User Account

All Pages

Determine the payback period using the accumulated cash flow

Assignment Help Accounting Basics
Reference no: EM132084619

Barker Company has an opportunity to purchase a forklift to use in its heavy equipment rental business. The forklift would be leased on an annual basis during its first two years of operation. Thereafter, it would be leased to the general public on demand. Barker would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow.

Year   Nature of Item Cash Inflow Cash Outflow
2015   Purchase price       $ 97,600  
2015   Revenue $ 39,500        
2016   Revenue   39,500        
2017   Revenue   28,500        
2017   Major overhaul         9,900  
2018   Revenue   25,500        
2019   Revenue   23,500        
2019   Salvage value   8,700        

Required

a.  Determine the payback period using the accumulated cash flows approach.

Reference no: EM132084619

Questions Cloud

Significance of renaissance-preconditions : Significance of Renaissance: preconditions; rise of the city-states, internal conflict and Guelfs and Ghibellines
Calculate the retained earnings balance as of december : From the data - Calculate the Retained Earnings balance as of December 31, 2014
War and revolutions : Discuss the consequences of the major wars and revolutions that occurred in Western and Eastern Europe during the early 19th through mid-20th centuries.
According to his agreement with the spanish crown : According to his agreement with the Spanish crown, what rewards would Columbus receive if he found a water route to Asia?
Determine the payback period using the accumulated cash flow : Determine the payback period using the accumulated cash flows approach - Barker would sell it at the end of the fifth year of its useful life
Reasons for low productivity in manorial economy : What was the reasons for low productivity in manorial economy during medieval Europe?
Identify and explain the term secret of the west : Identify and explain the term "Secret of the West". Why has the West been able to dominate the world in regards to 18th-19th century
Prepare the eliminating entries required for the preparation : Prepare the eliminating entries required for the preparation of a consolidated statements workpaper on December 31, 2014, assuming the use of the cost method
What is the amount of the capitalization of retained earning : What is the amount of the capitalization of retained earnings for the stock dividend - How many common shares are outstanding on each cash dividend date

Reviews

Write a Review

Accounting Basics Questions & Answers

  Stone co began operations in year 1 and reported 225000 in

stone co. began operations in year 1 and reported 225000 in income before income taxes for the year. stones year 1 tax

  Prepare a production cost

Beginning work-in-process inventory (1/3 complete) 6,000 units. Prepare a production cost worksheet using the FIFO method

  Knox company begins operations on january 1 because all

be2-1 knox company begins operations on january 1. because all work is done to customer specifications the company

  Relational database software can be used very effectively

relational database software can be used very effectively in detecting fraud in the account- ing information system.

  Record alpha company general journal entry

Use this information to record Alpha Company's General Journal Entry (without explanation) for June 30, 2016

  Characteristics of a partnership

Characteristics of a partnership - List the seven items that would need to be incorporated into the written partnership agreement.

  Jack herington has owned and operated a proprietorship for

jack herington has owned and operated a proprietorship for several years. on january 1 he decides to terminate this

  What is the amount and character of butte gain or loss

Butte sold a machine to a machine dealer for $50,000. What is the amount and character of Butte's gain or loss

  The company uses the straight-line method to amortize

On January 1, a company issued and sold a $394,000, 9%, 10-year bond payable, and received proceeds of $389,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal ..

  Wnat journal entries

The company pays $44,900 to tear down the old building and $66,374 to fill and level the lot. It also pays a total of $1,857,382 in construction costs"this amount consists of $1,747,100 for the new building and $110,282 for lighting and paving a p..

  Should walters company sell their products in the

walters company is considering producing 120000 pounds of paperclips and 140000 pounds of staples each month from their

  Pizza company demand analysis

The Pizza Company is considering entering the marketplace in your community. Use the information from "The Pizza Company Data" worksheet, located in Week 3 (attachment)  of your course shell, to complete this assignment.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd