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2 years ago

Disposal of Fixed Asset

Business

1 answer:

andreev551 [17]2 years ago

4 0

Answer:

$328000

Explanation:

Given: Cost of machine= $880000

Residual value= 60000

Estimated life= 10 years

Company use straight line depreciation method.

∴ Depreciation = $\frac{\textrm{cost of machine- residual value}}{estimated\ useful\ life}$

⇒ Depreciation= $\frac{880000 - 60000}{10} = \frac{820000}{10}$

∴ Depreciation= $\$ 82000$ per year.

Now, lets find the value of depreciation.

∵ Machine is sold on December 31, 2019, which is 6 years after it is installed.

∴ Depreciation value after 6 years= $\textrm{Depreciation value every year \times number of years used}$

Depreciation value after 6 years= $82000\times 6 = \$ 492000$

Next, finding the value of machine after 6 years of depreciation.

Value of machine after 6 years= $820000 - 492000= \$ 328000$

∴ Disposal value of machine after 6 years of usage is $\$ 328000$ , however, machine was sold at $225000.

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If a company employs two office assistants for every nine architects (a staffing ratio of 2:9) and it plans to expand and hire e

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Answer:

Explanation:

Given:

A company employs two office assistants for every nine architects and

ratio is given = 2:9

Question asked:

How many new office assistants will it need to hire as it plans to hire eighteen new architects = ?

Solution:

Let ratio of new office assistants = $x$

Ratio of two office assistants for every nine architects = 2:9

By using formula of ratio and proportion:

Ratio of two office assistants for every nine architects : : ratio of new office assistants for eighteen new architects,

2 : 9 : : $x$ : 18

$\frac{2}{9} = \frac{x}{18} \\$

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Dividing both side by 9,

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Cryo-vac expects sales to increase 20% next year from the current level of $5,000,000. The firm has current assets of $1,000,000

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Answer:

Consider the following calculations

Explanation:

Current Sales Level = $ 5000000 and Expected Sales Growth Rate = 20 %

Next Year Sales = 5000000 x 1.2 = $ 6000000

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Further, it is assumed that the current assets and current liabilities less notes payable (it is a short-term financing instrument and hence remains unchanged) all increase at the same rate as sales increment. Fixed Assets although increase to support higher sales level, but are part of the firm's investing activities and hence do not bear a direct proportional relationship with the increase in sales.

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velikii [3]

Answer:

Cost structure:

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Explanation:

10 increase in sales:

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to calcualte the increase in profit, we multiply the increase in sales by the contribution margin:

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