Answer:
The annual depreciation cost the facility will rise by 10% or $4,000,000.
Explanation:
Annual depreciation = 
Annual depreciation = 
Annual depreciation = 10% or $4,000,000
It depends on the contract. But it's mostly what seller do ...
Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. (Omit the "£" sign in your response.)
<span>Shipping Expense: </span>
<span>(86,200 - 45,900) / (5,100 - 2,000) = £13 variable cost per unit </span>
<span>86,200 - (13 x 5,100) = £19,900 fixed cost </span>
<span>£ Y = £19,900 + £13 X </span>
<span>Salaries and Commissions </span>
<span>(238,400 - 114,400) / (5,100 - 2,000) = £40 variable cost per unit </span>
<span>238,400 - (40 x 5,100) = £34,400 fixed cost </span>
<span>£ Y = £34,400 + £40 X </span>
<span>3. </span>
<span>Redo the company’s income statement at the 5,100-unit level of activity using the contribution format. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "£" sign in your response.) </span>
<span>Frankel Ltd. </span>
<span>Income Statement </span>
<span>For the Month Ended June 30 </span>
<span>Sales revenue 912900 </span>
<span>Variable expenses: </span>
<span>Cost of goods sold 346800 </span>
<span>Shipping expenses 5,100 x 13 = 66,300 </span>
<span>Commissions 5,100 x 40 = 204,000 </span>
<span>Contribution margin 295,800 </span>
<span>Fixed expenses: </span>
<span>Fixed shipping 19,900 </span>
<span>Insurance expenses 9000 </span>
<span>Depreciation expenses 42700 </span>
<span>Sales salaries 34,400 </span>
<span>Advertising expenses 69200 </span>
<span>Net operating Income 120600</span>
Answer:
E. They rarely produce net cash flows.
Explanation:
When a company engages with <em>capital budgeting</em>, it assesses potential and planned investments. The goal of each investment is to produce a difference in cash inflows vs. cash outflows, which is the net cash flow.
Therefore, all investments have a tendency of producing a cash flow, since that is the reason why companies opt for capital budgeting (investments) in the start.
It is true that the outcome of capital budgeting is uncertain. Also, it requires significant financial resources, and is a long-term decision.
Answer:
Balance after adjustment will be a credit of $90,000
Explanation:
<em>Particulars Amount</em>
Non-collectible accounts $108,000
Credit balance <u>$18,000</u>
Balance Adjustment <u>$90,000</u>
Balance after adjustment will be a credit of $90,000
Note: Non-collectible accounts = 2% * $5,400,000 =$108000
