Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: Use of Gross or Net Book Value of Fixed Assets Assume that a machine shop acquires $520,000 of fixed assets with a useful life of 4 years and no residual value. The shop uses straight-line depreciation. The company judges the shop manager based on income in relation to these fixed assets. Annual net income, after deducting depreciation, is $20,000. Assume that sales, and all expenses except depreciation, are on a cash basis. Dividends equal net income. Thus, cash in the amount of the depreciation charge will accumulate each year. The plant manager's performance is judged in relation to fixed assets because all current assets, including cash, are considered under central-company control. Assume (unrealistically) that any cash accumulated remains idle. Ignore taxes.
1. Prepare a comparative tabulation of the plant's rate of return and the company's overall rate of return based on
a. gross (i.e., original cost) assets.
b. net book value of assets.
2. Evaluate the relative merits of gross assets and net book value of assets as investment bases.
Payback Period and NPV of a Cost Reduction Proposal - Determine the payback period of the incremental investment if gasoline costs $3.50 per gallon
dester manufacturing company makes a product that it sells for 50 per unit. the company incurs variable manufacturing
porter corporations balance sheet at december 31 2011 is presented below.porter corporation balance sheet december 31
Expected sales: June $507,300, July $608,800. Compute the budgeted merchandise purchases for June
Conway and Bangor Ltd. has an authorised capital of £30,000 divided into 20,000 ordmary shares of £1 each and 10,000 6 per cent preference shares of £1 each.
What are some of the benefits organizations seek to achieve through using information systems?
should charity begin with the politician? a recently retired political figure has decided to start a charity for a
A firm is evaluating an accounts receivable change that would increase bad debts from 2% to 4% of sales. Sales are currently 50,000 units, the selling price is $20 per unit, and the variable cost per unit is $15. As a result of the proposed change,..
Create a chart summarizing the details of the investment for both Bob and Lisa. Explain the results in terms of time value of money.
data not yet recorded at december 31 2011 included a. the supplies count on december 31 2011 reflected 240 remaining
on january 2 2012 indian river groves began construction of a new citrus processing plant. the automated plant was
vincent pays 20000 for equipment to use in his trade or business. he pays sales tax of 800 as a result of the purchase.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd