Depreciable cost, Cost Accounting

A organization is evaluating a proposed 4-year project.  The depreciable cost will have the following: $300,000 for the equipment, $20,000 for shipping, and $30,000 for installation. The depreciation life is under the MACRS 3-year class, with a salvage value of $45,000. The inventories will increase by $18,000 and accounts payable will rise by $3,000. In addition, the new sales are estimated to be 150,000 units per year at $2.25 per unit. There is a variable operating cost that is 60% of sales and the company's marginal tax rate is 35%.  Do parts (a) through (c) below.

a) Verify the net operating cash flow for the initial year (Year 0).

b) Verify the net operating cash flow for Years 1, 2, and 3.

c) Verify the net terminal year cash flow.

Posted Date: 3/26/2013 9:03:56 AM | Location : United States







Related Discussions:- Depreciable cost, Assignment Help, Ask Question on Depreciable cost, Get Answer, Expert's Help, Depreciable cost Discussions

Write discussion on Depreciable cost
Your posts are moderated
Related Questions
The data set for the assignment is about breast cancer.  Some of these data have been changed for the purposes of this assignment so the results from the analysis of this file may

Blox ($) Shapez ($) Direct material per unit 10 23 Direct labour per unit 19 32 Manufacturing overhead per unit 7 10 Selling & Admin. expenses per unit 17 31 T

Waylander Coatings Company purchased waterproofing equipment on January 6, 2013, for $320,000.The equipment was expected to have a useful life of four years, or 20,000 operating ho

Inventory Management and Control Here the objectives of inventory management are as: 1. To ensure adequate stocks to permit for continuous production/operations, and

Differentiate between Multiple Products, Selling Costs and Margin Management


What are the five accounts used in adjusting entry for periodic inventory at the end of the year?

Estimate the manufacturing cost for a bearing housing following the Formula Student Costing Scheme.  Dimensions and materials of the bearing housing will depend on your student

#questionFrame-it Ltd is a manufacturer of metal picture frames. The firm''s two product lines are designate S (small frames: 12 x18 cm) and L (large frames: 20 x 25 cm). The prima

Cost sheet is a declaration of cost for a product for given period of time.