Questions
Find the NPV -company considering new car that will cost 1m -it will save 275,000 a...

Find the NPV -company considering new car that will cost 1m -it will save 275,000 a year in costs -car will last for 5 yrs, depreciated at a CCA rate of 20%. -car salvage value is 50,000 at the end of yr 5 -no impact on net working capital -margin tax rate is 40%. -required return is 8%

use formula or finance calculator to show work

In: Finance

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for...

Periodic Inventory by Three Methods; Cost of Merchandise Sold

The units of an item available for sale during the year were as follows:

Jan. 1 Inventory 50 units @ $130
Mar. 10 Purchase 60 units @ $138
Aug. 30 Purchase 20 units @ $142
Dec. 12 Purchase 70 units @ $148

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Merchandise Inventory and Cost of Merchandise Sold
Inventory Method Merchandise Inventory Merchandise Sold
First-in, first-out (FIFO) $ $
Last-in, first-out (LIFO)
Weighted average cost

In: Accounting

Progress Incorporated is considering buying a new machine to increase production. It will cost $200,000 to...

Progress Incorporated is considering buying a new machine to increase production. It will cost $200,000 to purchase, $10,000 to modify and $5,000 to have it installed. It has a five-year class life. At the end of three years they plan to sell the machine for $95,000. The new machine will allow Progress to increase revenues by $80,000 each year but expenses will increase by $5,000 each year. Inventory will decrease by $6,000 and wages payable will increase by $2,000 if the machine is purchased. Straight-line depreciation will be used. Progress’s marginal tax rate is 34% and its cost of capital is 7%. Should PI purchase the new machine? What is the NICO for the project? The Depreciation for year 1 is? The Operating Cash Flow in year 1 is? The firm has a _________of __________ when they sell the machine?

In: Finance

On January 1​, 2018​, On Time Delivery Service purchased a truck at a cost of $75,000....

On

January

1​,

2018​,

On Time

Delivery Service purchased a truck at a cost of

$75,000.

Before placing the truck in​ service,

On Time

spent

$2,200

painting​ it,

$1,700

replacing​ tires, and

$9,100

overhauling the engine. The truck should remain in service for five years and have a residual value of

$10,000.

The​ truck's annual mileage is expected to be

27,000

miles in each of the first four years and

12,000

miles in the fifth

year—120,000

miles in total. In deciding which depreciation method to​ use,

Jacob Nealy​,

the general​ manager, requests a depreciation schedule for each of the depreciation methods​ (straight-line, units-of-production, and​ double-declining-balance).Read the requirements

LOADING...

.

Requirement 1. Prepare a depreciation schedule for each depreciation​ method, showing asset​ cost, depreciation​ expense, accumulated​ depreciation, and asset book value.

Begin by preparing a depreciation schedule using the​ straight-line method.

Straight-Line Depreciation Schedule

Depreciation for the Year

Asset

Depreciable

Useful

Depreciation

Accumulated

Book

Date

Cost

Cost

Life

Expense

Depreciation

Value

1-1-2018

12-31-2018

/

=

12-31-2019

/

=

12-31-2020

/

=

12-31-2021

/

=

12-31-2022

/

=

1.

Prepare a depreciation schedule for each depreciation​ method, showing asset​ cost, depreciation​ expense, accumulated​ depreciation, and asset book value.

2.

On Time

prepares financial statements using the depreciation method that reports the highest net income in the early years of asset use. Consider the first year that

On Time

uses the truck. Identify the depreciation method that meets the​ company's objectives.

In: Accounting

provide a brief introduction on the topic Cost-Benefit Analysis – Why it is necessary for PICs...

provide a brief introduction on the topic Cost-Benefit Analysis – Why it is necessary for PICs such as fiji for Accountability

In: Economics

if the demand curve is Q(p)=p*, what is the elasticity of demand? if marginal cost is...

if the demand curve is Q(p)=p*, what is the elasticity of demand? if marginal cost is 1$ and *= -2, what is the profit maximizing price?

In: Economics

Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company The following information...

Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company

The following information is available for Shanika Company for 20Y6:

Inventories January 1 December 31
Materials $443,170 $553,960
Work in process 797,710 753,390
Finished goods 766,680 770,000
Advertising expense $376,140
Depreciation expense-office equipment 53,180
Depreciation expense-factory equipment 71,460
Direct labor 853,100
Heat, light, and power-factory 28,250
Indirect labor 99,710
Materials purchased 836,480
Office salaries expense 291,940
Property taxes-factory 23,270
Property taxes-headquarters building 48,190
Rent expense-factory 39,330
Sales 3,916,500
Sales salaries expense 480,840
Supplies-factory 19,390
Miscellaneous costs-factory

12,190

1. Prepare the 20Y6 statement of cost of goods manufactured.

Shanika Company
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 20Y6
Work in process inventory, January 1, 20Y6 ______
Direct materials:________
Materials inventory, January 1, 20Y6 ________
Purchases _________
Cost of materials available for use _______
Materials inventory, December 31, 20Y6 ________
Cost of direct materials used in production ________
Direct labor _________
Factory overhead:__________
Indirect labor _________
Depreciation expense-factory equipment _________
Heat, light, and power-factory ___________
Property taxes-factory _________
Rent expense-factory ___________
Supplies-factory __________
Miscellaneous costs-factory _________
Total factory overhead_________
Total manufacturing costs incurred in 20Y6_________
Total manufacturing costs_________
Work in process inventory, December 31, 20Y6 _________

Cost of goods manufactured_________

2.

Prepare the 20Y6 income statement.

Shanika Company
Income Statement
For the Year Ended December 31, 20Y6
Sales ________
Cost of good sold:_________
Finished goods inventory, January 1, 20Y6 _______
Cost of goods manufactured ________
Cost of finished goods available for sale ________
Finished goods inventory, December 31, 20Y6 _________
Cost of goods sold __________
Gross profit __________
Operating expenses:_______
Administrative expenses:_________
Office salaries expense_________
Depreciation expense-office equipment _________
Property taxes-headquarters building __________
Selling expenses:__________
Advertising expense ________
Sales salaries expense ___________
Total operating expenses__________
Net income __________

In: Accounting

Consider a monopolist facing a constant marginal cost of MC = $10 per unit and a...

Consider a monopolist facing a constant marginal cost of MC = $10 per unit and a demand curve of P = 200 – 2q for each individual consumer.

  1. If the monopolist has zero fixed costs, what are its profit and the resulting deadweight loss? How does your answer change if the monopolist also has a fixed cost of $4000?

b. Now the monopolist faces a potential competitor. If the consumer switches to buy the product from the entrant the consumer will receive consumer surplus (net of the price they pay for the good) of $4025. What should the monopolist do now?

In: Economics

A project has an initial cost of $27,000 and a three year life. The company uses...

A project has an initial cost of $27,000 and a three year life. The company uses straight line depreciation to a book value of zero over the life of the project. The project net income from the projects is $1,600, $2,200, and $1,700 a year for the next three years, respectively. What is the average accounting return?

In: Finance

Why is the design of a cost system so much more complicated today than it was...

Why is the design of a cost system so much more complicated today than it was when cost accounting was in its infancy?

  • Your initial post should be at 200-300 words, formatted and cited in current APA style with support from at least 2 academic sources.

In: Accounting