Reference no: EM132957436
Question - Calculations must be done in Excel - The financial advisor to EEW Company is evaluating whether to keep company cars for 3, 4 or 5 years. The following information has been gathered:-
A car costs $60,000 and depreciation is 20% pa straight-line.
Cash expenses are $15,000 per year for the first 2 years, $20,000 in year 3, $30,000 in year 4 and $40,000 in year 5.
The salvage value is expected to be $30,000 after 3 years, $25,000 after 4 years and $15,000 after 5 years.
The after-tax required rate of return is 8% pa and the tax rate is 30%.
Required - Make an analysis to decide whether company cars should be kept for 3, 4, or 5 years before being replaced with new ones.
|
Determine the balances to be presented in the statement
: Determine the balances to be presented in the statement of comprehensive income and statement of financial position as of December 31, 2020
|
|
Briefly discuss the principle of total quality management
: Briefly discuss the principle of Total Quality Management and its application in a manufacturing industry set-up
|
|
Calculate the total budget variance for the current year
: Calculate the total budget variance for the current year using each of the five combinations of exchange rates for translating budgeted and actual results
|
|
Measuring the technology maturity levels
: Discuss the STAM (Science, Technology, Application, and Market) model to measuring the technology maturity levels.
|
|
Make an analysis to decide whether company cars should kept
: Make an analysis to decide whether company cars should be kept for 3, 4, or 5 years before being replaced with new ones
|
|
Difference between induction policies and procedures
: Identify and describe the difference between induction policies and procedures available within most organisations
|
|
What is estimated cost of raw materials purchases for july
: If 101,500 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?
|
|
Compute the number of tickets funday park must sell
: Fixed costs are $325,000 per month. Compute the contribution margin per unit and the number of tickets Funday Park must sell to break even.
|
|
Prepare an income statement based on the absorption costing
: Kodiak Fridgeration Company manu-factured 80,000 mini refrigerators, Prepare an income statement based on the absorption costing concept.
|