Martin Company purchases a machine at the beginning of the year at a cost of $66,000. The machine is depreciated using the double-declining-balance method. The machine's useful life is estimated to be 4 years with a $5500 salvage value. The machine's book value at the end of year 3 is:
A. $49,500.
B. $8250.
C. $33,000.
D. $7563.
E. $57,750.
Answer: B
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Standards are best measured when they are
A. broad. B. quantifiable. C. narrow. D. efficient. E. ethical.
_____, which are used to accumulate data about expenditures involved in producing specific products, make excellent use of IT to compile pricing data.
A. Enterprise resource planning systems B. Cost-accounting systems C. Human resources systems D. Supply chain management systems
Reddick's Specialty Electronics makes weatherproof surveillance systems for parking lots. Demand estimates for the next four quarters are 25, 9, 13, and 17 units
The firm is preparing an aggregate plan that uses inventory, regular time and overtime and back orders. Subcontracting is not allowed. Regular time capacity is 15 units for quarters 1 and 2, 18 units for quarters 3 and 4. Overtime capacity is 3 units per quarter. Regular time cost is $2000 per unit, while overtime cost is $3000 per unit. Back order cost is $300 per unit per quarter; inventory holding cost is $100 per unit per quarter. Beginning inventory is zero. The data inputs for this problem, and the optimal solution, generated by microcomputer software, appear below. Answer the following questions based on the scenario and the solution. a. How many total units will be produced in quarter 1 for delivery in quarter 1? b. How many units in total will be used to fill back orders over the four quarters? c. What is the cost to produce one unit in Quarter 4 using overtime to deliver in quarter 1 (filling a back order)? d. At the end of quarter 3, what is the ending inventory of finished systems? e. What is the total cost of the solution? f. What is the average cost per unit? Reddick's Specialty Electronics Period 1 Period 2 Period 3 Period 4 Supply RT 1 2,000 2,100 2,200 2,300 15 OT 1 3,000 3,100 3,200 3,300 3 RT 2 2,300 2,000 2,100 2,200 15 OT 2 3,300 3,000 3,100 3,200 3 RT 3 2,600 2,300 2,000 2,100 18 OT 3 3,600 3,300 3,000 3,100 3 RT 4 2,900 2,600 2,300 2,000 18 OT 4 3,900 3,600 3,300 3,000 3 Demand 25 9 13 17 Reddick's Specialty Electronics Solution Optimal cost = $132,200 Period 1 Period 2 Period 3 Period 4 Dummy RT 1 15. OT 1 3. RT 2 6. 9. OT 2 3. RT 3 4. 13. 1. OT 3 3. RT 4 17. 1. OT 4 3.
Which of the following statements is CORRECT?
A. If a security analyst saw that a firm's days' sales outstanding (DSO) was higher than the industry average and trending still higher, this would be interpreted as a sign of strength. B. A high average DSO indicates that none of the firm's customers are paying on time. In addition, it makes no sense to evaluate the firm's DSO with the firm's credit terms. C. There is no relationship between the days' sales outstanding (DSO) and the average collection period (ACP). These ratios measure entirely different things. D. A reduction in accounts receivable would have no effect on the current ratio, but it would lead to an increase in the quick ratio. E. If a firm increases its sales while holding its accounts receivable constant, then its days' sales outstanding will decline, other things held constant.