Answers
Explanation:
A cost-of-living index is a theoretical price index that measures relative cost of living over time or regions. It is an index that measures differences in the price of goods and services, and allows for substitutions with other items as prices vary.
Related Questions
Transactions for the Bridgeport Company, which provides welding services, for the month of June are presented as follows.
June 1 Bridgeport invests $4,180 cash in exchange for shares of common stock in a small welding business.
2 Purchases equipment on account for $1,070.
3 $740 cash is paid to landlord for June rent.
12 Bills P. Leonard $370 after completing welding work done on account.
Required:
Journalize the transactions.
Answers
Answer:
Explanation: see attached
Natalie had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Natalie prepared the following adjusted trial balance.
COOKIE CREATIONS
Adjusted Trial Balance
December 31, 2021
Debit
Credit
Cash
$1,230
Accounts Receivable
910
Supplies
360
Prepaid Insurance
1,260
Equipment
1,200
Accumulated Depreciation—Equipment
$40
Accounts Payable
80
Salaries and Wages Payable
58
Interest Payable
15
Unearned Service Revenue
310
Notes Payable
2,100
Owner’s Capital
830
Owner’s Drawings
520
Service Revenue
4,623
Salaries and Wages Expense
1,046
Utilities Expense
130
Advertising Expense
170
Supplies Expense
1,065
Depreciation Expense
40
Insurance Expense
110
Interest Expense
15
$8,056
$8,056
Using the information in the adjusted trial balance, do the following.
(a1)
Prepare an income statement for the 2 months ended December 31, 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
COOKIE CREATIONS
Income Statement
choose the accounting period
select an opening name for section one
enter an income statement item
$enter a dollar amount
select an opening name for section two
enter an income statement item
$enter a dollar amount
enter an income statement item
enter a dollar amount
enter an income statement item
enter a dollar amount
enter an income statement item
enter a dollar amount
enter an income statement item
enter a dollar amount
enter an income statement item
enter a dollar amount
enter an income statement item
enter a dollar amount
select a closing name for section two
enter a total amount for section two
select a closing name for this statement
$enter a total net income or loss amount
eTextbook and MediaAssistance Used
eTextbook 1
eTextbook 2
List of Accounts
Attempts: 0 of 3 used
(a2)
(a3)
(b)
(c)
Answers
The income statement for the 2 months ended December 31, 2021 is $2,047.
Income statementRevenue:
Service revenue (A) 4,623
Operating expenses:
Add: Salaries and wages expense 1,046
Add: Utilities expense 130
Add: Advertising expense 170
Add: Supplies expense 1,065
Add: Depreciation expense 40
Add: Insurance expense 110
Total operating expenses (B) 2,561
Operating income (C = A - B) 2,062
(4,623-2,561)
Less: Interest expense 15
Net income $2,047
Inconclusion the income statement for the 2 months ended December 31, 2021 is $2,047.
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The engagement team performed testing of the tax account rollforward and documented the following for testing of the income tax payments for the
current year, "Agreed balance to Tax payments/refunds schedule prepared by the client without exception." Which is the best response as a result of
your review?
Answer the question, then select Confirm
A. You consider the source of the payments/refunds schedule noting it comes from a key system and ITGCs were deemed to be
effective and add this fact to the team's documentation.
B. Additional procedures are not necessary, as the appropriate tie-out procedures were performed.
C. You consider the testing over the accuracy and completeness of management's schedule which has been performed in a
separate EGA, ensure the balance in the rollforward agrees to the testing performed, and enhance the tax team's documentation to
reference the additional testing.
D. As part your review of the team's work, you re-perform their procedures by agreeing the balance to the payments/refunds
schedule obtained from the client.
Confirm
Answers
The best response that you would have as a result of your review would be ; You consider the testing over the accuracy and completeness of management's schedule which has been performed in a separate EGA, ensure the balance in the roll forward agrees to the testing performed, and enhance the tax team's documentation to reference the additional testing.
What does it mean to carry out testing of tax account?This is the term that has to do with the performing of the procedure in such a way that it would be able to take care of an underlying account record or a given transaction.
The answer to this question is option C. You would have to ensure that you consider the testing over the accuracy and completeness of management's schedule.
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Farm products which are perishable and seasonal nature are supplied by
Answers
Answer:
★ Farm products which are perishable and seasonal nature are supplied by many producers.
Explanation:
Hope you have a great day :)
Vintage Manufacturing Inc makes a product which goes through three processesShaping, Baing and Packaging On May 1, 2023, Vintage Manufacturing Inc. had 120,000 units in its work in processInventory, 100% complete with respect to materials and 20% complete with respect to Conversion costs The beginning inventory. materials was valued at $130,000 and conversion:$33.600. During May, 160,000 units were startedin the Shaping Department with 170,000 units transferred to the Baking department during the month. The total cost of material is S570,000 and the total Conversion cost is S1,036.400 Materials are added at the beginning of the process. On May 31, 2023 the company's ending work in procesS was 40% complete as to conversion cost and 100% complete as to materials Required: Using the above information complete the Production Cost Report for the Shaping department
Answers
The Production Cost Report for the Shaping department is as follows:
Vintage Manufacturing Inc. - Production Cost Report (Shaping Department)
------------------------------------------------------------
Units:
- Beginning Inventory: 120,000 units
- Units started: 160,000 units
- Units transferred out: 170,000 units
- Ending Inventory: 110,000 units
Costs:
- Beginning Inventory:
- Materials: $130,000
- Conversion: $33,600
- Current Costs:
- Total Materials Cost: $570,000
- Total Conversion Cost: $1,036,400
Cost per Equivalent Unit:
- Materials: $570,000 / (160,000 + 120,000) = $1.71 per unit
- Conversion: $1,036,400 / (160,000 + 120,000) = $3.13 per unit
Cost Assignment:
- Transferred out:
- Materials Cost: 170,000 units x $1.71 per unit = $290,700
- Conversion Cost: 170,000 units x $3.13 per unit = $531,100
Ending Inventory:
Materials Cost: 110,000 units x $1.71 per unit = $188,100
Conversion Cost: 110,000 units x $3.13 per unit x 40% complete = $137,720
The Production Cost Report for the Shaping department provides information on the units and costs involved in the manufacturing process.
It shows the quantity of units in different stages, including the beginning and ending inventories, units started, and units transferred out. The report also breaks down the costs into materials and conversion costs.
To calculate the cost per equivalent unit, the total materials and conversion costs for the period are divided by the equivalent units of production (units started plus beginning inventory).
This helps in determining the cost per unit for both materials and conversion.
The cost assignment section calculates the cost of the units transferred out and the ending inventory.
For the units transferred out, the cost per unit is multiplied by the number of units transferred. For the ending inventory, the cost per unit is multiplied by the remaining units in inventory and the percentage of completion for conversion costs.
In this case, the Shaping department had a beginning inventory of 120,000 units. During May, 160,000 units were started, and 170,000 units were transferred out.
The ending inventory was 110,000 units. The costs were allocated accordingly, taking into account the cost per unit and the percentage of completion.
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Research the amount of money that banks lose each year due to identity theft hacking counterfiet money qnd other security issues how does this affect the monetary system how does it affect you
Answers
Explanation:
According to a report by Juniper Research, global losses from payment card fraud and online banking fraud are expected to reach $130 billion by 2023. This is a significant increase from the $22 billion in losses reported in 2018. In addition, a 2020 study by Javelin Strategy & Research estimated that identity fraud resulted in $16.9 billion in losses in the US alone.
It is important to note that banks typically do not disclose the exact amount of money lost due to security issues such as identity theft, hacking, and counterfeiting. This is because doing so could undermine confidence in the banking system and lead to a loss of customers.
These losses can have significant impacts on the monetary system, as they can reduce the amount of money that banks have available to lend to individuals and businesses. In addition, they can increase the cost of financial services, as banks may need to invest in additional security measures to protect against fraud.
As an individual, the effects of bank losses due to security issues may not be immediately apparent. However, these losses can ultimately impact the availability and cost of credit, which can affect your ability to obtain loans or credit cards. Additionally, banks may pass on the cost of increased security measures to customers in the form of higher fees or interest rates.
which paragragh of the purchase agreement states that the balance of the purchase price will be deposited into escrow prior to closing
Answers
The paragraph in purchase agreement that states that the balance of the purchase price will be deposited into escrow prior to closing is typically found in section on "Closing and Payment."
What is a purchase agreement?A purchase agreement is a legally binding document that outlines the terms and conditions of a sale between a buyer and a seller. It typically includes details such as the purchase price, payment terms, delivery or shipping arrangements, warranties, representations and warranties of the seller, and any other relevant information related to the transaction. The purchase agreement is designed to protect both parties by ensuring that they understand their rights and obligations and that the transaction proceeds smoothly. Once both parties have signed the agreement, it becomes a legally binding contract and both parties are obligated to fulfill their respective obligations as specified in the agreement.
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What is a periodic adjustment cap?
O A. A limit on how many times the rate can be adjusted
B. A limit on how much an ARM's interest rate can change at each
adjustment period
O C. A limit on a loan's initial interest rate
OD. A limit on how many years a loan can be for
Answers
Answer: B. A limit on how much an ARM’s interest rate can be changed at each adjustment period
Explanation:
how the fourth industrial revolution affects education
Answers
The fourth industrial revolution, also known as Industry 4.0, is bringing about a massive transformation in the way we live, work and learn.
What is industrial revolution?The Industrial Revolution was a period of time in the 18th and 19th centuries when major changes in agriculture, manufacturing, and transportation had a profound effect on the socioeconomic and cultural conditions in Britain.
It is characterized by the increased use of technologies such as artificial intelligence (AI), the Internet of Things (IoT), robotics, and 3D printing. These changes are having a profound effect on education, from the way students learn to the way teachers teach.
One of the major impacts of the fourth industrial revolution on education is the shift from traditional instructional methods to more personalized, adaptive learning. With the use of AI and machine learning, students can now receive tailored instruction and content that is tailored to their individual learning styles and needs. This not only helps to increase student engagement and achievement, but also helps teachers to better meet the needs of their students.
Another way the fourth industrial revolution is affecting education is through the increased use of technology in the classroom. Technologies such as virtual reality and augmented reality are being used to create immersive learning experiences, while collaborative platforms are being used to facilitate group discussions and activities. This increased use of technology is allowing students to gain more hands-on experience and to better understand complex concepts.
Finally, the fourth industrial revolution is also having an impact on how students are assessed. With the use of AI and machine learning, teachers are able to gain insights into student performance and assess them in real time. This not only allows for more accurate assessment and feedback, but also helps to ensure that students are learning the material effectively.
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On January 2, year 1, Union Co. purchased a machine for $264,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 2, year 4, Union determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $24,000. An accounting change was made in year 4 to reflect the additional data. The accumulated depreciation for this machine should have a balance at December 31, year 4, of
Answers
The accumulated depreciation for the machine on Dec 31, Year 4 should be $146,000.
From 1/2/Y1 to 12/31/Y3, depreciation was recorded using an eight-year span on straight line method. Yearly depreciation was $33,000 ($264,000÷8), and accumulated depreciation at 12/31/Y3 was $99,000 ($33,000÷3). In year 4, the estimated useful life was amended and changed to six years total with a salvage value of $24,000.
Therefore, the 12/31/Y3 book value $165,000 ($264,000-$99,000) is depreciated down to the $24,000 salvage value over a remaining useful span of 3 years (6 years total-3 years already recorded). The year 4 depreciation expense is $47,000 [($165,000-$24,000) ÷ 3], thereby increasing accumulated depreciation to $146,000 ($99,000 + $47,000).
Therefore, the accumulated depreciation for the machine on Dec 31, Year 4 should be $146,000.
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An ______is a being, such as a person or company.
Answers
Financial aid letters show your aid and costs of attendance for _____.
Answers
Financial aid letters show your aid and costs of attendance for an academic year.
What is a financial aid letter?This is a letter that a tertiary institution gives to a student to show the cost of their attendance at the college they are currently enrolled in.
The period covered in the letter is the academic year which means that the costs associated with two semesters of attending the university will be shown to the student.
These costs will include things like tuition fees, room and board fees, transportation and other miscellaneous costs.
The letter will also include all the financial aids that the student may receive including federal grants, college grants, state grants, and federal loan options that a person may be eligible for.
In conclusion, financial aid letters show the costs of attendance in an academic year and the aid that comes with it.
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what is crypto currency
what is the use of it
what is profit
Answers
Answer:
A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. For businesses, profit is the positive financial gain remaining after all costs, taxes, and expenses have been deducted from total sales.
After performing Recovery tasks, what should the merchandise on the shelves look like?
Answers
Answer:
store recovery
Explanation:
it's a continual process but the majority of it should be done either just before closing or opening the store.
What are examples of career changes? Check all that apply.
Sonja is a Bus Driver who takes a new job as a Cook in a restaurant.
Alfredo is an Actor for a television show who takes a job acting in a movie.
Marybeth is a Farmworker who grows vegetables and decides to start growing fruit, too.
Joshua is a Security Guard who takes a job as a High School Math Teacher.
Answers
Answer:
It's A and D.
Explanation:
Answer:
A D
Explanation:
which of the following quotes is the best way to tell your boss that you can't accept a new assignment right now?
a. I would like to work on this. but if I take this on I won't be able to meet my current deadline.
b. you know I already have this other deadline
c. I just don't know if I can get this all done
d. I don't have time sorry
Answers
Answer:
a
Explanation:
it would be fine hopefully
The correct quotes are the best way to tell your boss that you can't accept a new assignment right now is "I would like to work on this. But if I take this on, I won't be able to meet my current deadline". Thus, option (a) is correct.
What is assignment?An assignment is a judicial word used in the context of contract and property law. Assignment is the process through which one person, the assignor, passes rights or advantages to another, the assignee.
Assignment is providing someone to a specific job or piece of labor, or assigning someone to a specific location to complete a job.
The simplest approach to inform your supervisor that you can't take on a new job right now is to say, "I'd want to work on this, but if I take it on, I won't be able to fulfill my present deadline." Therefore, it can be concluded that option (A) is correct.
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100 POINTS HELP PLEASE Businesses typically always want to be producing more and more products. Which of the following is also true?
A. Businesses want to sell more at higher prices.
B. Businesses want to sell more at stagnant prices.
C. Businesses want to sell more at lower prices.
Answers
Answer:
A common goal of businesses is to produce more and sell more products. Typically, businesses also want to sell their products at higher prices in order to increase their profits. Therefore, the correct answer is A. Businesses want to sell more at higher prices.
Explanation
Answer:
A
Explanation:
A business will always want to make as much money as possible
Early in January 2019, Tellco Inc. acquired a new machine and incurred $100,000 of interest, installation and overhead costs that should have been capitalized but were expensed. The company earned a net income of $750,000 on average total assets of $5,000,000 for 2019. Assume that the total cost of the new machine will be depreciated over 8 years using the straightline method.Calculate the ROI for Tellco 2019, assuming that the $100,000 had been capitalized and depreciated over 8years using straight line method
Answers
Answer: 18%
Explanation:
To calculate the ROI (Return on Investment) for Tellco in 2019, we need to determine the company's net profit after taxes and divide it by the company's average total assets for the year. Here's how we can calculate this with the given information:
First, we need to adjust the initial cost of the machine to reflect the amount that should have been capitalized, as opposed to expensed. The amount that should have been capitalized is $100,000, so we need to add this to the initial cost of the machine to get the total cost to be depreciated over 8 years:
Total cost of the machine = Initial cost of the machine + Interest, installation, and overhead costs
Total cost of the machine = $0 + $100,000
Total cost of the machine = $100,000
Now we can calculate the annual depreciation expense for the machine using the straight-line method:
Annual depreciation expense = Total cost of the machine / Useful life
Annual depreciation expense = $100,000 / 8
Annual depreciation expense = $12,500 per year
Next, we can calculate the net profit after taxes for Tellco in 2019:
Net profit after taxes = Net income - Interest expense - Depreciation expense - Taxes
Net profit after taxes = $750,000 - $0 - $12,500 - ($750,000 * 35%)
Net profit after taxes = $450,625
Finally, we can calculate the ROI for Tellco in 2019, assuming that the $100,000 had been capitalized and depreciated over 8 years using the straight-line method:
ROI = Net profit after taxes / Average total assets
Average total assets = ($5,000,000 + $0) / 2
Average total assets = $2,500,000
ROI = $450,625 / $2,500,000
ROI = 0.18 or 18%
Therefore, the ROI for Tellco in 2019, assuming that the $100,000 had been capitalized and depreciated over 8 years using the straight-line method, is 18%.

who here has a business plan

Answers
I am still working on my business plan.
Rolan has always been good with numbers. In addition, he has always been able to analyze information and recommend
solutions. Which career pathway is Rolan best suited for?
Marketing Management
Business Analysis
Sales Management
Human Resources
The answer is B ( I did test )
Answers
Answer:
Thank you for the answer!!!!
Explanation:
Answer:
B
Explanation:
1. A business acquaintance promises to deliver a $20 bill to you one year from today. How much should you be willing to pay today for this promise? More than $20 Exactly $20 Less than $20 2. What is the present value of $1,000 received three years from today if interest rates are currently 6 percent? $943.40 $839.62 $1,191.02 $1,000.00 3. What is the interest rate on a three-year investment with a future value of $1000 and a present value of $863.84?
Answers
Answer and Explanation:
The computation is shown below;
1. The willing amount to pay for the promise should be less than $20 that represents the time value of money
2. Now the present value is
= Received amount × discounting factor at 6% for 3 years
= $1,000 × 0.839
= $839
3. Now the interest rate is
As we know that
Future value = Present value × (1 + rate of interest)^number of years
$1,000 = $863.84 × (1 + rate of interest)^3
rate of interest =5% approx
16. Small businesses account for approximately
percent of the gross domestic product in the United States.
A. 70
B. 30
C. 15
D. 60
The correct answer is A
Answers
Answer:
All small businesses in The United states of America all take 70% of their gross domestic product
60 percent of the gross domestic product in the United States. Thus, option (d) is correct.
Depending on how small enterprises are defined and the time period taken into consideration, the actual percentage may change. All authorities, however, concur that small enterprises significantly boost the American economy.
Small businesses maintain the American ideal by generating jobs, fostering innovation, and increasing competitiveness. They are crucial to the nation's economic growth and success because they are more robust in difficult times.
Therefore, option (d) is correct.
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Which of the following items apply to monopolistic competition (choose 3)?
no barriers to entering the market
firms are price searchers
firms are price takers
firms are price setters
high barriers to entering the market
some barriers to entering the market
differentiated products
Answers
Items that apply to monopolistic competition are Firms' price searchers, Differentiated products, and Some barriers to entering the market.
The three items that apply to monopolistic competition are:
1. Firms are price searchers: In monopolistic competition, firms have some degree of control over the price of their products. They engage in price search behavior by analyzing market conditions, customer preferences, and competitors' pricing strategies to determine their own prices. They aim to differentiate their products and attract customers based on unique features, branding, or quality.
2. Differentiated products: Monopolistic competition is characterized by firms offering products that are differentiated in some way. Each firm seeks to distinguish its products from those of its competitors through features, design, branding, or other aspects. This product differentiation allows firms to create a perceived uniqueness in the market and potentially charge higher prices.
3. Some barriers to entering the market: While monopolistic competition does not have significant barriers to entry like pure monopoly or oligopoly, there can still be some barriers. These barriers can include factors such as the need for initial capital, economies of scale, brand loyalty, and intellectual property rights. These barriers, though not insurmountable, create some level of difficulty for new firms to enter the market and establish themselves.
The following options are not applicable to monopolistic competition:
- Firms are price takers: Price takers are typically found in perfectly competitive markets, where individual firms have no control over the price and must accept the prevailing market price as given.
- Firms are price setters: Price setting is characteristic of monopoly markets, where a single firm has substantial market power and can determine the price of its products without significant competition.
- No barriers to entering the market: Monopolistic competition does have some barriers to entry, as mentioned earlier, though they may not be as significant as in other market structures.
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What does it mean for a marketer to use an integrated promotional strategy?
A. Developing a promotional mix in which all methods work together
toward a shared purpose
B. Measuring success in terms of number of people who receive a message, customers' attitudes, and sales volume
C. Promoting products to end users, so they will persuade resellers
to carry the products
D. Promoting products to wholesalers and retailers, so they will in
turn promote to consumers
Please help
Answers
Answer:
the answer is A. Developong a promotional mix in which all methods work together toward a shared purpose.
Explanation:
In order to use an integrated promotional strategy by developing a promotional mix in which all methods work together toward a shared purpose. Thus, option 'A' is the correct option.
What is an integrated promotional strategy?A strategy for communicating a consistent message via all the marketing platforms your brand employs is called integrated marketing. It offers uniformity no matter where clients choose to deal with a business. Without an integrated marketing plan, you run the danger of conveying conflicting information or speaking incoherently.
With the aid of an integrated content strategy, sales prospects may advance through the conversion funnel at their own speed and on their own terms. With awareness-raising and educational content like films, infographics, and whitepapers, your buyer's sales journey gets started. A coordinated strategy, overall corporate goals, and company values are followed by all channels of marketing communications under an integrated approach.
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Albert and his family sell beverages outside the stadium during local football matches. Local football matches take place every day because they are the main form of entertainment in the town. Albert knows that demand for beverages will depend on whom the local team is playing against. Albert has a large amount of beverages stored at home, and whatever does not get sold one day, will be stored for the next day. Based on the expected demand, Albert determines how many coolers will be needed for that day and rents the appropriate number of coolers from a local supplier (the only local supplier of coolers in town). The local supplier of coolers is an avid football fan and therefore opens the store only for a few hours early in the morning before the game. Once Albert has rented the coolers, the store closes until the next day. Which of the following statements are correct about Albert's business?A. For Georgina's business, the number of beverages is always a variable factor and the number of coolers is always a fixed factor. B. Before deciding how many coolers to rent, as long as the supply store is still open, Georgina is facing a long- run decision. C. Once Georgina has rented the coolers and the supplier has closed the store, Georgina is facing a long-run decision. D. Specifically for this problem, the long run could be described as roughly 24 hours. E. The long run is never less than 1 year.
Answers
Answer:
The correct statements about Albert's business:
C. Once Georgina has rented the coolers and the supplier has closed the store, Georgina is facing a long-run decision.
D. Specifically for this problem, the long run could be described as roughly 24 hours.
Explanation:
From the scenario, the variable factors are the number of beverages and the number of coolers for Albert's business. This is because the number of beverages and the number of coolers depend on demand. This eliminates option A. Option B is not a long-run decision but a short-run one. The long-run is a time period when the decision-maker cannot change her decisions to meet the prevailing demands.
Add the following fractions and reduce to lowest terms. 7/34 + 31/34
Answers
Answer:
1 2/17
Explanation:
7/34+31/34=38/34=19/17=1 2/17
Agricultural land includes all of the following EXCEPT which?
Answers
The land that is least conducive to agriculture is sandy soil. This is further explained below.
What is sandy soil?Generally, Light, warm, dry, sandy soil that is acidic and deficient in nutrients is what you may expect to find in a typical climate. Because of their low clay content, sandy soils are often referred to as "light soils."
In conclusion, The term "permanent cropland" includes wooded plantations used to harvest fruit but excludes tree farms and true forests utilized for wood or lumber.
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Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hands. The following information for the two warehouses is available:
Denver Bristol
Cost $80,000 $31,500
Accumulated depreciation 60,000 25,000
Fair value 17,000 17,000
Required:
1. Assuming the exchange has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.
2. Assuming the exchange does not have commercial substance, prepare journal entries for Denver and Bristol to record the exchange.
Answers
Answer and Explanation:
The journal entries are shown below
1.
On Denver books
Equipment Dr $17,000
Accumulated depreciation $60,000
Loss on sale of equipment $3,000
To Equipment $80,000
(Being equipment recorded)
On Bristol books
Equipment Dr $17,000
Accumulated depreciation $25,000
To Gain on sale of equipment $10,500
To Equipment $31,500
(Being equipment recorded)
2.
On Denver books
Equipment Dr $20,000
Accumulated depreciation $60,000
To Equipment $80,000
(Being equipment recorded)
On Bristol books
Equipment Dr $6,500
Accumulated depreciation $25,000
To Equipment $31,500
(Being equipment recorded)
The Woodruff Corporation purchased a piece of equipment three years ago for $230,000. It has an asset depreciation range (ADR) midpoint of eight years. The old equipment can be sold for $90,000.
A new piece of equipment can be purchased for $320,000. It also has an ADR of eight years.
Assume the old and new equipment would provide the following operating gains (or losses) over the next six years:
New Equipment
Year 1: $80,000
Year 2 $76,000
Year 3: $70,000
Year 4: $60,000
Year 5: $50,000
Year 6: $45,000
Old Equipment
Year 1: $25,000
Year 2: $16,000
Year 3: $9,000
Year 4: $8,000
Year 5: $6,000
Year 6: $(7,000)
Question: The firm has a 25 percent tax rate and a 9 percent cost of capital. Should the new equipment be purchased to replace the old equipment? Explain your answer.
Answers
The firm has a 25 percent charge rate and a 9 percent cost of capital the new hardware be bought to supplant the old gear Thus The old hardware can be sold for $90,000.
In financial matters, capital merchandise or capital are "those sturdy delivered merchandise that are thusly utilized as useful contributions for additional creation" of products and services. At the macroeconomic level, "the country's capital stock incorporates structures, gear, programming, and inventories during a given year.
A common model is the hardware utilized in processing plants. Capital can be expanded by the utilization of the elements of creation, which anyway rejects specific tough merchandise like homes and individual vehicles that are not utilized in that frame of mind of saleable labor and products.
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The theory that argue that management should also be concerned about the external environment in which it operates is the
Answers
Answer:
Contemporary theory to Management
Explanation:
The theory that argues that management should also be concerned about the external environment in which it operates is the "Contemporary theory to Management."
Contemporary theory to Management is a form of management theory that describes organization systems as that requires deliberate and careful management that ensures there is a balance between the organizational needs internally while also adapting to the external needs which are environmental-related issues.