Plenti-Good Foods has ending net fixed assets of $98,700 and beginning net fixedassets of $84,900. During the year, the firm sold assets with a total book value of$13,200 and also recorded $9,800 in depreciation expense. How much did thecompany spend to buy new fixed assets?a. -$23,900b. $40,700c. $37,400d. $9,200e. $36,800

Capital spending is the amount spend by the company to purchase new fixed assets and is long term…

Answered: Plenti-Good Foods has ending net fixed…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Dillard Company starts the year with $10,000 in its cash account, $10,000 in its equipment account, $3,000 in accumulated depreciation and $17,000 in its retained earnings account. During the year Dillard sells the equipment for $6530. After the sale of equipment is recorded, the retained earnings account will have a balance of $________.
Flubber Products has current assets of $60,000 and total assets of $340,000. The firm’ssales are $700,000. Flubber’s interest expense is $25,000. All assets are classified asbeing either current assets or fixed assets. Flubber’s fixed asset turnover is?
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Subject : Accounting
Net Present Value Method The following data are accumulated by Paxton Company in evaluating the purchase of $150,000 of equipment having a four-year useful life: Net Income Net Cash Flow Year 1 $ 42,500 $80,000 Year 2 27,500 65,000 Year 3 12,500 50,000 Year 4 2,500 40,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 a. Assuming that the desired rate of return is 15%, determine the net present value for the proposal. (If required, round to the nearest dollar.) Use the table of the present value of $1 presented above. Present value of net cash flow $…
4. Robert owns of RPM which involve in manufacturing business The cash flow profile of RPM Enterprise indicates that it made a capital investment of BD90,000 that generates an annual revenue of BD25,000 and an operating cost of BD3,500 yearly. Also, the value of its properties at the end of five (5) years is worth BD20,000. If MARR is 15% per annum compounded annually Show computation of Depreciation- any method will do such as SL, SF, DB, or Service Output if applicable
Net present value method The following data are accumulated by Waiola Company in evaluating the purchase of $150,000 of equipment, having a 4-year useful life: Net Income Net Cash Flow $55,000 42,000 32,000 21,000 Year 1 Year 2 Year 3 Year 4 Year 1 2 3 4 5 6 7 8 9 10 0.943 Present Value of $1 at Compound Interest 6% 12% 10% 0.909 0.893 0.870 0.694 0.826 0.797 0.756 0.751 0.683 0.636 0.712 0.658 0.579 0.572 0.482 0.621 0.567 0.497 0.402 0.747 0.705 0.432 0.335 0.564 0.507 0.513 0.452 0.376 0.279 0.665 0.404 0.327 0.233 0.627 0.592 0.467 0.424 0.361 0.558 0.386 0.322 0.284 0.194 0.247 0.162 0.890 0.840 $32,000 20,000 10,000 (1,000) 0.792 15% 20% 0.833 a. Assuming that the desired rate of return is 6%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. Present value of net cash flow Amount to be invested Net present…
During the past two years, through extensive advertising and improved customer relations, jEAN Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange may amortize. a.$26,667 b.$-0- c.$16,667 d.$33,333
15. The Lucio Corporation presented the following balances from the historical peso income statement for the year ended December 31, 2018: Sales P350,000 Cost of goods sold Depreciation - building Depreciation - equipment All other expenses Other information include: 218,000 34,000 23,000 48,000 • Merchandise available for sale came from 2017 inventory of P28,750 and 2018 purchases of P220,000. Building costing P850,000 was acquired at the end of 2015. Equipment totalled P115,000, of which P85,000 was bought at the end of 2015 and P30,000 was bought at the end of 2017. • The company uses the FIFO method of inventory valuation; average indexes for the year are used in restating inventories. General price indexes at year end are as follows: 2015 - 100 2017 - 106 2016 - 102 2018 - 112 (assume that all changes in the general price level index tool place more or less evenly during the year.) What should Lucio Corporation report as net income for the year ended December 31, 2018 restated for…
Green Farms, Inc. had sales of $500,000, cost of goods sold of $180,000, selling and administrative expense of $70,000, and operating profit of $90,000. What was the value of depreciation expense? a.$230,000 b.None of these c.Less than $170,000 d.$170,000
Net Present Value Method The following data are accumulated by Paxton Company in evaluating the purchase of $98,400 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $37,000 $63,000 Year 2 23,000 49,000 Year 3 11,000 37,000 Year 4 (1,000) 25,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 a. Assuming that the desired rate of return is 20%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value.…
ADDITIONAL INFORMATION During the year A company sold equipment with an original cost of 153000$ and accumulated depreciation of 119000$ and purchased new equipment for 272000.

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