lajor medical complexes and their service providers continue to move toward advanced health informatics - acquiring, man nd using information to provide better healthcare. A new analyzer for researching and evaluating patient samples, and maki formed recommendations in the treatment of complex blood cancers, is purchased for $290,000. It is estimated to have a u 6 years and to be sold at the end of that time for $9,500. art a Develop a table showing the depreciation and book value for each year using both the Excel® DDB worksheet function ane Excel® SLN worksheet function such that the depreciation switches from double declining balance to straight-line at the o time. Year Depreciation Book Value

lajor medical complexes and their service providers continue to move toward advanced health informatics - acquiring, man nd using information to provide better healthcare. A new analyzer for researching and evaluating patient samples, and maki formed recommendations in the treatment of complex blood cancers, is purchased for $290,000. It is estimated to have a u 6 years and to be sold at the end of that time for $9,500. art a Develop a table showing the depreciation and book value for each year using both the Excel® DDB worksheet function ane Excel® SLN worksheet function such that the depreciation switches from double declining balance to straight-line at the o time. Year Depreciation Book Value

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Major medical complexes and their service providers continue to move toward advanced health informatics - acquiring, managing, and using information to provide better healthcare. A new analyzer for researching and evaluating patient samples, and making informed recommendations in the treatment of complex blood cancers, is purchased for $270,000. It is estimated to have a useful life of 6 years and to be sold at the end of that time for $10,000. Part a — Develop a table showing the depreciation and book value for each year using both the Excel® DDB worksheet function and the Excel® SLN worksheet function such that the depreciation switches from double declining balance to straight-line at the optimum time. Year 1 2 3 4 5 Your answer is partially correct. 6 $ $ LA $ $ ta $ tA $ Depreciation 43333 $ 43333 43334 $ $ 43334 ta 43333 $ 43333 $ $ Book Value 226667 183334 140000 96667 53334 10000 Carry all interim calculations to 5 decimal places and then round your final answers to 2 decimal…
Friendly Tests Inc. is a commercial testing lab, performing a variety of lab tests for hospitals in the area. The management is considering an addition of a new type of test. There is plenty of room in its existing lab facility, but the new test would require an acquisition of new test equipment. The purchase price of the equipment is $215,000. It will be depreciated using MACRS 7-year recovery period (use the rates listed in Table 16-2 in the textbook). The management expects the demand for the new test type to only last 6 years, and therefore the project is expected to end in 6 years, and the equipment to be sold for$60,000 at the end of year 6. The company will also need to hire a part-time lab technician, for $30,000 in the first year of the project, with an annual pay increase of 5% each year after. Equipment maintenance and operating costs are expected to be $4,000 per year. It is also expected additional supplies will be needed, costing $10,000 per year. The additional revenues…
Friendly Tests Inc. is a commercial testing lab, performing a variety of lab tests for hospitals in the area. The management is considering an addition of a new type of test. There is plenty of room in its existing lab facility, but the new test would require an acquisition of new test equipment. The purchase price of the equipment is $215,000. It will be depreciated using MACRS 7-year recovery period (use the rates listed in Table 16-2 in the textbook). The management expects the demand for the new test type to only last 6 years, and therefore the project is expected to end in 6 years, and the equipment to be sold for$60,000 at the end of year 6. The company will also need to hire a part-time lab technician, for $30,000 in the first year of the project, with an annual pay increase of 5% each year after. Equipment maintenance and operating costs are expected to be $4,000 per year. It is also expected additional supplies will be needed, costing $10,000 per year. The additional revenues…
Friendly Tests Inc. is a commercial testing lab, performing a variety of lab tests for hospitals in the area. The management is considering an addition of a new type of test. There is plenty of room in its existing lab facility, but the new test would require an acquisition of new test equipment. The purchase price of the equipment is $215,000. It will be depreciated using MACRS 7-year recovery period (use the rates listed in Table 16-2 in the textbook). The management expects the demand for the new test type to only last 6 years, and therefore the project is expected to end in 6 years, and the equipment to be sold for $60,000 at the end of year 6. The company will also need to hire a part-time lab technician, for $30, 000 in the first year of the project, with an annual pay increase of 5% each year after. Equipment maintenance and operating cost is expected to be $4, 000 per year. It is also expected additional supplies will be needed, costing $10,000 per year. The additional revenues…
The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $150,000. This asset will be depreciated using an MACRS (GDS) recovery period of three years. Use this information to solve, The BV at the end of the second year is (a) $27,771 (b) $41,667 (c) $116,675 (d) $33,325
22. Glenn Medical Center has seen a growth in patient volume since its primary competitor decided to relocate to a different area of the city. To accommodate this growth, a consul- tant has advised Glenn Medical to invest in a positron-emission tomography (PET) scanner. The cost to implement the unit would be $4,000,000. The useful life of this equip- ment is typically about six years, and it will be depreciated over a six-year life to a $400,000 salvage value. Additional patient volume will yield $3,000,000 in new revenues the first year. These first-year total revenues will increase by $600,000 each year thereafter, but the unit is expensive to operate. Additional staff and variable costs, excluding depreciation expense, will come to $2,200,000 the first year, but these expenses are expected to rise by $400,000 each year thereafter. Over the life of the machine, net working capital will increase by $18,000 per year for six years. a. Assuming that Glenn Medical Center is a…
A hospital is consideving Purchasing a new medical dispensing Cabinet that will cost $200,000. It believes that this cabinet will reduce the amount of labor required to track and administer medications and will also result in fewer expired medicines. It estimates the medical dispensing cabinet will result in a savings of $30000 at the end of year one and that the Savings will increase by $5000 per year for each of the I years that the machine will be used. What is the IRR of this investment? If the hospitals is 12%, Should they inveot in this cabinet? MARR
Required information The Bureau of Indian Affairs provides various services to American Indians and Alaska Natives. The Director of Indian Health Services is working with chief physicians at some of the 230 clinics nationwide to select the better of two medical X-ray system alternatives to be located at secondary-level clinics. X-Ray Systems Del Medical First cost, $ -236,000 Annual operating cost, $/year-217,000 Overhaul in year 3, $ Overhaul in year 4, $ Salvage value, $ Expected life, years -140,000 50,000 6 Siemens -210,000 -221,000 -26,000 10,000 6 At 5% per year, select the more economical system. Solve using tabulated factors. The present worth of Del Medical is $- and the present worth of Siemens is $- The more economical system is (Click to select)
Required information The Bureau of Indian Affairs provides various services to American Indians and Alaska Natives. The Director of Indian Health Services is working with chief physicians at some of the 230 clinics nationwide to select the better of two medical X-ray system alternatives to be located at secondary-level clinics. X-Ray Systems Del Medical First cost, $ -230,000 Annual operating cost, $/year-211,000 Overhaul in year 3, $ Overhaul in year 4, $ Salvage value, $ Expected life, years -140,000 50,000 6 Siemens -204,000 -215,000 -26,000 10,000 6 At 5% per year, select the more economical system. Solve using single-cell spreadsheet functions. The spreadsheet function for calculating the present worth of Del Medical is =-PV(5%,6,-230000,50000) - 211000 - PV(5%,4,,-140000) · the present worth of Del Medical is $- and and the The spreadsheet function for calculating the present worth of Siemens is =-PV (5%,6,,-215000,10000) - 204000 - PV(5%,6,-26000) ► present worth of Siemens is…
! Required information The Bureau of Indian Affairs provides various services to American Indians and Alaska Natives. The Director of Indian Health Services is working with chief physicians at some of the 230 clinics nationwide to select the better of two medical X-ray system alternatives to be located at secondary-level clinics. X-Ray Systems Del Medical First cost, $ -230,000 Annual operating cost, $/year-211,000 Overhaul in year 3, $ Overhaul in year 4, $ Salvage value, $ Expected life, years -140,000 50,000 6 Siemens -204,000 -215,000 -26,000 |-- 10,000 6 At 5% per year, select the more economical system. Solve using single-cell spreadsheet functions. The spreadsheet function for calculating the present worth of Del Medical is (Click to select) the present worth of Del Medical is $- The spreadsheet function for calculating the present worth of Siemens is (Click to select) present worth of Siemens is $- The more economical system is (Click to select) and and the
Janson Pharmaceuticals incurred the following costs in 2018 related to a new cancer drug:Research for new formulas $2,425,000Development of a new formula 1,600,000Legal and filing fees for a patent for the new formula 60,000Total $4,085,000The development costs were incurred after technological and commercial feasibility was established and afterthe future economic benefits were deemed probable. The project was successfully completed and the new drugwas patented before the end of the 2018 fiscal year.Required:1. Calculate the amount of research and development expense Janson should report in its 2018 income statementrelated to this project.2. Repeat requirement 1 assuming that Janson prepares its financial statements according to International Financial Reporting Standards.
Rio Grande Medical Center is needing to expand their HIM department. In order to move forward with the renovation and gain the needed square footage, all old records in storage will need to be archived. After researching the archival process, it is determined the archiving will be done via microfilm with a budget of $300,000 over a two-year period. You have contracted with a company to perform the microfilm services at $0.07 per page and have estimated that there are about 4.5 million pages to be converted. At the end of the first year, you review the invoice and see that you have been billed for converting 2,083,333 pages. Determine your budget variance and what type it is. Provide a short explanation that can be given to administration regarding the variance.