Answer: Capital investment in new machinery
Capital investment in new machinery enables a company to produce more over a given period of time as compared to the old machine.
It also helps the company to take advantage of new orders in the markets and helps it increase its share in catering to the demand for its products
Answer:
a. $404,000
b. $60,000
Explanation:
a. The computation of cash received is shown below:
= Sales for the current year + increased in accounts receivable during the year
= $375,000 + $29,000
= $404,000
The increase in accounts receivable show the predicted cash which will be received in near by future. So, it is added in the computation part.
Hence, the amount of cash received from customers is $404,000
b. Computation of cash payment for income tax is shown below:
= Income tax for the current year + decrease in income tax payable during the year
= $39,000 + $21,000
= $60,000
Both transactions should be added to know the accurate figure of income tax payment made in cash.
Hence, the cash payments for income tax is $60,000
Answer:
Break-even point (dollars)= $362,400
Explanation:
Giving the following information:
Unit sales 50,000
Units Dollar sales $500,000
Fixed costs $204,000
Variable costs $187,500
<u>First, we need to calculate the contribution margin ratio:</u>
Contribution margin ratio= total CM / Sales
Contribution margin ratio= (500,000 - 187,500) / 500,000
Contribution margin ratio= 0.625
<u>Now, the break-even point in sales dollars:</u>
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 204,000 / 0.625
Break-even point (dollars)= $362,400
Answer:
The company's revenue for the year is $1,950,000
Explanation:
In this question, we apply the retained earning equation which is shown below:
Ending retained earning balance = Beginning retained earning balance + net income - dividend paid
$495,000 = $465,000 + net income - $120,000
So, the net income = $150,000
Now we know that the net income = Revenue - expenses
So, $150,000 = Revenue - $1,800,000
So, the revenue = $1,950,000
I think it’s D I’m not sure
