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muminat
2 years ago
10

Central Supply purchased a new printer for $67,500. The printer is expected to operate for nine (9) years, after which it will b

e sold for salvage value (estimated to be $6,750). How much is the first year’s depreciation expense if the company uses the double-declining-balance method? A. $15,000 B. $ 7,500 C. $18,000 D. $13,500 E. None of the above
Business
1 answer:
Sergeu [11.5K]2 years ago
8 0

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Central Supply purchased a new printer for $67,500. The printer is expected to operate for nine (9) years, after which it will be sold for salvage value (estimated to be $6,750).

Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]

Year 1= 2*[(67,500 - 6,750)/9]= $13,500

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As a finance manager at Outdoor Adventure Sporting Goods, Roman worries about the firm's borrowing requirements for the upcoming
riadik2000 [5.3K]

Answer:

cash flow budget

Explanation:

A cash budget estimates cash inflows and outflows (net cash flows) and is the basic tool for determining a company's borrowing needs, debt repayment, operating expenses, and short-term investments.

The difference between accounting and finance is that accounting relies on past events, while finance has to anticipate to future events. The basic and most important tool in finance is the cash flow budget. A company can have huge sales but if it doesn't enough cash to pay its expenses and debts, then it will not function properly.

4 0
2 years ago
QUESTION 11 Given the following information, calculate the equity dividend rate for this investment: first-year NOI: $18,750; be
Alja [10]

Answer: D. 2.2%

Explanation: Equity Dividend Rate is calculated by dividing the Before Tax Cash Flow by the Acquisition price. If you need the answer in percentage form, you then multiply by 100.

Here, before-tax cash flow =  $11,440

Acquisition price = $520,000

So Equity Dividend Rate = \frac{11440}{520000} X 100

     Equity Dividend Rate = 2.2%

In this question, you do not need the Net Operating Income (NOI). You only need the NOI if the Before Tax Cash Flow is not given and the debt service payment is. If this is the case, you subtract the debt service payment from the NOI to get the Before Tax Cash Flow.

4 0
2 years ago
Explain the steps you take to complete an Internet search. Do you use a particular search engine every time or do you alternate?
klio [65]
This is based on your opinion :\ I use google tho
3 0
2 years ago
We are evaluating a project that costs $2,040,000, has a life of 7 years, and has no salvage value. Assume that depreciation is
OleMash [197]

Answer: best case Nvp $2,943,304,509.57

Worse case NVP

-$2, 601,609,39

3 0
2 years ago
Read 2 more answers
g Western Electric has 27,500 shares of common stock outstanding at a price per share of $70 and a rate of return of 13.45 perce
Ede4ka [16]

Answer:

The WACC is 10.93%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital stricture may be formed of the following components namely debt, preferred stock and common stock. The WACC assigns the weights to each of these components based on the finance provided by each of the above components as a proportion of total capital structure or total assets.

The WACC is calculated by taking the market value of each component. The formula for WACC is as follows,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component
  • r represents the cost of each component
  • D, P and E represents debt, preferred stock and Common stock respectively.
  • We take after tax cost of debt. So we multiply rD with (1-tax rate)

Debt = 377000 * 106.5%  = $401505

Preferred stock = 6850 * 90.50  =  $619925

Common stock = 27500 * 70  = $1925000

Total assets = 401505 + 619925 + 1925000  = $2946430

WACC = 401505/2946430 * 7.81% * (1-0.35)  +  619925/2946430 * 6.9%  +

1925000/2946430 * 13.45%

WACC = 0.1093 or 10.93%

6 0
2 years ago
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