Answer:
Cash flow year 0 (110,000)
or in other way to express it: a cashoutflow for $110,000
Explanation:
Initial net cahs outflow
this will be the acquisition of the machine cost plus the increase in the working capital for the company
machine cost: all cost necessary for acquire the machien and get it operational
supplier list price 85,000
installation cost <u> 15,000</u>
total cost 100,000
Increase in Working Capital Cost 10,000
As these are cost they are negative so we have a cashouflow
Total cashflow (110,000)
Answer:
Total contribution margin= $1,884,180
Explanation:
Giving the following information:
Direct Materials 150
Direct Labor 28
Variable Manufacturing Overhead 25
Variable Selling 16
Sales in units= 10,130
Selling price= $420
Direct material cost= 150*1.1= $165
<u>First, we need to calculate the unitary contribution margin:</u>
Unitary contribution margin= selling price - total unitary variable cost
Unitary contribution margin= 420 - (28 + 25 + 16 + 165)
Unitary contribution margin= $186
<u>Now, the total contribution margin:</u>
Total contribution margin= 10,130*186
Total contribution margin= $1,884,180
Answer:
(a) Belief that a company will remain in operation for the foreseeable future.
Accounting assumption or principle: Going concern assumption
(b) Indicates that personal and business record-keeping should be separately maintained.
Accounting assumption or principle: Economic entity assumption
(c) Only those items that can be expressed in money are included in the accounting records.
Accounting assumption or principle: Monetary unit assumption
(d) Separates financial information into time periods for reporting purposes.
Accounting assumption or principle: Periodicity assumption
(e) Measurement basis used when a reliable estimate of fair value is not available.
Accounting assumption or principle: Historical cost principle
(f) Dictates that companies should report all circumstances and events that make a difference to financial statement users.
Accounting assumption or principle: Full disclosure principle
