On May 5, 2017, Lloyd purchased a machine for $84,000. The estimated life of the machine was 10 years, with an estimated residual value of $10,000. The service life in terms of “output” is estimated at 8,000 hours of operation. Assume Lloyd uses the units-of-output method and that the machine was in operation for 1,000 hours in 2017 and 1,800 hours in 2018. The book value of the machine at December 31, 2018 is:

$48,100

$56,700

$25,900

$58,100

Kelley, Inc. provided the following account balances for 2018:

Calculate the average number of days that inventory was held by Kelley, Inc. during 2018. (Assume 365 days in a year. Round your intermediate calculations and final answer to two decimal places.)

1. Various Financial data for 2018 and 2019 follows. Calculate the total productivity measure and the partial measures for labour, raw materials, and energy for this company for both years. What do these measures tell you about this company? [All numbers are in $].

                                                                           2018                                 2019

Output:   Sales                                          $375,000                        $445,000

Input:     Labour                                       127,000                          199,950

              Raw materials                             68,500                           64,250

                 Energy                                            37,250                          47,050

                 Other                                              10,450                           20,200

Eckland Manufacturing Co. purchased equipment on January 1, 2016, at a cost of $90,900. Straight-line depreciation for 2016 and 2017 was based on an estimated eight-year life and $2,100 estimated residual value. In 2018, Eckland revised its estimate and now believes the equipment will have a total service life of only six years, while the residual value remains the same.

Required:
Compute depreciation for 2018 and 2019.

Brief Exercise 11-7

Novak Company purchased a computer for $8,880 on January 1, 2016. Straight-line depreciation is used, based on a 5-year life and a $1,110 salvage value. In 2018, the estimates are revised. Novak now feels the computer will be used until December 31, 2019, when it can be sold for $555.

Compute the 2018 depreciation. (Round answer to 0 decimal places, e.g. 45,892.)

Fred McReynolds is the accountant for Y Ltd and conducted the following analysis of the change in operating income between 2018 and 2019:

Operating income for 2018            $4,450,000

Add growth component 70,000

Add price-recovery component 392,000

Deduct productivity component   (55,000)

Operating income for 2019            $4,857,000

Required:

Explain whether Y Ltd’s operating income increase is consistent with the product differentiation or cost leadership strategy?

John Company purchases used equipment form Moore Inc. on January 1, 2018 issuing a zero-interest note for $4,000,000 that matures in 4 years. The market value of the equipment is not readily available. John Company’s normal borrowing rate is 8%:

a. Record the journal entries at January 1, 2018 (at purchase), the interest entry (if necessary) for each year until maturity of the note and the entry to record the maturity of the note.

linton company purchased a delivery truck for 33.000 on january 1 2017 the truck has an expected salvage value of 1,300 and is expected to be driving 109,000 miles over its esitmated useful of life of 9 years. acutal miles driving were 15,400 for 2017 and 12,500 in 2018 what is the depreication expense for 2017 and 2018 using the stright line method , the unit of activity method and the decling balance method

Using the following free cash flow data:

Year                Cash Flow

2017                $4,000,000

2018                $4,400,000

1. Prepare a 10-year cash flow forecast based upon the rate of growth in cash flow between 2017 and 2018.
2. Calculate the net present value of the forecasted cash flows assuming an immediate investment cost of $18,500,000

Please show your work so I can recreate in excel