Ball and Bats‚ Inc.: Double Line method and the Straight Line Method On January 1‚ 2005 the company Balls and Bats‚ Inc. made a purchase of equipment. The cost of the equipment was one hundred thousand dollars and had life expectancy of four years. The following schedules are the double-declining balance method and the straight line method of depreciation. This schedule will assist Balls and Bats‚ Inc determine the best method to depreciate there new acquisition. Further‚ the schedules will determine
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Balls and Bats‚ Inc. purchased equipment on January 1‚ 2005‚ at a cost of $100‚000. The estimated useful life is 4 years with a salvage value of $10‚000. The purchase of long-lived assets are daily‚ quarterly and yearly occurrences for many corporations. The cost allocation of the asset is shown through the method of depreciation a company uses. The method a company chooses to incorporate should be one that most effectively matches expenses with the revenues produced. The method that most select
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Sullivan saw a bag at a trade show that she would sell to her customers for $85. What is the most she could pay for the bag and still retain the 45% markup of the selling price? P=selling price C=cost of product R=percentage markup P=C(1+r) 85=C(1+45%/100=1.45) C=85/1.45=58.62 Check back 58.62*45%=26.379=26.38 58.62+26.38=85 Answer: Most she could pay for the bag and still retain markup of 45% is: $58.62 6. Q=Jeff Jones earns $1‚200 per week. He is married and claims four (4) withholding
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------------------------------------------------- Workshop 5 – Capital Budgeting II 1. Basic Concepts Review a) In applying Net Present Value‚ what factors do we include‚ and what factors do we ignore? Use cash flows not accounting income Ignore * sunk costs * financing costs Include * opportunity costs * side effects * working capital * taxation * inflation 2. Practice Questions a) After spending $3 million on research‚ Better Mousetraps has developed a new trap. The project requires an
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Comprehensive Problem 1 c) Notes to the Financial Statements: 1. The company uses the straight-line depreciation method. The rental equipment is estimated to have a useful life of eight years. Thus‚ the monthly depreciation of the rental equipment is 240‚000/96‚ or $2‚500 per month. 2. The note payable to Rent-It is good for one year. $100‚000 and the accumulated interest are due on November 30‚ 2012. The account payable for office supplies is due in thirty days‚ or January 2‚ 2012. The account
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STRAIGHT LINE MODEL In many investigations‚ two or more variables are observed for each experimental unit in order to determine: 1. Whether the variables are related. 2. How strong the relationships appear to be. 3. Whether one variable of primary interest can be predicted from observations on the others. Regression analysis concerns the study of relationships between quantitative variables with the object of identifying‚ estimating‚ and validating the relationship. The estimated relationship
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Straight Line Equations and Inequalities A: Linear Equations - Straight lines Please remember that when you are drawing graphs you should always label your axes and that y is always shown on the vertical axis. A linear equation between two variables x and y can be represented by y = a + bx where “a” and “b” are any two constants. For example‚ suppose we wish to plot the straight line If x = -2‚ say‚ then y = 3 + 2(-2) = 3 - 4 = -1 If x= -2 -1 -1 1 0 3 1 5 2 7 As you can see‚ we have plotted the
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Jacobs Division 2003 Richard Soderberg‚ financial analyst for the Jacobs Division of MacFadden Chemical Company‚ was reviewing several complex issues relating to possible investment in a new product for the following year‚ 2004. The product was a specialty coating material‚ which qualified for investment according to company guidelines. Mr. Reynolds‚ however‚ the Jacobs Division manager‚ was fearful that it might be too risky. While regarding the project as an attractive opportunity‚ Mr. Soderberg
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Buildings‚ machinery‚ equipment‚ furniture‚ fixtures‚ computers‚ outdoor lighting‚ parking lots‚ cars‚ and trucks are examples of assets that will last for more than one year‚ but will not last indefinitely. Over time‚ these assets depreciate. Depreciation is defined as a non-cash expense that reduces the value of an asset as a result of physical or functional factors over time. Therefore‚ the costs of the fixed assets should be recorded as an expense over their useful lives‚ since they depreciate
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ALL CBSE STUFF Class XI Chapter 10 – Straight Lines Maths Exercise 10.1 Question 1: Draw a quadrilateral in the Cartesian plane‚ whose vertices are (–4‚ 5)‚ (0‚ 7)‚ (5‚ –5) and (–4‚ –2). Also‚ find its area. 14 Answer Let ABCD be the given quadrilateral with vertices A (–4‚ 5)‚ B (0‚ 7)‚ C (5‚ –5)‚ and D (– 4‚ –2). Then‚ by plotting A‚ B‚ C‚ and D on the Cartesian plane and joining AB‚ BC‚ CD‚ and DA‚ SU M IT © 20 the given quadrilateral can be drawn as To find the area of quadrilateral
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