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 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 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.
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
$10,000.
The truck's annual mileage is expected to be
27,000
miles in each of the first four years and
12,000
miles in the fifth
year—120,000
miles in total. In deciding which depreciation method to use,
Jacob Nealy,
the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance).Read the requirements
LOADING...
.
Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value.
Begin by preparing a depreciation schedule using the straight-line method.
|
Straight-Line Depreciation Schedule |
||||||||
|
Depreciation for the Year |
||||||||
|
Asset |
Depreciable |
Useful |
Depreciation |
Accumulated |
Book |
|||
|
Date |
Cost |
Cost |
Life |
Expense |
Depreciation |
Value |
||
|
1-1-2018 |
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|
12-31-2018 |
/ |
= |
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|
12-31-2019 |
/ |
= |
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|
12-31-2020 |
/ |
= |
||||||
|
12-31-2021 |
/ |
= |
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|
12-31-2022 |
/ |
= |
||||||
|
1. |
Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. |
|
2. |
On Time prepares financial statements using the depreciation method that reports the highest net income in the early years of asset use. Consider the first year thatOn Time uses the truck. Identify the depreciation method that meets the company's objectives. |
In: Accounting
provide a brief introduction on the topic Cost-Benefit Analysis – Why it is necessary for PICs such as fiji for Accountability
In: Economics
if the demand curve is Q(p)=p*, what is the elasticity of demand? if marginal cost is 1$ 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 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.
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In: Accounting
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.
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
In: Finance
Why is the design of a cost system so much more complicated today than it was when cost accounting was in its infancy?
In: Accounting