A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials, he has three labours and he paid k6000 as wages for the three labourers, he does not have a building of his own, and paid k200 as rental fees. The carpenter decided to get a loan from NATSAVE of k250,000 at the interest rate of 20%. He inputed k2000 in january and k1500 in february. using the information given above compute; i. Accounting Profit for the carpenter ii. Economic profit for the carpenter daenvete 0 20 tantrice

A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials, he has three labours and he paid k6000 as wages for the three labourers, he does not have a building of his own, and paid k200 as rental fees. The carpenter decided to get a loan from NATSAVE of k250,000 at the interest rate of 20%. He inputed k2000 in january and k1500 in february. using the information given above compute; i. Accounting Profit for the carpenter ii. Economic profit for the carpenter daenvete 0 20 tantrice

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Lush Gardens Co. bought a new truck for $52,000. It paid $5,720 of this amount as a down payment and financed the balance at 4.08% compounded semi-annually. If the company makes payments of $1,700 at the end of every month, how long will it take to settle the loan? a. How many deposits will the company have to make to settle the loan? Round up to the next whole number b. How long will it take to settle the loan? years months E Express the answer in years and months, rounded to the next payment period
A person is planning to purchase a car. A new car is costing rupees 3 lacs. The resale value of the car at the end of the year is 85% of the previous year. Maintenance and repair cost during the first year are rupees 10000 and they increase by 15 % every year. The minimum resale value of the car can be rupees 75000. (a) When should the car be replaced to minimize average annual cost? (b) If interest rate of 12% is assumed, calculate the average cost at the end of 10 years.
Franklin Camps, Incorporated leases the land on which it builds camp sites. Franklin is considering opening a new site on land that requires $2,450 of rental payment per month. The variable cost of providing service is expected to be $6 per camper. The following chart shows the number of campers Franklin expects for the first year of operation of the new site: January February March 150 260 210 February August April 210 Price May 330 June 510 Required Assuming that Franklin wants to earn $7 per camper, determine the price it should charge for a camp site in February and August. Note: Do not round intermediate calculations. July August September October November December Total 660 660 360 390 150 310 4,200
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Max's Kennels spent $220,000 to refurbish its current facility. The firm borrowed 60 percent of the refurbishment cost at 5.95 percent interest for six years. What is the amount of each monthly payment?
kong operates a boutique hotel in a resort area near Chenang, Langkawi. Depreciation on the hotel is 60,000 per year. kong employs a maintenance person at an annual salary of 41,000 and a cleaning person at an annual salary of 24,000. Real estate taxes are 10,000 per year. The rooms rent at an average price of 60 per person per night. Other costs are laundry and cleaning service at a cost of 10 per person per night and the cost of breakfast which is 5 per person per night. Required: (a) Indicate the number of rentals and the sales revenue kong needs to break even using the contribution margin technique. (b) If the current level of rentals is 4,000, by what percentage can rentals decrease before kong has to worry about having a net loss? (c) kong is considering upgrading the breakfast service to attract more business and increase prices. This will cost an additional 3 food costs per person per night. kongfeels she can increase the room rate to 68 per person per night. Indicate the…
(b) Abdullah is concerning about buying of a gift shop operating at AEON Shah Alam. Based on the shop financial statement, Abdullah estimated the revenue of the shop is RM275,000 per year. The shop cost of goods sold are RM65,000. The other expenses per year for the shops as follows: Expenses Wages and Salaries Utilities charges Repair and maintenance Printing and stationery Promotion Other expenses RM 137,500 9,000 10,000 3,000 5,500 2,200 Based on the information given, compute the selling price of the gift shop if the cash flow discounted at 10 percent using discounted cash flow method.
A certain company has the following maintenance cost for all of its machine. On the first 5 years, the company needs P100,000 per year and on the next 7 years he company needs P250,000 per year. How much will the company pay in total if they are going to pay all these costs today? Interest for the whole duration is 10% compounded monthly.
A firm is considering leasing or buying a mower. The mower costs $1000 and can be depreciated and falls into the MACRS 3 year class (33%; 45%; 15% and 7%). A maintenance contract will be purchased for $200 per year payable at the start of each year for 4 years. The firms tax rate is 30%. The firm expects to sell the mower for $96 at the end of the 3rd year. What is the net sale price when the mower is sold?
You purchased a new washer and dryer for $1,297.07 (including sales tax and delivery). Financing was used for the full purchase price and the payments are $141.43 per month for 11 months. What is the cost for the loan?