mpt in Progress Swifty Corporation has old inventory on hand that cost $26250. Its scrap value is $35000. The inventory could be sold for $47500 manufactured further at an additional cost of $26250. What should Swifty do? O Sell the inventory for $35000 scrap value Manufacture further and sell it for $87500 O Dispose of the inventory to avoid any further decline in value O Hold the inventory at its $26250 cost

mpt in Progress Swifty Corporation has old inventory on hand that cost $26250. Its scrap value is $35000. The inventory could be sold for $47500 manufactured further at an additional cost of $26250. What should Swifty do? O Sell the inventory for $35000 scrap value Manufacture further and sell it for $87500 O Dispose of the inventory to avoid any further decline in value O Hold the inventory at its $26250 cost

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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Current Attempt in Progress Swifty Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine $420000 $210000 Price Accumulated Depreciation 63000 -0- 10 years Remaining useful life -0- 10 years Useful life -0- Annual operating costs $126000 $168000 If the old machine is replaced, it can be sold for $16800. Which of the following amounts is a sunk cost? O $420000 o $126000 O $147000 O $168000
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Silver Company has the opportunity to introduce a new product, Silver expects the product to sell for P60 and to have per unit variable costs of P35 and annual cash fixed costs of P4,000,000. Expected annual sales volume is 275,000 units. The equipment needed to bring out the new product costs P6,000,000, has a four-year life and no salvage value, and would be depreciated on a straight-line basis. Silver's cost of capital is 14% and its income tax rate is 40%. The present values of 1 at 14 percent for 4 periods are: End of: Yr. 1 - 0.877; Yr. 2 - 0.770; Yr. 3 - 0.675; Yr. 4 - 0.520. The present of annuity of 1 at 14 percent for 4 periods is 2.914. What is the payback period? 2.58 years 2.93 years 3.48 years 2.09 years
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! 1 Q A N Current Attempt in Progress Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price @ 2 Accumulated Depreciation Remaining useful life Useful life Annual operating costs W S O $26000 O $38000 O $(6200) O $(62000) Save for Later → X command If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is # 3 E с Old Machine New Machine $330000 $620000 D $ At 4 120000 C 10 years -0- $260000 R F do 50 % V -0- 10 years $196600 G Search or type URL -0- T G MacBook Pro ^ 6 Y B & 7 H ☆ U * 00 N 8 Attempts: 0 of 1 used Submit Answer J + 1 ( - O 9 K M * ) O 2 O command { [
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A business purchased a delivery truck 5 years ago at a cost of $45,000. It is now planning to replace that truck with a newer one, which would cost $60,000. The old truck has a trade-in value of approximately $12,500.(a1) How much of these truck costs represent sunk costs?
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