Insolvency occurs when liabilities far exceed available assets.

During its first year of operations, a company entered into the following transactions: Borrowed $20,000 from the bank by signin

Alenkinab [10]

Answer:

$62,400

Explanation:

Assets are Economic resources controlled by the entity as a result of past events from which cash is expected to flow into the business.

Assets include the following Amounts:

Cash from Bank Note $20,000

Cash from Stock Issues $40,000

Supplies Inventory $4,000

Payment for Supplies ($1,600)

Total Available Assets $62,400

5 0

3 years ago

Annual demand for an item is 11,000 units with the cost per unit at $250. The holding rate is 10% and the order cost is $14.00 p

frutty [35]

Answer:

93 units

Explanation:

Annual demand for an item = 11,000 units

cost per unit = $250

holding rate = 10%

Order cost = $14.00 per order

No. of days in a year = 260

Lead-time = 2 days

$Average\ daily\ demand=\frac{Annual\ demand\ for\ an\ item}{No.\ of\ days\ in\ a\ year}$

$Average\ daily\ demand=\frac{11,000}{260}$

= 42.3 units

For a service level of 97%, the value of z is 1.881

Therefore,

Reorder point:

= Average daily demand × Lead time + Standard deviation of the daily demand × no. of standard deviation corresponding to service level probability × $\sqrt{Lead\ time}$

= (42.3 × 2) + (3 × 1.88 × $\sqrt{2}$ )

= 92.57

= 93 units

5 0

3 years ago

Scrimshander, Inc. is a shipping company, transporting goods using cargo ships. On January 1, 2017, the company purchases and pu

Alex17521 [72]

Answer:

Scrimshander, Inc.

a) Annual depreciation expense = $360,000

b) Net book value of the cargo ship as of December 31, 2019 = $9,280,000

c) Net book value of the cargo ship as of December 31, 2041 = $1,360,000

d) Depreciation expense for 2042 = $360,000

Explanation:

a) Data and Calculations:

Purchase price of a cargo ship = $10,000,000

Expected useful life of the ship = 25 years

Salvage value = $1,000,000

Depreciable amount = $9,000,000 ($10,000,000 - $1,000,000)

Annual depreciation expense = $360,000 ($9,000,000/25)

Net book value as of December 31, 2019 = $9,280,000 ($10,000,000 - $720,000)

Accumulated depreciation = $720,000 ($360,000 * 2)

Net book value as of December 31, 2041 = $1,360,000 ($10,000,000 - 8,640,000)

Accumulated depreciation = $8,640,000 ($360,000 * 24)

7 0

3 years ago

Mason Farms purchased a building for $689,000 and made repairs costing $136,000. The annual taxes on the property are $8,200. Th

ZanzabumX [31]

Answer:

$730,000

Explanation:

In the given question, the building was purchased and it repairs also. Plus, annual taxes are applicable to the property. The current market value and the book value of the building is also given in the question

For including the amount in the initial cash flow for the building project we consider the current market value of the building i.e $730,000. No other cost should be recognized

6 0

3 years ago

If the contribution margin is not sufficient to cover fixed expenses:Multiple Choicevariable expenses equal contribution margin.

andriy [413]

Answer:

The correct answer is C. Loss occurs.

Explanation:

If the contribution margin is not sufficient to cover fixed expenses:

The contribution margin is calculated by deducting from sales the variable components. <u>Unless the selling price is lower than unitary variable costs, contribution margin will never be negative.</u>

When the contribution margin is lower than fixed costs, the company incurs on a loss.

5 0

3 years ago