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The company is considering replacing part of the current manual labour force by purchasing a small tractor with a forklift for use in loading bricks and concrete blocks. The purchase price would be Sh.570, 000. The tractor will have an economic life of 5 years but would require a Sh.20, 000 overhaul at the end of 3 years. After 5 years the tractor could be sold for Sh.110, 000.
The company estimates it will cost Sh.250, 000 per year to operate the tractor. It will, however, save Sh.130, 000 annually on labour cost. Because of increase in handling efficiency, losses caused by breakages will be cut by Sh.220, 000 per year. Sales will also go up by Sh.450, 000. The new sales level is expected to be maintained throughout the tractor's life. Assume the company's gross margin ratio is 40%, corporate tax rate 30%, and cost of capital 16%. Also assume straight-line method of depreciation
mega chemical company produces zylexa and a related product called zylexb. zylexb. which sells for 15.00 per gallon is
Mr. Robbins medical records indicated that a total of 20 labor hours were directly used in providing his care. The cost of the labor was $380. It was expected before the beginning of the year that a total of 90,000 direct labor hours would be cons..
on january 10 2012 a paid 2100 rent for a storage facility for the period from january 10 through may 31. the rent
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VTC paid the net-of-discount amount on January 6, 2012. Prepare the journal entries on December 28 and January 6 to record the purchase and payment.
consider a multiple-choice examination with 50 questions. each question has four possible answers. assume that a
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if department k had 2500 units 45 completed in process at the beginning of the period 15000 units were completed during
Roxbury Manufacturing Company is a privately owned business. Products manufactured by Roxbury had been doing very well until the year
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On the first day of the fiscal year, a company issues a $2,000,000, 12%, Journalize the bond issuance
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