Answer:
$61,000
Explanation:
The computation of June payments for purchases budgeted is shown below:-
June payments for purchases budgeted = Purchase of June × Purchase percentage + May purchase × Percentage of the following month
= $75,000 × 25% + $65,000 × 65%
= $18,750 + $42,250
= $61,000
Therefore for computing the June payments for purchases budgeted we simply applied the above formula.
It is important to keep accurate financial records so true
Answer:
$575
Explanation:
Straight line method charges a fixed amount of depreciation using the formula :
<em>Depreciation expense = (Cost - Residual Value) ÷ Useful Life</em>
2017
Deprecation expense = $820
2018
Deprecation expense = $820
2019
<u>Calculate depreciable amount :</u>
<em>New depreciable amount = Previous Depreciable Amount - Accumulated depreciation - Increase in Residual amount</em>
= $4,700 - $600 - $1,640 - $100
= $2,300
<u>Determine the New useful life :</u>
Since 2 years have already expired, the new useful life out of the revised 6 years is 4.
<u>Depreciation Expense calculation :</u>
Depreciation Expense = Depreciable Amount ÷ Useful Life
= $2,300 ÷ 4
= $575
Conclusion :
The amount of depreciation expense for the year 2019 is $575
Answer:
$60,000 or $12,000
Explanation:
1. Since Zack expects Sparky to use the developed software for a period of five years, we could assume that the revenue for the first year of the contract would be $60,000.
2. Or if we Spread out the average revenue for a period of five years from the licensing fee, 60,000 / 5 (years) would give us 12,000 dollars per year.
Answer: True
Explanation:
Low Margin items refer to those that have a lower profit per unit because their costs may be higher in relation to their selling price.
High margin items are the opposite.
If the company switches from High Margin items to Low margin items, they will face a situation where they are incurring more costs per sale which would drive their profits down even if sales increase.
The optimal mix for a company should have more high margin items than low margin items.
