Can you please solve this financial accounting issue without use Ai? A company's income statement for the year ended 31 December20X4 showed a net profit of $75,000. It was later discovered that$20,000 paid for the purchase of equipment had been debited to therepairs and maintenance account. The company's policy is todepreciate equipment at 20% per year on the straight-line basis,with a full year's charge in the year of acquisition.Required:What would the net profit be after adjusting for this error?

Step 1: Define Adjusting Net ProfitAdjusting net profit involves correcting any accounting errors…

Answered: A company's income statement for the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...

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Calculate the asset turnover ratio?
The following data are accumulated by Lingle Company in evaluating the purchase of $180,000 of equipment having a 4-year useful life: Net Income Net Cash Flow Year 1 $51,000 $96,000 Year 2 33,000 78,000 Year 3 15,000 60,000 Year 4 3,000 48,000 Assuming that the desired rate of return is 15%, determine the net present value for the proposal. Use the table of the present value of $1 appearing in Exhibit 2 of this chapter.
A firm has annual revenues of $500K, cost of revenue of $200K, and general costs of $100K. During the current year (year 0), an old, fully depreciated piece of machinery broke and needed to be replaced immediately at a cost of $500K. The new one will be depreciated linearly over the next 10 years. To finance the purchase, a loan for the full purchase amount was also taken out immediately at 5% annual interest. The corporate tax rate is 30%. You are given the following head start: Year 0 Year 1 Revenue 500,000 500,000 COGS 200,000 200,000 = Gross profit 300,000 300,000 - SG&A 100,000 100,000 - Depr & Amort = Operating profit - Tax @ 30% = Net Op. Profit After Tax + Depr & Amort - Capex = FCF 1. Compute FCF for year 0 and year 1. 2. The market cap of the firm is $1.5m. Before the loan, there was no debt and cash is $50K. What is the year 0 EV/Revenue multiple?
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A firm is considering an investment in new equipment that has the following information. Purchase Cost: $123,829 and the equipment will have no salvage value at the end of its five year life. Annual accounting profit is $30,899 Calculate the Accounting Rate of Return, ie the ARR. Express your answer as a percentage with two decimal places
Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.
For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.
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what is Orion's total asset turnover ratio? accounting question solution
Provide the Correct answer.. I need this answer with Correct option
Aneko Company reports the following: net sales of $17,500 for Year 2 and $16,625 for Year 1; end-of-year total assets of $18,000 for Year 2 and $16,500 for Year 1. 1. Compute its total asset turnover for Year 2. 2. Aneko's competitor has a turnover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its total asset turnover for Year 2. Choose Numerator: 1 1 1 Total asset turnover Choose Denominator: = = = Total asset turnover Total asset turnover times
Some interest cost of Metlock Inc. is capitalized for the year ended May 31, 2026. Compute the amount of each of the items that must be disclosed in Metlock's financial statements. Total actual interest cost $ Total interest capitalized $ Total interest expensed $

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