Santana rey is considering the purchase of equipment for

Assignment Help Accounting Basics
Reference no: EM13608392

Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $264,000 and to have a six-year life and no salvage value. It will be depreciated on a straight-line basis. Business Solutions expects to sell 100 units of the equipment's product each year. The expected annual income related to this equipment follows. Sales $ 379,000 Costs Materials, labor, and overhead (except depreciation) 196,000 Depreciation on new equipment 44,000 Selling and administrative expenses 33,000 Total costs and expenses 273,000 Pretax income 106,000 Income taxes (30%) 31,800 Net income $ 74,200 Please show steps: Compute payback period: Compute the accounting rate of return for this equipment:

Reference no: EM13608392

Questions Cloud

Santana rey is considering the purchase of equipment for : santana rey is considering the purchase of equipment for business solutions that would allow the company to add a new
What amount would silverton show for income from continuing : the following amounts are from silverton co.s 2014 income statementsales
Regulation requires the measurement of contaminant flow : 1.the daily flow rate of contaminant from an industrial plant is modeled by a normal random variable with a mean value
Trinity hall society a college fraternity purchases a new : trinity hall society a college fraternity purchases a new heavy-duty washing machine on january 1 2005. the machine
Santana rey is considering the purchase of equipment for : santana rey is considering the purchase of equipment for business solutions that would allow the company to add a new
Spencer company sells 10 bonds having a maturity value of : spencer company sells 10 bonds having a maturity value of 3000000 for 2783724. the bonds are dated january 1 2012 and
On may 1 2012 carly company purchased 72000 of 8 15-year : on may 1 2012 carly company purchased 72000 of 8 15-year baltimore company bonds at par plus two months accrued
An object that is 5 cm in height is placed 30 cm in front : an object that is 5 cm in height is placed 15 cm in front of a diverging lens with a focal length of -35 cm. what is
The monteiro manufacturing corporation manufactures and : the monteiro manufacturing corporation manufactures and sells folding umbrellas. the corporations condensed income

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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