explain how we got the depreciation and interest on capital
Homework Answers
| Year | Book Value | Resale Value | Depriciation | Remarks | Interest on Capital @ 10% |
| 1 | $ 800.00 | $ 600.00 | $ 200.00 | 800-200= 600 (book Value) | $ 80.00 |
| 2 | $ 600.00 | $ 450.00 | $ 150.00 | 600-150=450 (book Value) | $ 60.00 |
| 3 | $ 450.00 | $ 200.00 | $ 250.00 | $ 45.00 |
To calculate Deprictiaion and Interest on capital, first we need to calculate the yearly book value.
Year 1 Book value will be the original value
Year 2 Book value will be Book value (year 1) minus depriciation (Year 1)
Year 3 Book value will be Book value (year 2) minus depriciation (Year 2)
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could someone explain me how they got 2 years and four
month at the end? dont know where they got it from. thanks
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Economic Life of a Defender (Existing Asset) It is desired to determine how much longer a forklift truck should remain in service before it is replaced by the new truck (challenger) for which data were given in Example 9-4 and Table 9-2. The defender in this case is two years old, $7.500. It kept, its originally cost $19.500, and has a present realizable MV of $7,500 MVs and annual expenses are expected to be as...
Accounts Payable
Accumulated Depreciation-Building
Accumulated Depreciation-Leased Building
Accumulated Depreciation-Capital Leases
Accumulated Depreciation-Equipment
Accumulated Depreciation-Leased Equipment
Accumulated Depreciation-Leased Machinery
Accumulated Depreciation-Machinery
Advertising Expense
Amortization Expense
Airplanes
Buildings
Cash
Cost of Goods Sold
Deferred Gross Profit
Deposit Liability
Depreciation Expense
Equipment
Executory Costs
Executory Costs Payable
Gain on Disposal of Equipment
Gain on Disposal of Plant Assets
Gain on Lease
Insurance Expense
Interest Expense
Interest Payable
Interest Receivable
Interest Revenue
Inventory
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could someone explain me how they got 2 years and four
month at the end? dont know where they got it from. thanks
is considering investing in one of the following indiv Example 18./ Wollensky Ltd is conside projects: Time (years) Project A Projects Project 0 Initial capital expenditure Expected annual 50,000 17,000 50,000 2,000 60,000 21,000 Remember that capital expenditures expenditure on fored profitilloss) 2,000 16,000 12,000 7,000 2,000 (18,000) 10,000 6,000 8,000 2,000 10,000 6,000 1,000 (4.000) 15,000...
The target capital structure
for Acme is 60% debt and 40% equity. The risk-free rate is 2%. The
market risk premium is 5%. The beta of Acme against a relevant
stock index is 0.8. The pre-tax cost of debt for Acme is 4%. Assume
an effective corporation tax of 17%.
Question 1
(a) Based on the given financial statements, calculate the
following ratios for 2018. Explain the consequence if a calculated
ratio is significantly lower than its corresponding industry
average....
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The company has annual revenue of $2 billion and 12,000 employees.
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relied on more than five information systems, all of which are
outdated. Since these information systems are not fully integrated,
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