Required: Appraise both investments using the 4 main methods of investment appraisal. The appropriate discount rate is 10%.
Q: Compute for the adjusted balance of "BUILDING".
A: Accounting for fixed assets - The property, land & building are important parts of the fixed…
Q: ue rulings, and/or case(s) that you used in making your determination. Would Fred be able to claim…
A: Internal Revenue Code - The introduction to the Internal Revenue Code (IRC) states that Title 26 of…
Q: During 2022, Ebenezer (single) decided to sell his long-time personal residence. He purchased the…
A: The question has asked to compute the recognized gain. Recognized gain: Recognized gain indicates…
Q: The fixed rent per month is P5,000. The salary and supplies expenses are P50 for every P100 services…
A: Given, Fixed rent per month is P5,000. Salary and supplies expense are P50 for every P100 services…
Q: During 2022, Ash had the following cash receipts: Wages Interest income from U.S. Treasury bonds…
A: Gross income is comprised of your salary, dividends, capital gains, business revenue, retirement…
Q: Better Health Company has two service departments distribution of each service department's efforts…
A: The cost represents the expenses incurred by the company on the production process of the company.…
Q: 1. How do you determine the cost of goods available for a given period? b. Purchases plus ending…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library…
A: Financial statements mainly comprise three statements, income statement, balance sheet, and cash…
Q: [The following information applies to the questions displayed below.] BMX Company has one employee.…
A: Payroll expenses refer to the amount that an employer pays to their employees in exchange for…
Q: Ann Reynolds has recently been hired as practice manager for Dr. LaRue. In reviewing the financial…
A: 1. A payment plan must be established prior to the start of any medical services. 2. Payment is…
Q: Exercise 4-6 (Algo) Completing the income statement columns and preparing closing entrie P1, P2…
A: Net income is the difference between total revenues and total expenses. It indicates the value of…
Q: nts in place of statements of individual companies or accounting for a business combination using…
A: Financial accounting - A specific form of accounting known as financial accounting comprises a…
Q: he Ahram Company net income was 100,000 L.E. for the year ended on 31/12/2016. The examination of…
A: The value of assets decreases with time because the equipment lost value with time but depreciation…
Q: Saturn Company has the following transactions as of December 31, 2021. Indicate which, if any,…
A: Balance Sheet is the financial statement that records all the assets, liabilities and stockholders'…
Q: Petrus Framing's cost formula for its supplies cost is $2,300 per month plus $6 per frame. For the…
A: The variance is the difference between the actual data and standard output of the production. The…
Q: A comparative balance sheet for Rocker Company appears below: Assets Cash ROCKER COMPANY Comparative…
A: Cash flow statement provided information about the cash inflows and cash outflows of the company.…
Q: Question 4 Aug 01 Provided services for $250,000. Received $90,000 cash and a 15% - 8 months note.…
A: JOURNAL ENTRY Journal entry is the first stage of Accounting Process. Journal Entry help to record…
Q: (a) Notes receivable (b) Accounts receivable (c) Retained earnings (d) Sales (e) Operating expenses…
A: Since you have posted a question with multiple sub-parts we will do the first three sub-parts for…
Q: Consider an asset that costs $1,280,170 and is depreciated straight-line to 83,206 over its 14-year…
A: Cost of asset = 1,280,170 residual value = 83206 estimated life = 14 year annual depreciation =…
Q: JST Limited has computed the following income (loss) for the year ended December 31, 2022: Loss…
A: Capital gain or loss arises when a capital asset is sold, if its selling price is more than its…
Q: Which of the following statements is true regarding the formula Y= a + bx? Multiple Choice Y = The…
A: ANSWER Y = a+ bx is the cost volume formula Under which 'a' represents the estimated total fixed…
Q: The following financial statements were drawn from the records of Vernon Shoes: Balance Sheets As of…
A:
Q: Give 2 Components of an entity to be classified as discontinued operation: Give the three…
A: Components of an entity to be classified as discontinued operation Represents a distinct main…
Q: Gems Inc. has the following account balances (in thousands): Buildings Accum. dep-buildings…
A: Working capital refers to the money that is available for meeting the short-term, current assets…
Q: Compute the modified duration of a 9% coupon, 3-year corporate bond with a yield to maturity of 12%.
A: Given data: Coupon rate = 9%Tenure of bond = 3 yearsYield to maturity = 12%
Q: For every P500 worth of services rendered to customers, Beauty has to pay P300 salary expense, and…
A: According to accrual concept of accounting, expense and revenues are recorded in books of account…
Q: Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions,…
A: A review of the financial performance of a specific operational unit within your bigger company is…
Q: Esquire Clothing is a manufacturer of designer suits. For June 2020, each suit is budgeted to take 4…
A: Actual performance is evaluated in comparison to the benchmark, which has been set in advance. If…
Q: Sales Cost of goods sold Gross profit $175,000 105,000 $70,000 Prepare a vertical analysis of the…
A: The vertical analysis of income statement is performed as comparing all the elements of the income…
Q: 57 units are in the ending inventory from the units that were purchased first. Beginning inventory:…
A: The question has asked to compute the value of ending inventory under the LIFO method. LIFO method:…
Q: Juliana purchased land three years ago for $106,300. She made a gift of the land to Tom, her…
A: In the case of capital gain or loss arising from gifted property or inheritance, the cost of the…
Q: Waterway Company is trying to determine the equivalent units of production for conversion costs with…
A: Conversion costs are costs related to direct labor and manufacturing overhead to convert the raw…
Q: ial statements include ordinary share capital and share premium the company used US gaap what would…
A: The USA gaap in the IFRS has a different treatment of the certain items and accounting process.…
Q: Darlington Company entered into the following business events during its first month of operations.…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: You invest $10,000 in a savings account that pays interest of 8% compounded monthly To the nearest…
A: The worth of an investment or asset on a certain date in the future is referred to as its "future…
Q: In California, by statute, the seller(s) of residential real property must make each of the…
A: As per the provisions of the statute in California, there are so many things that need to be…
Q: If liabilities are $133,000 and owners equity is $79,000, the amount of assets is:
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity. The…
Q: I have two questions. Fund 1 and 7 are not included because $350,000 in vacations and other…
A: Journal entries: The first step in accounting is a journal entry, which is used to record a business…
Q: On January 1, the Matthews Band pays $69,000 for sound equipment. The band estimates it will use…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: 1. On 9/20/22, Manhattan Trading shipped goods costing $200,000 to Queens Appliances Store on…
A: The perpetual inventory system means that the changes to inventory are immediately recorded through…
Q: what are the possible causes of favourable material price variance
A: The difference between the actual price paid for materials used in production and the standard price…
Q: The board of directors of Mesa Verde Tool Company set the profit goal for calendar year 2016 at…
A: Absorption costing is a costing mechanism where all the costs related to the production are assigned…
Q: 2 Curtis Party Rentals offers party equipment such as tents, tables, chairs, and so on for outdoor…
A: Cash Receipt Schedule :— This budget is prepared to estimate the collection from customer during the…
Q: Pretty charges P3.75 per kilogram of laundry service done. The cost of laundry supplies consumption…
A: The unit cost is calculated as total cost divided by number of units. The total cost is calculated…
Q: On December 31, 2024, Sunland Company had 1,360,000 share 2024, stockholders' equity had the amounts…
A: Journal entry represents the initial recording the financial transactions of the company. It…
Q: Use the following information from the Adjustments columns of a 10-column work sheet. Unadjusted…
A: S.no. Account. Debit($) Credit($) A Insurance expense 1198…
Q: During the current year, merchandise is sold for $48000 cash and for $336000 on account. The cost of…
A: Gross profit is the amount of profit earned by the entity after deducting the cost of goods sold…
Q: In 2022, Jessie had Box 1 wages of $87,000, interest income from a bank account of $4,500, a state…
A: The question asked to compute adjusted gross income of Jessie. Adjusted gross income: The adjusted…
Q: Doug and Sue Click file a joint tax return and decide to itemize their deductions. The Clicks'…
A: The correct answer is: (B) $1,350 The Clicks' investment interest expense deduction is equal to the…
Q: The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Please help me
Step by step
Solved in 7 steps with 2 images
- Billy Bob's Crab & Oyster Shack wants to reduce the cost of labour by replacing some labour with machines. If Billy Bob's were to purchase a machine to shuck the oysters, it can save $50,000 a year for 10 years. The new machine will cost $650,000 and it will be worth $50,000 at the end of the 10 year period. The firm believes it will need $10,000 in spare parts inventory (increase in NWC), which it can sell for the $5,000 at the end of the project. The machine has a 20% CCA rate and the firm has a 15% tax rate. If they want a 20% return on their investment what is the NPV? Round your answer to the nearest dollar, no dollar sign, no commas, put negative sign if needed.. Yummy Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Yummy has accumulated regarding the new machine is: Cost of the machine $80,000 Increased annual contribution margin $15,000 Life of the machine 10 years Required rate of return 6% Yummy estimates they will be able to produce more candy using the second machine and thus increase their annual contribution margin. They also estimate there will be a small disposal value of the machine but the cost of removal will offset that value. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts. Q. Calculate the Payback period for the new machine. Yummy Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Yummy has accumulated regarding the new machine is: Cost of the machine $80,000 Increased annual contribution margin $15,000 Life of the machine 10 years Required rate of return 6% Yummy estimates they will be able to produce more candy using the second machine and thus increase their annual contribution margin. They also estimate there will be a small disposal value of the machine but the cost of removal will offset that value. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts. Q. Calculate the Internal rate of return (using the interpolation method) for the new machine
- . Yummy Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Yummy has accumulated regarding the new machine is: Cost of the machine $80,000 Increased annual contribution margin $15,000 Life of the machine 10 years Required rate of return 6% Yummy estimates they will be able to produce more candy using the second machine and thus increase their annual contribution margin. They also estimate there will be a small disposal value of the machine but the cost of removal will offset that value. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts. Q.Accrual accounting rate of return based on the net initial investment (assume straight-line depreciation). Yummy Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Yummy has accumulated regarding the new machine is: Cost of the machine $80,000 Increased annual contribution margin $15,000 Life of the machine 10 years Required rate of return 6% Yummy estimates they will be able to produce more candy using the second machine and thus increase their annual contribution margin. They also estimate there will be a small disposal value of the machine but the cost of removal will offset that value. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts. Q. Calculate the Net present value for the new machine. Yummy Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Yummy has accumulated regarding the new machine is: Cost of the machine $80,000 Increased annual contribution margin $15,000 Life of the machine 10 years Required rate of return 6% Yummy estimates they will be able to produce more candy using the second machine and thus increase their annual contribution margin. They also estimate there will be a small disposal value of the machine but the cost of removal will offset that value. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts. Q. Calculate the Discounted payback period for the new machine
- A small company that manufactures vibration isolation platforms is trying to decide whether it should replace the current assembly system (D), which is rather labor intensive, now or 1 year from now with a system that is more automated (C). Some components of the current system can be sold immediately for $9000, but they will be worthless hereafter. The operating cost of the existing system is $192,000 per year. System C will cost $320,000 with a $50,000 salvage value after 4 years. Its operating cost will be $68,000 per year. If you are told to do a replacement analysis using an interest rate of 10% per year, which system do you recommend?ABC company sells its products for $16 per item. The fixed cost of the company are 240000 per year and the variable cost per item is $8. The management has been offered an opportunity to move into a smaller facility, which would lower the fixed cost to 200000 however, the variable cost per item would actually increase to $9 at this new facility management had come to your advice. Please calculate the brake even units required for both of the above scenarios. Give these 2 numbers to management. Then give your recommendations to the management team. As to whether they should move to the new facility or not.A recently retired professor, Melinda Marketing, plans to establish the Hot-Air FanCompany and manufacture circulating fans. She estimates the fixed cost of operations tobe $357,500 annually. The variable cost of producing the fans is forecasted to be $85 perunit.a. How many fans must be sold to break even if the fans are priced at $150?b. If Hot-Air sells 6,000 fans, what will be the EBIT?c. If Hot-Air sells 6,000 fans and has interest expense of $8,125, what is Hot-Air’stimes-interest-earned? Hot-Air does not have any nonoperating expenses.d. If the fans are priced at $150, what is Hot-Air’s breakeven sales?
- PT Tamaro has a plastic manufacturing machine. To increase its production capacity, PT Tamaro plans to buy a new machine at a price of 2,400 dollars and an installation of 100 dollars. This machine has an economic life of 5 years with no residual value. projected with this new machine can increase the level of sales to 2000 dollars per year. operational costs that must be borne by the company are the HPP of 40% of sales and $600 in overhead costs including $300 in depreciation costs. The current tax rate is 20% and the desired rate of return is 20%. Make an analysis whether PT Tamaro's plan to purchase this machine is feasible to implement. Use Discounted Payback Period and Net Present Value?Smithson Mechanical Ltd. is considering replacing an existing hoist with a newer, more efficient piece of equipment. The existing hoist has a remaining useful life of 5 years. The new hoist costs CAD 46,000 to purchase and install and alsohas an estimated life of 5 years. It is a Class 5 asset with a CCA rate of 10.0% The company currently produces 8,500 units per year. The new hoist is expected to reduce variable costs by CAD 1.30 per unit and fixed costs by CAD 3,500 year. An increased investment in new working capital of CAD 4,500 will also be required to support the new machine. The existing hoist can currently be sold for CAD 15,000. At the end of 5 years, the existing hoist will have a salvage value of CAD 2,000. The new hoist can be sold for CAD 11,000 at the end of the 5-year period. The project’s RRR is 7.0% and its tax rate is 25.0%. The present value of the net initial cash flows of this project today is closest to: a) CAD -31,090. b) CAD -35,500. c) CAD -43,957. Net…Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $11,500 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 218,000 fill in the blank 1 Sales Price Per Unit $2.15 $fill in the blank 2 Variable Cost Per Unit $1.75 $fill in the blank 3 Contribution Margin Per Unit $0.40 $fill in the blank 4 Fixed Costs $56,000 $fill in the blank 5 Break-Even (in units) 140,000 fill in the blank 6 Break-Even (in dollars) $301,000 $fill in the blank 7 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current New Machine Sales $468,700 $fill in the blank 8 Variable Costs 381,500 fill in the blank 9 Contribution Margin…