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Illusion [34]
2 years ago
10

Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1,

the company purchased equipment that cost $120,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. Golden Manufacturing earned $72,000 and $83,000 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation.
Required

a. Record the purchase in a horizontal statements model.
b-1. Prepare income statements for Year 1 and Year 2.
b-2. Prepare balance sheets for Year 1 and Year 2.
b-3. Prepare statements of cash flows for Year 1 and Year 2.

Business
1 answer:
NISA [10]2 years ago
8 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Christine is an unemployed stenographer who cannot find work in Florida. There are several companies hiring stenographers in New
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Answer:

Option (b) is correct.

Explanation:

Cyclical unemployment refers to the unemployment that occured because of the fall in the demand for goods and services in an economy. It is largely affected by the fluctuations in economic growth of a country. When the overall demand for goods and services are not matched with the full employment in an economy. This unemployment is mostly occured when the economy of a country is contracting.

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2 years ago
Determines whether the pricing and room allocation for a particular rate or market segment should be increased, decreased, or cl
LUCKY_DIMON [66]

Answer:

The Answer for the particular statement is "FALSE".

Explanation:

  • Sales Management System is a program used to forecast customer demand, automate the inventory of inventories and costs and increase revenue growth.
  • Sales management is a systemic method aimed at increasing sales by using width-of-stay monitoring tools and by introducing efficient marketing strategies.

therefore the statement is NOT TRUE.

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2 years ago
Suppose that a delivery company currently uses one employee per vehicle to deliver packages. Each driver delivers 60 packages pe
lisabon 2012 [21]

Answer:

a. What is the MRP per driver per day?

  • the marginal revenue product per driver = 60 packages x $20 = $1,200 per day

b. Now suppose that a union forces the company to place a supervisor in each vehicle at a cost of $300 per supervisor per day. The presence of the supervisor causes the number of packages delivered per vehicle per day to rise to 60  packages per day What is the MRP per supervisor per day? By how much per vehicle per day do firm profits fall after supervisors are introduced?

  • if the drivers were already delivering 60 packages per day without the supervisor, then the addition of the supervisor doesn't change anything. So the MRP of the supervisor is $0. That means that the company's profits will decrease by $300 per day due to the supervisors.

c. How many packages per day would each vehicle have to deliver in order to maintain the firm's profit per vehicle after supervisors are introduced?

  • $300 / 20 = 15 packages per day
  • in order to maintain the profit per vehicle, each team of delivery man + supervisor should be able to deliver 75 packages per day.

d. Suppose that the number of packages delivered per day cannot be increased but that the price per deliver might potentially be raised. What price would the firm have to charge for each delivery in order to maintain the firm's profit per  vehicle after supervisors are introduced?

  • $300 / 60 = $5
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6 0
2 years ago
Reggie owns and operates a cheese shop in the village of Somerset. Although Reggie has a degree in mechanical engineering and co
Artyom0805 [142]

Answer:

A. 27,000

B. 77,000

Explanation:

What is Reggie's accounting profit?

REVENUE - EXPENSES AND DEPRECIATION

90000-18000-6000-3000=63000

What is Reggie's economic profit?

REVENUE - EXPENSES AND DEPRECIATION - IMPLICIT COSTS

90000-18000-60000-3000-76000 = -13000

1) accounting profit = TR - explicit cost

= 90,000 - 63,000

= 27,000,

2) economic profit = TR - economic cost

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3 0
2 years ago
FARO Technologies, whose products include portable 3D measurement equipment, recently had 36 million shares outstanding trading
erma4kov [3.2K]

Answer:

A. $117 million

B.13%

C. $21.75

Explanation:

B. Calculation to determine How large a loss in dollar terms will existing FARO shareholders experience on the announcement date

Expected Loss= 390*30%

Expected Loss= $117 millions

Therefore How large a loss in dollar terms will existing FARO shareholders experience on the announcement date will be $117 millions

B. Calculation to determine What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss

First step is to calculate the Existing Shares Value

Existing Shares Value =36*$25

Existing Shares Value= $900 millions

Now let calculate the Expected Loss %

Expected Loss % = $ 117/$ 900

Expected Loss % = 13%

Therefore the percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss will be 13%

C. Calculation to determine At what price should FARO expect its existing shares to sell immediately after the announcement

Price Per Share: $ 25*(1 - 0.13)

Price Per Share$25*0.87

Price Per Share: $21.75

Therefore what price should FARO expect its existing shares to sell immediately after the announcement is $21.75

6 0
2 years ago
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