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1 year ago

Hi guys, i need urgently some help with this question

Business

1 answer:

klasskru [66]1 year ago

4 0

Answer:

Accounting rate of return, also known as the Average rate of return, or ARR is a financial ratio used in capital budgeting. The ratio does not take into account the concept of time value of money. ARR calculates the return, generated from net income of the proposed capital investment. The ARR is a percentage return. Say, if ARR = 7%, then it means that the project is expected to earn seven cents out of each dollar invested (yearly). If the ARR is equal to or greater than the required rate of return, the project is acceptable. If it is less than the desired rate, it should be rejected. When comparing investments, the higher the ARR, the more attractive the investment. More than half of large firms calculate ARR when appraising projects.

Explanation:

hope this helps

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The trial balance of Barger Company at the end of the accounting period, immediately prior to recording closing entries, showed

lesya692 [45]

Answer: $30,600

Explanation:

First calculate the earnings for the year.

Revenue is given. Expenses are also given and come out of revenue. Dividends also come out of revenue as well.

Retained Earnings for the year is therefore,

Retained Earnings for the year = Revenue - Expenses - Dividends

= 62,000 - 44,900 - 2,300

Retained Earnings for the year = $14,800

This figure should be added to the retained earnings of the previous period to find the total balance.

= 14,800 + 15,800

= $30,600

$30,600 is the closing Balance on Retained Earnings after closing entries.

8 0

2 years ago

Suzanne, Kyle, and Monique have been arguing for days over how they are going to divide up the responsibilities for their group

motikmotik

Answer:

Emergence.

Explanation:

In this context, it can be said that Suzanne, Kyle and Monique are in the emergence phase of group decision making.

This phase occurs right after the conflict phase, in the emergence phase the ideas will be finally defined and there will be a consensus among the team.

At this stage it is common for the individual interests and needs of the team members to be set aside in favor of the team's interests.

Therefore, project members also tend to adopt a more softening stance and opinions with the intention of not appearing dominant in relation to the project.

6 0

2 years ago

Lavallee Self Storage purchased land, paying $ 160 comma 000 cash as a down payment and signing a $ 145 comma 000 note payable

Andrews [41]

Answer:

Land 373,500

Building 1,100,000

land improvements 67,000

Fence 55,000

Sign 12,000

Explanation:

Land cost:

cash 160,000

note payable 145,000

delinquent property tax 4,000

insurance costing 1,500

level the land 3,000

soil 60,000

Total land: 373,500

The land will be recorded for all the cost necessary to get it ready for use.

The soil, once added can't be differentiate from the original land. It is added to the land is not an improvement.

The office building will be for 1,100,000

land improvements will be the fence and signs:

fence 55,000

sign 12,000

total 67,000

3 0

2 years ago

The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm

Tems11 [23]

Answer:

Part A)

Year 0 net cash flow would comprise of basic price, modification cost and requirement for net working capital. The formula for cash flow in Year 0 would be:

Year 0 Net Cash Flow = -Basic Price - Modification Cost - NWC

______________

Using the values provided in the question, we get,

Year 0 Net Cash Flow = -190,000 - 47,500 - 9,500 = -$247,000

______________________

Part B:

Year 1, 2 and 3 would required adjustment for depreciation charges (under MACRS) against expected savings. The depreciation rates for 3 year class asset would be 33%, 45% and 15% for Year 1, Year 2 and Year 3 respectively.

Depreciation would be calculated on the equipment's basic price and modification cost.

The formula that can be used to calculate the net operating cash flow would be:

Net Operating Cash Flow = (Sales - Depreciation)*(1-Tax Rate) + Depreciation

______________

Using the values provided in the question, we get, the table in the attached file

Important Information:

Depreciation (Year 1) = (190,000 + 47,500)*33% = $78,375

Depreciation (Year 2) = (190,000 + 47,500)*45% = $106,875

Depreciation (Year 3) = (190,000 + 47,500)*15% = $35,625

______________________

Part C:

Additional non operating cash flow would consist of after-tax salvage value and return of net working capital. Relevant formulas are:

Additional Non Operating Cash Flow = After Tax Salvage Value + Return of Net Working Capital

After Tax Salvage Value = Sales Value +/- Tax on Loss/Gain from Sale of Asset

Loss/Gain from Sale of Asset = Sales Value - Book Value

Book Value = (Basic Price + Modification Cost)*(1-(33%+45%+15%))

______________

Using the above mentioned formulas, we get,

Book Value = (190000 + 47500)*(1-(33%+45%+15%)) = $16,625

Gain on Sale of Equipment = 66,500 - 16,625 = $49,875

Tax on Gain = $49,875*30% = $14,962.50

After Tax Salvage Value = 66,500 - 14,962.50 = $51,537.50

_____________________

Additional (Non Operating) Cash Flow = $51,537.50 + $9,500 = $61,037.50 or $61,038

Explanation:

8 0

2 years ago