or traveler’s cheques, for the reason that you can preload a card with a distinct currency or numerous, depending on your travel ideas.

4 0

4 years ago

What is one force facing U.S businesses today ?

Rashid [163]

Employee healthcare , hiring employee increeccing profit

5 0

3 years ago

Simon Company’s year-end balance sheets follow.

vivado [14]

Answer:

A.Current ratio

2017 191%

2016 248%

2015 289%

B.Acid Test Ratio

2017 101%

2016 139%

2015 183%

Explanation:

A.Computation of the current ratio for the year ended 2017, 2016, and 2015.

Using this formula

Current Ratio =Current Assets / Current Liabilities

2017 2016 2015

Cash $26,403 $29,364 $29,991

Accounts receivable, net

73,552 52,436 40,392

Merchandise inventory 96,214 70,676 43,017

Prepaid expenses 8,255 7,944 3,467

a.Current asset

204,424 160,420 116,867

b.Current Liabilities

Accounts payable $107,101 $64,564 $40,392

Let plug in the formula

(a) / (b) Current Ratio 191% 248% 289%

Therefore the Current ratio are:

2017 191%

2016 248%

2015 289%

B.Computation for acid-test ratio for the year ended 2017, 2016, and 2015.

Using this formula

Acid Test Ratio=Current Assets / Current Liabilities

2017 2016 2015

Cash $26,403 $29,364 $29,991

Accounts receivable, net

73,552 52,436 40,392

Prepaid expenses 8,255 7,944 3,467

a. Current asset

108,210 89,744 73,850

b. Current liabilities

Accounts payable $107,101 $64,564 $40,392

Let plug in the formula

(a) / (b)Acid Test Ratio 101% 139% 183%

Therefore the Acid Test Ratio are:

2017 101%

2016 139%

2015 183%

8 0

3 years ago

After observing the heavy snow that his town received the previous winter, Ajay Patel, an enterprising student, plans to offer a

Nesterboy [21]

Just answering for the points , sorry lol!

8 0

3 years ago