FUNDAMENTAL ACCOUNTING PRINCIPLES
FUNDAMENTAL ACCOUNTING PRINCIPLES
24th Edition
ISBN: 9781260811704
Author: Wild
Publisher: MCG
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Chapter 26, Problem 6DQ
To determine

Introduction:

Average Investment:

The method used to determine the returns from the net income of the investment in capital budgeting referred as average rate of return. This average rate of return is represented by the average return during period and average investment. Average investment is simply the sum of overall investments made over a period of time which is usually a year.

To calculate:

The average amount invested in a machine using straight line method of depreciation.

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Question: 22 - Hader company has actual sales of $82,000 in April and $63,000 in May. It expects sales of $78,000 in June and $92,000 in July and in August. Assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following 2 months, what are the firm's expected cash receipts for June, July, and August?
Calculate the sales revenue to achieve a target profit of 375000
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Depreciation -MACRS; Author: Ronald Moy, Ph.D., CFA, CFP;https://www.youtube.com/watch?v=jsf7NCnkAmk;License: Standard Youtube License