The Hub Store at a university in eastern Canada is considering purchasing a self-serve checkout machine similar to those used in many grocery stores and other retail outlets. Currently the university pays part-time wages to students totalling $58,000 per year. A self-serve checkout machine would reduce part-time student wages by $38,000 per year. The machine would cost $300,000 and has a 10-year useful life. Total costs of oper
Q: 1. Prepare a bond interest expense and premium amortization schedule. 2. Assume the company retired…
A: Bonds are fixed-income generating instruments which the government or certain classified companies…
Q: The following transactions occurred during March 20211
A: Acounting equation represents that the assets are equal to the liabilities and stockholders' equity…
Q: Problem 9-2 The trial balances before the adjustment for the home office and the branch of the Spade…
A: A company having several branches follows a procedure of maintaining a unique account for each of…
Q: 10/15 Sold 1,000 shares @ P130 net of transaction cost CR – 21 130,000 12/04/15 Sold 1,000 shares @…
A: Dividend Income - Dividends are sums of money given to you by a corporation in exchange for your…
Q: P acquired 70% of S in 20X8. The statements of profit or loss of the two companies for the year…
A: Consolidated Financial Statements: Consolidation statements are the financial statements prepared by…
Q: Jitrah Sdn Bhd is a Malaysia tax resident company. Jitrah is registered under sales tax. Jitrah…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: Statement of cash flows G Corp had the following activities in 2008: Sale of land $230,000…
A: Solution We are provided with the following information Investing activities consists of sale of…
Q: Jasper Junction Corporation (JJC) is an accrual basis, calendar-year entity that was created by…
A: For the purposes of federal taxation, S corporations are businesses that choose to pass through to…
Q: Required: Assume that the average quality, measured by the percentage of late deliveries, and prices…
A: 1 Effective Cost per Carton Bacon 214.4 Hessel 211.2 2 Indefferent point 27.50%
Q: Use the 2016 marginal tax rates to compute the income tax owed by the following person. Single male,…
A: Taxable Income: Taxable income is the baseline income used to determine taxes. The revenue may be…
Q: How much is the Issuance Price per Share for the Common Stock Issued for the Year? (Round to the…
A: Issue of common stock is one of the important source of finance being used by business. Shares can…
Q: 13. On June 1, Cline Co. paid $800,000 cash for all of the issued and outstanding common stock of…
A: An intangible asset associated to the acquisition of a company by another is goodwill. When the…
Q: Complete the cash flow statement using the indirect method on the template provided.
A: `Solution Calculated the Cash flow statement of ICY Company under the Indirect Method…
Q: b) The following information has been taken from the financial accounts of Lucy's Ltd of the end of…
A: Answer:- Ledger account meaning:- The bookkeeping entries for transactions that appear on the…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: The term variance defines the difference of actual costs and standard costs of the production. The…
Q: M & G TV and Appliance Store is a small company that has hired you to perform some management…
A: Estimated total costs will be the sum total of total expected variable costs and total fixed costs.…
Q: A partial listing of costs incurred at Archut Corporation during September appears below: Direct…
A: Manufacturing overhead is a type of operating expense that is unrelated to a facility's production.…
Q: 1. Mr. Park is a resident Filipino citizen working as a professional artist in a prestigious TV…
A: Tax due, when referring to an income tax return, is any federal income taxes, alternative minimum…
Q: Software and hardware for optimizing the cell design of robotic picking lines have an installed cost…
A: DEPRECIATION EXPENSE Depreciation means gradual decrease in the value of an asset due to normal…
Q: Single plantwide factory overhead rate Spotted Cow Dairy Company manufactures three products-whole…
A: 1. Single plant-wide overhead rate: Direct labor hour overhead rate=$403,2002,520=$160 per hour…
Q: Debt ratio is ____________%. n.Debt to Equity ratio is ___________%. o.Net profit margin is…
A: Lets understand the basics. Debt ratio shows how much of the total assets are generated using the…
Q: [The following information applies to the questions displayed below.] In the current year, Randa…
A: Income statement is prepared by the business organizations so as to know how much amount of gross…
Q: a. Compute return on assets at year-end for 2007, 2009, 2012, 2014, and 2016. (Use $28,000 in the…
A: Given in the question: Asset Balance as on January 2007 Total Assets $5,56,000…
Q: Question: A company has a gross income of $2,500,000 and has $500,000 of business expenses. The…
A: Each and every company has to pay the taxes on income earnings but there are some deductions…
Q: The following information pertains to Best Food (BF) Company’s intangible assets: a. On January 1,…
A: Intangible assets - are assets without any physical existence, which are a resource that is…
Q: Required: Compute the cost of ending merchandise inventory for the combined financial statements.
A: Inventory valuation is an accounting practice that is followed by companies to find out the value of…
Q: Required: Prepare Shuswap's statement of financial position as at 31 December 2022, complying as far…
A: Financial statements are the set of records of the financial transactions and position of a business…
Q: On the first day of the fiscal year, a company issues a $784,000, 6%, 10-year bond that pays…
A: A Issue price $823,800 B Face value $784,000 C=A-B Premium on bonds payable $39,800 D No.…
Q: Cash collected from clients Cash disbursements; Salaries paid to employees for services rendered…
A: As per the information given in the question, utilities cost incurred in year 1 is $37000 and actual…
Q: Novak Furniture Company started construction of a combination office and warehouse building for its…
A: Lets understand the basics. Avoidable interest is the interest cost incurred on weighted average…
Q: Construct a balance sheet for Sophie's Sofas given the following data, including shareholders'…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: A firm with positive cash flow from financing Is using their excess cash to pay down their debt,…
A: Lets understand the basics. Cashflow statement is divided into three major parts. (1) Cashflow from…
Q: John Richardson is the manufacturing production supervisor for Torsion Tool Works (TTW), a company…
A: A flexible budget seems to be one which can be adjusted if the parameters used to construct it vary…
Q: The following transactions were completed by the company: The owner invested $15,000 cash in the…
A: Accounting equation represents that the assets are equal to the liabilities and stockholders'…
Q: following independent situations, determine Winston's filing status for 2022. Winston is not marrie…
A: Taxation - Taxation is the practice of governments imposing forced taxes on people or organizations.…
Q: The profit margin ratio is calculated by dividing: Select one: profit (loss) by sales revenue.…
A: Ratio analysis is quantitive method of getting inside review of an organisation. This helps us to…
Q: Juliet opened an Office Cleaning Service company on January 1, 2021. During the year she had the…
A: Liabilities are financial obligations that a business have to pay to their creditors it means to a…
Q: Introduction to Financial Accounting Question 8. current financial year end after all entries have…
A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: Cash collected from clients Cash disbursements; Salaries paid to employees for services rendered…
A: Under accrual accounting, revenues that have been generated but not yet received and expenses that…
Q: Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as…
A: Flexible budget is that budget which changes along with change in activity level. Difference between…
Q: The cost of goods sold computations for Sheridan Company and Windsor Company are shown below.…
A: Inventory turnover ratio also commonly referred to as stock turnover ratio indicates the extent to…
Q: n 2022, Mr Kind, a resident of Alberta and has a taxable income of $122,500. Calculate his 2022…
A: Tax:- A tax is the compulsory payment which is imposed by the government on income and capital gain…
Q: Fitness Express sells three different types of elliptical machines. They have manufactured 50 of…
A: Break even sales is the dollar amount of revenue at which a business earns a profit of zero. In…
Q: Evaluating data reliability is a critical part of the audit process. Explain the differences among…
A: Reliability of data in an audit environment refers to the extent to which the data are usable for…
Q: LO.8 During the year, Tamara had capital transactions resulting in gains (losses) as follows: Sold…
A: A loss caused by the decrease in value of a capital asset, such as an investment or a piece of real…
Q: During July 2022, the following transactions and events occurred for Alpha Juliet Charlie Ltd who…
A: Periodic inventory system is an inventory system where inventory updates are made on periodic basis…
Q: A company values its inventory of engines using the FIFO (first in,first out) method. At 1 May 20x5…
A: The closing inventory is the amount of inventory which is left in the stock at the end of the…
Q: Newhard Company assigns overhead cost to jobs on the basis of 111% of direct labor cost. The job…
A: The manufacturing costs of jobs comprises direct materials, direct labor and manufacturing overhead…
Q: Douglass Minerals mines ore and then processes it into other products. At the end of the mining…
A: Joint Cost is the cost which incurred in before the split off point and there are methods for…
Q: Sales Cost of goods sold. Accounts receivable 2021 $ 424,322 214,661 20,580 Numerator: 2020 $…
A: Working : (1) Trend percent for net sales = Current year net sales / Base year net sales (2) Trend…
The Hub Store at a university in eastern Canada is considering purchasing a self-serve checkout machine similar to those used in many grocery stores and other retail outlets. Currently the university pays part-time wages to students totalling $58,000 per year. A self-serve checkout machine would reduce part-time student wages by $38,000 per year. The machine would cost $300,000 and has a 10-year useful life. Total costs of operating the checkout machine would be $5,600 per year, including maintenance. Major maintenance would be needed on the machine in five years at a total cost of $10,600. The salvage value of the checkout machine in 10 years would be $43,000.
The CCA rate is 25%. Management requires a 10% after-tax return on all equipment purchases. The company’s tax rate is 30%.
Required:
1. Determine the before-tax net annual cost savings that the new checkout machine will provide.
2-a. Using the data from (1) above and other data from the exercise, compute the checkout machine’s
2-b. Would you recommend that the machine be purchased?
multiple choice
-
Yes
-
No
Step by step
Solved in 2 steps with 1 images
- At Stardust Gems, a faux gem and jewelry company, the setting department is a bottleneck. The company is considering hiring an extra worker, whose salary will be $67,000 per year, to ease the problem. Using the extra worker, the company will be able to produce and sell 9,000 more units per year. The selling price per unit is $20. The cost per unit currently is $15.85 as shown: What is the annual financial impact of hiring the extra worker for the bottleneck process?The Hub Store at a university in eastern Canada is considering purchasing a self-serve checkout machine similar to those used in many grocery stores and other retail outlets. Currently the university pays part-time wages to students totalling $58,000 per year. A self-serve checkout machine would reduce part-time student wages by $38,000 per year. The machine would cost $300,000 and has a 10-year useful life. Total costs of operating the checkout machine would be $5,600 per year, including maintenance. Major maintenance would be needed on the machine in five years at a total cost of $10,600. The salvage value of the checkout machine in 10 years would be $43,000. The CCA rate is 25%. Management requires a 10% after-tax return on all equipment purchases. The company's tax rate is 30%. Required: 1. Determine the before-tax net annual cost savings that the new checkout machine will provide. Net annual cost savings Net present value $ *********** 2-a. Using the data from (1) above and other…The Hub Store at a university in eastern Canada is considering purchasing a self-serve checkout machine similar to those used in many grocery stores and other retail outlets. Currently the university pays part-time wages to students totalling $63,500 per year. A self-serve checkout machine would reduce part-time student wages by $43,500 per year. The machine would cost $410,000 and has a 10-year useful life. Total costs of operating the checkout machine would be $6,700 per year, including maintenance. Major maintenance would be needed on the machine in five years at a total cost of $11,700. The salvage value of the checkout machine in 10 years would be $48,500. The CCA rate is 25%. Management requires a 9% after-tax return on all equipment purchases. The company’s tax rate is 30%. Using the data from (1) above and other data from the exercise, compute the checkout machine’s net present value. (Hint: Use Microsoft Excel to calculate the discount factor(s).)
- ces The Hub Store at a university in eastern Canada is considering purchasing a self-serve checkout machine similar to those used in many grocery stores and other retail outlets. Currently the university pays part-time wages to students totalling $64,500 per year. A self-serve checkout machine would reduce part-time student wages by $44,500 per year. The machine would cost $430,000 and has a 10-year useful life. Total costs of operating the checkout machine would be $6,900 per year, including maintenance. Major maintenance would be needed on the machine in five years at a total cost of $11,900. The salvage value of the checkout machine in 10 years would be $49,500. The CCA rate is 25%. Management requires a 9% after-tax return on all equipment purchases. The company's tax rate is 30%. Required: 1. Determine the before-tax net annual cost savings that the new checkout machine will provide. Net annual cost savings 2-a. Using the data from (1) above and other data from the exercise,…A supermarket is planning on piloting a self- checkout system in one of its stores. It estimates that this requires an investment of about $500,000 to modify existing checkout lanes into self-checkout lanes. It also estimates that it will save $200,000 yearly in employee salaries by automating the checkout process. If the supermarket's MARR is at 10% per year compounded annually, determine the payback period (in years) for this pilot.You work for a sprinkler manufacturing company. You want to propose the manufacturing of a new type of sprinkler head. The manufacuring process has a fixed annual cost of $750,000. If you want to charge $275 per sprinkler head, and each sprinkler head costs $205 to manufacture, how many sprinkler heads will you need to sell in order to break even? 9,882 sprinkler heads 10,715 sprinkler heads 7,515 sprinkler heads 15,312 sprinkler heads
- Sage Laundromat is trying to enhance the services it provides to customers, mostly college students. It is looking into the purchase of new highefficiency washing machines that will allow for the laundry’s status to be checked via smartphone. Sage estimates the cost of the new equipment at $159,000. The equipment has a useful life of 9 years. Sage expects cash fixed costs of $80,000 per year to operate the new machines, as well as cash variable costs in the amount of 5% of revenues. Sage evaluates investments using a cost of capital of 10%. Q. Calculate the payback period and the discounted payback period for this investment, assuming Sage expects to generate $140,000 in incremental revenues every year from the new machines.Scrooge McDuck Safe Limited is considering buying the hinges it uses in the manufacture of vaults from an outside vendor. Currently, Scrooge McDuck Safe Limited makes the hinges in its own manufacturing facility. Scrooge McDuck Safe Limited can buy the hinges for $1.50 each. The company uses 900,000 hinges each year. Fixed cost for Scrooge McDuck Safe Limited would not change if the company stopped making the hinges. Information about Scrooge McDuck Safe Limited's cost to manufacture the 900,000 casters follows: Per Unit $.50 .10 Total Direct material $450,000 90,000 360,000 225.000 $1,125,000 Direct labor Variable overhead Fixed overhead Total .40 25 $1.25 Required: A. Prepare a relevant cost schedule that indicates whether Scrooge McDuck Safe Limited should buy the hinges or continue to make them. B. If Scrooge purchased the hinges, management has approached you that a dial producer wishes to rent the vacant space for $150,000 to produce their dials. Does this change your decision??…An automated car wash called Jet Express outside a large Texas city on the beltway is deciding whether to build and install one dedicated vehicle wash line or have two parallel wash lines. There are no other car washes at this intersection and there will be none because all the land is developed. The second line allows for some economies of scale in total cost. The monthly fixed cost of one wash line is $13,500 per month or $162,000 per year. This includes the mortgage payment, taxes on the building, and wash equipment. The variable cost for this single line is $15 per vehicle. The fixed cost for two wash lines is $26,000 per month or $312,000 per year, and the variable cost to operate two lines is $12 per vehicle because some wash crews can work both lines. The price of the average interior and exterior car wash is $27. Use the Excel template Break-Even in MindTap to answer the following questions: What is the break-even quantity for one and two automated wash line? Round your…
- Wendell's Donut Shoppe is investigating the purchase of a new $31,300 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $5.300 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 1.300 dozen more donuts each year. The company realizes a contribution margin of $3.00 per dozen donuts sold. The new machine would have a six-year useful life. Click here to view Exhibit 128-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using tables. Requlred: 1. What would be the total annual cash inflows associated with the new machine for capital budgeting purposes? 2 What discount factor should be used to compute the new machine's internal rate of return? (Round your answer to 3 decimal places.) 3. What is the new machine's internal rate of return? (Round your final answer to the nearest whole percentage.) 4. In addition to the data…Wendell’s Donut Shoppe is investigating the purchase of a new $34,600 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $6,200 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 2,200 dozen more donuts each year. The company realizes a contribution margin of $2.00 per dozen donuts sold. The new machine would have a six-year useful life. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. What would be the total annual cash inflows associated with the new machine for capital budgeting purposes? 2. What discount factor should be used to compute the new machine’s internal rate of return? (Round your answers to 3 decimal places.) 3. What is the new machine’s internal rate of return? (Round your final answer to the nearest whole percentage.) 4. In addition to the…Wendell’s Donut Shoppe is investigating the purchase of a new $31,300 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $5,300 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 1,300 dozen more donuts each year. The company realizes a contribution margin of $3.00 per dozen donuts sold. The new machine would have a six-year useful life. In addition to the data given previously, assume that the machine will have a $12,820 salvage value at the end of six years. Under these conditions, what is the internal rate of return? (Hint: You may find it helpful to use the net present value approach; find the discount rate that will cause the net present value to be closest to zero.) (Round your final answer to nearest whole percentage.)