Company is contemplating the purchade of new machine

Assignment Help Financial Accounting
Reference no: EM131294999

A company is contemplating the purchade of a new machine that will cost $31,500 and geneate additional revenues of $23,250 a year. Additional cost other than depreciation will be 7 years and there will be no salvage value. What is ARR?

Reference no: EM131294999

Questions Cloud

Differences between accounting income and taxable income : Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performe..
When revenues and expenses are recognized on the cash method : You have a contract for $200,000. The following events occur: March 1 – the project starts March 20 – The subcontractors bill for $80,000 to the contractor Between March 1 and March 31 – 45% of the contract was completed April 10. Determine when reve..
When using dollar-value lifo retail method for inventory : The second step, when using dollar-value LIFO retail method for inventory, is to determine the estimated:
Annual discount for deadbolts-discount for smoke detectors : Dave and Ellen are newly married and living in their first house. The yearly premium on their homeowner’s insurance policy is $550 for the coverage they need. Their insurance company offers a 8 percent discount if they install dead-bolt locks on all ..
Company is contemplating the purchade of new machine : A company is contemplating the purchade of a new machine that will cost $31,500 and geneate additional revenues of $23,250 a year. Additional cost other than depreciation will be 7 years and there will be no salvage value. What is ARR?
Determine whether the transactions are taxable : Determine whether the following transactions are taxable. If a transaction is not taxable, indicate what type of reorganization is effected, if any.  Alpha Corporation owns assets valued at $400,000 and liabilities of $100,000. Beta Corporation trans..
Under the retail inventory method : Under the retail inventory method: Lou Lewis borrows $10,000 to be repaid over 10 years at 9%. Repayment of principal in the first year is ______.
Inventory on the company balance sheet : Jensen Tire had two large shipments in transit at December 31. One was $130,000 inbound shipment of merchandise (shipped December 28, F.O.B. Shipping point), which arrived at jensen'ts receiving doc on Jan 2. What amount should apprea as inventory on..
When organizers-directors apply for not-for profit status : When organizers and directors apply for not-for profit status from a state, they are subject to which of the following?

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Project financially feasible

Assume that market rents are $25 per square foot, vacancy and collection loss is 5 percent, and operating expenses are $6.75 per square foot. If the total project costs are $140 per square foot and the investor requires a return of 10 percent, is thi..

  Question 1 show all calculations to support your answers

question 1 show all calculations to support your answers. round all probability calculations to 2 decimal places.a

  What common internal control weaknesses contributed to fraud

What common internal control weaknesses contributed to this fraud?

  Explain the primary ways in which finance leases

Evaluate whether ABC Wines should go ahead with the installation of the new irrigation system and whether they should use the purchase or the lease option and explain the primary ways in which finance leases differ from operating leases.

  Prepare quarterly manufacturing overhead budget

The fixed overhead and variable costs for product manufacturing company SCANDAL Pope Rowan are listed below: Prepare a quarterly manufacturing overhead budget for 2016.

  What is the present value of the offer

Each year he will receive a bonus equal to 10 percent of his salary. Mr. Adams is expected to work for 25 years. What is the present value of the offer if the discount rate is 12 percent?

  Beginning inventory

The beginning inventory is expected to be 2,000 cases. expected sales are 10,000 cases, and the company wishes to begin the next period with an inventory of 1,000 cases.

  After-closing balance in the retained earnings account

As of December 31, 2014, Blue Haven Company had total assets of $180,000, total liabilities of $54,000, and common stock of $90,000. The company’s 2014 income statement contained revenue of $32,000 and expenses of $19,000. Determine the before-closin..

  Job order manufacturing-process are two major costing system

Job order manufacturing and process are two major costing system used in manufacturing. Briefly contrast the characteristics of these two systems.

  Computing the indifference level of ebit between these two

computing the indifference level of ebit between these two alternatives.moon and chittenden are considering a new

  What is its self-supporting growth rate

Maggie's Muffins, Inc., generated $4,000,000 in sales during 2016, and its year-end total assets were $2,400,000. Also, at year-end 2016, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

  What will be the net cash flow for year one of project

Your company has spent $260,000 on research to develop a new computer game. The firm is planning to spend $46,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $5,..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd