Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors. After one year, he submitted the following data to his accountant. • He stopped renting out his cottage for P35,000 a year and used it as his factory. • The market value of the cottage increased from P700,000 to P710,000. • He spent P50,000 on materials, phone, utilities, etc. • He leased machines for P100,000 a year. • He paid P150,000 in wages. • He used P100,000 from his savings account, which pays five 5% interest a year. • He borrowed P400,000 at 10% a year from the bank. • He sold P1,600,000 worth of monitors. • Normal profit is P250,000 a year. Compute for the following: * Lee’s explicit costs * Lee’s implicit cost * Lee’s economic profit
Q: A man is considering investing P500, 000 to ope n a semi-automatic auto-washing business in a city…
A: Here,
Q: Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing…
A: Depreciated cost means the depreciation to be charged to profit and loss account per year.
Q: 3
A: Introduction:- The Capital Cost Allowance (CCA) is a yearly deduction available under the Income Tax…
Q: Maureen has decided to produce and sell cricket bats in her spare time. She has a shaded area that…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Maria is a wedding planner. She purchases a laserjet printer for invitations, save-the-date…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Lou Lewis, the president of Lewisville Company has asked you to give him an analysis of the best use…
A: Net Present Value - An investment proposal's net present value can be calculated by adding up all of…
Q: Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors.…
A: Explicit costs are those that are plainly declared on the balance sheet of the company, whereas…
Q: One division of your company restores old antique vehicles. For example, the company just bought an…
A: The question is related to Capital Budgeting. The details regarding the same is given.
Q: Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing…
A: Present Value = Annuity * [ 1/( 1 + r ) + 1/( 1 + r )2 + ..... + 1/( 1 + r )n ] r = discount rate…
Q: Maureen has decided to produce and sell cricket bats in her spare time. She has a shaded area that…
A: Variable costs are costs that change in proportion to production output volume. When there is an…
Q: A professional photographer who specializes in wedding-related activities paid $45,500 for equipment…
A: Cost of equipment = $45,500 Salvage at the end of 5 years = $2000 Annual Savings = Let X 1 Day…
Q: Jenny Walters, who owns a real estate agency,bought an old house to use as her business office.…
A: Computation:
Q: After finishing an MS Structural Engineering, Alvin has set up a structural engineering consultation…
A: The method of calculating the interest amount on a specific principal amount of money at a given…
Q: Maureen has decided to produce and sell cricket bats in her spare time. She has a shaded area that…
A: 5.1.4 Production Costs is the total cost which is incurred by a business to produce a specific…
Q: Jerry was working as a veternarian, and he earned an annual income of $135,000. He had savings of…
A: Accounting Profit calculated by subtracting from Revenue for a period, the expenses incurred for…
Q: Harvey quit his job where he earned $45,000 a year. He figures his entrepreneurial talent or…
A: Given that Firm sold 11000 units of software at $75 each unit since: Total Revenue= Quantity×Per…
Q: A professional photographer who specializes in wedding-related activities paid $53,000 for equipment…
A: Given information: Cost of equipment : $53,000 Salvage value : $2000 Cost of each event : $65…
Q: A man purchased a house for P425,000. In the first month that he owned the house, he spent P75,000…
A: Following is the timeline of given case Month 0 - Purchased the house Month 1 - Spent on repairing…
Q: Maureen has decided to produce and sell cricket bats in her spare time. She has a shaded area that…
A: Given : Maureen has decided to produce and sell cricket bats in her spare time . A Shaded area used…
Q: Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors.…
A: Implicit Cost: In economics, an implicit cost, also called an imputed cost and payment is not…
Q: A man formerly employed as chief mechanic of an automobile repair shop has saved P1,000,000.00 which…
A: Introduction:- A man who worked as the primary mechanic at an auto repair shop accumulated…
Q: Flyingbird Learning Ltd. is a company located in Virginia. The company develops online training…
A: In the comparative analysis of differentiating between old and new options usually relevant costing…
Q: A professional photographer who specializes in wedding-related activities paid $47,500 for equipment…
A: Given, Equipment = $47500 Salvage value after 5 years= $2000 Cost associates each event = $65…
Q: To purchase $11,500 worth of lab equipment for his business, Deon made a down payment of $1500 and…
A: The loan is the sum of money borrowed by the borrower from the lender, where the borrower agrees to…
Q: Maureen has decided to produce and sell cricket bats in her spare time. She has a shaded area that…
A: Opportunity cost is the cost of the next best alternative you could have done had you not made your…
Q: To purchase $11,300 worth of lab equipment for her business, Kala made a down payment of $1700 and…
A: The loan is a value that is borrowed from external sources like banks and this amount is repaid…
Q: Which of the following sets of Excel entries will correctly solve this problem: Jim paid $138,000…
A: Future value is the value of present cashflow at future date compounded at the specified rate.
Q: Jerry invested $10,000 in two mutual funds. Fund A earned 6% profit during the first year, and Fund…
A: The net income is the net profit of the company earned during the period. The net income includes…
Q: A man formerly employed as a chief mechanic of an automobile repair shop has saved P1,000,000 which…
A: Given,N = 5 years I = 20%Rental P30,000.00 a monthMiscellaneous P25,000.00 a monthSales tax 3% of…
Q: Ltd bought a laptop computer for its business that cost £2,000 and it has a net book value of £1,200…
A: trent ltd bought laptop For its business 2,000 net book value after one year (Given) 1200 Actual…
Q: Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing…
A: given data interest rate = 5% time period = 5 years amount invested in bank account = $10000…
Q: Valley Pizza’s owner bought his current pizza oven two years ago for $9,000, and it has one more…
A: Decision analysis: It can be defined as a process that is used by the decision-maker in selecting…
Q: John decided to leave his job and open a bookshop in the city center. He was working as an engineer…
A: Implicit costs are also called opportunity costs as it implies the other alternatives which were…
Q: A few years ago, Nuts, Bolts and Brackets, Inc purchased a small warehouse. The firm paid $2.200,000…
A: Capital expenditures refer to the amount of money spent for acquiring fixed assets or properties…
Q: Anita Tahani, who owns a travel agency, bought an old house to use as her business office. She found…
A: Anita Tahani total expenses saving for five years if she does insulation of her ceiling.…
Q: A man purchased a house for P425,000. In the first month that he owned the house, he spent P75,000…
A: Selling value if sold immediately = 545,000 Value of house if not sold immediately = Present value…
Q: Maureen has decided to produce and sell cricket bats in her spare time. She has a shaded area…
A: Hey, since there are multiple sub-parts questions posted, we will answer the first three sub-parts…
Q: Angus and his sister Oona operate a small charter flight service that takes tourists on sightseeing…
A: UCC= Undepreciated Capital Cost is the balance of cost which is left for further depreciation.
Q: Maria purchased a new farm machine she will use for her second crop. She paid P30,000 for it and…
A: Depreciation is the allocation of cost of asset over the useful life of the asset. It can be charged…
Q: A well-informed photographer with her hand is a contractor who has contracts that include mound…
A:
Q: Maureen has decided to produce and sell cricket bats in her spare time. She has a shaded area that…
A: Product Costs Cost involved in manufacturing product.It includes direct material ,direct…
Q: oe quits his computer programming job, where he was earning a salary of $60,000 per year, to start…
A: Accounting Cost: It is the recorded cost of any financial activity. It is recorded in the ledger of…
Q: Harvey quit his job at State University, where he earned $62,000 a year. He figures his…
A: Implicit cost is the cost that has been incurred but not yet reported as separate expense.
Q: Mr. Don is the director of A-Design Inc., a federally incorporated company in Canada, specializing…
A: Bank deposits earn interest and it could be either simple interest or compound interest. In compound…
Q: Josaline, the owner of a construction company, is planning to purchase specialized equipment to…
A: This question is based on Net Present Cost Meaning of Net Present Cost: The total net present cost…
Q: A professional photographer who specializes in wedding-related activities paid $51,000 for equipment…
A: Given Information : Equipment - $51,000 Salvage value - $2,000 after 5 years Costs associated with…
Step by step
Solved in 2 steps
- Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors. After one year, he submitted the following data to his accountant. • He stopped renting out his cottage for P35,000 a year and used it as his factory. • The market value of the cottage increased from P700,000 to P710,000. • He spent P50,000 on materials, phone, utilities, etc. • He leased machines for P100,000 a year. • He paid P150,000 in wages. • He used P100,000 from his savings account, which pays five 5% interest a year. • He borrowed P400,000 at 10% a year from the bank. • He sold P1,600,000 worth of monitors. • Normal profit is P250,000 a year. Compute for the following: * Lee’s explicit costsLee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors. After one year, he submitted the following data to his accountant. • He stopped renting out his cottage for P35,000 a year and used it as his factory. • The market value of the cottage increased from P700,000 to P710,000. • He spent P50,000 on materials, phone, utilities, etc. • He leased machines for P100,000 a year. • He paid P150,000 in wages. • He used P100,000 from his savings account, which pays five 5% interest a year. • He borrowed P400,000 at 10% a year from the bank. • He sold P1,600,000 worth of monitors. Normal profit is P250,000 a year. Compute for the following: • Lee's explicit costs • Lee's implicit costs.ru Lee's economic profit1. PROBLEM SOLVING. Solve for what is asked far. Use the space provided for your answer and complete solution. 1. Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors. After one year, he submitted the following data to his accountant. • He stopped renting out his cottage for P35,000 a year and used it as his factory. • The market value of the cottage increased from P700,000 to P710,000. • He spent P50,000 on materials, phone, utilities, etc. • He leased machines for P100,000 a year. • He paid P150,000 in wages. • He used P100,000 from his savings account, which pays five 5% interest a year. • He borrowed P400,000 at 10% a year from the bank. • He sold P1,600,000 worth of monitors. Normal profit is P250,000 a year. Compute for the following: • Lee's explicit costs • Lee's implicit costs Lee's economic profit
- Your cousin has created a business specialised in 3-D printing of metal spare parts for repair shops. For the purchase of one machine, she is considering two different models (project A and B). You are to assist her in making the best choice. Assume an investment horizon of 6 years and a required rate of return of 10%. Assume no corporate or business tax on purchase, income or resale. No computation is required for the depreciation of the machine. After talking to technical professionals and the marketing manager, you have gathered the following information: (*) Operating cash flow margin % is equal to operating cash flow divided by sales. Operating cash flows are equal to sales minus all the recurring cash cost associated to production and sales. Operating cash flow margin % is constant over the period. Please show your workings carefully. a) Compute the Net Present Value of both project A and B b) Compute the Internal Rate of Return of both projects. Explain your result c) Assume…Your cousin has created a business specialised in 3-D printing of metal spare parts for repair shops. For the purchase of one machine, she is considering two different models (project A and B). You are to assist her in making the best choice. Assume an investment horizon of 6 years and a required rate of return of 10%. Assume no corporate or business tax on purchase, income or resale. No computation is required for the depreciation of the machine. After talking to technical professionals and the marketing manager, you have gathered the following information: (*) Operating cash flow margin % is equal to operating cash flow divided by sales. Operating cash flows are equal to sales minus all the recurring cash cost associated to production and sales. Operating cash flow margin % is constant over the period. a) Determine the initial cash outlay for both project A and B. b) Compute operating cash flow and cash flow from assets for both projects over the six (6) years c) Compute the Net…Your cousin has created a business specialised in 3-D printing of metal spare parts for repair shops. For the purchase of one machine, she is considering two different models (project A and B). You are to assist her in making the best choice. Assume an investment horizon of 6 years and a required rate of return of 10%. Assume no corporate or business tax on purchase, income or resale. No computation is required for the depreciation of the machine. After talking to technical professionals and the marketing manager, you have gathered the following information: (*) Operating cash flow margin % is equal to operating cash flow divided by sales. Operating cash flows are equal to sales minus all the recurring cash cost associated to production and sales. Operating cash flow margin % is constant over the period. a) Determine the initial cash outlay for both project A and B. b) Compute operating cash flow and cash flow from assets for both projects over the six (6) years c) Compute the Net…
- PROBLEM SOLVING. Solve for what is asked far. Use the space provided for your answer and complete solution. 1. Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors. After one year, he submitted the following data to his accountant. • He stopped renting out his cottage for P35,000 a year and used it as his factory. • The market value of the cottage increased from P700,000 to P710,000. He spent P50,000 on materials, phone, utilities, etc. • He leased machines for P100,000 a year. • He paid P150,000 in wages. • He used P100,000 from his savings account, which pays five 5% interest a year. • He borrowed P400,000 at 10% a year from the bank. • He sold P1,600,000 worth of monitars. • Normal profit is P250,000 a year. Compute for the following: • Lee's explicit costs • Lee's implicit costs • Lee's economic profitWhich of the following sets of Excel entries will correctly solve this problem: Jim paid $138,000 for an old house to renovate. He spent an average of $3,216 per quarter over the next two years as he readied the renovated house for sale. He wants to set the price of the house high enough so that he will earn an annual rate of return of 12% for his investment. Given that information, what price should Jim set on the house?Clearer Designs has a printing press sitting idly in its back room. The press has cannot be sold to another printer because the machine utilizes old technology. The firm could get $250 for the press as scrap metal. The press is six years old and originally cost $148,000. The current book value is $2,570. The president of the firm is considering a new project and feels he can use this press for that project. What value, if any, should be assigned to the press as an initial cost of the new project? a) $0 b) $250 c) $2,245 d) $2,570
- 1. PROBLEM SOLVING. Solve for what is asked far. Use the space provided for your answer and camplete solution. 1. Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors. After one year, he submitted the following data to his accountant. • He stopped renting out his cottage for P35,000 a year and used it as his factory. • The market value of the cottage increased from P700,000 to P710,000. • He spent P50,000 on materials, phone, utilities, etc. • He leased machines for P100,000 a year. • He paid P150,000 in wages. • He used P100,000 from his savings account, which pays five 5% interest a year. • He borrowed P400,000 at 10% a year from the bank. • He sold P1,600,000 worth of monitors. • Normal profit is P250,000 a year. Compute for the following: • Lee's explicit costs • Lee's implicit costs • Lee's economic profitWilliam and Miller Brown run a real estate brokerage firm. They have just moved into a new building and want to add some outdoor digital signage to advertise the firm's services. The sign they are considering has two display areas that can display two different images at the same time and costs $104,800. It is expected to have a useful life of 4 years. In an effort to recoup the cost of the sign, William and Miller will rent one display panel to other tenants in the building for $39,646 a year. Electricity to power the sign is expected to be $870 per year. (a) Your answer is correct. Calculate the annual net operating income generated by the new sign. Annual net operating income 12576 eTextbook and Media Attempts: 1 of 3 used (b) Calculate the accounting rate of return of the new sign. Accounting rate of return %William and Miller Brown run a real estate brokerage firm. They have just moved into a new building and want to add some outdoor digital signage to advertise the firm's services. The sign they are considering has two display areas that can display two different images at the same time and costs $104,800. It is expected to have a useful life of 4 years. In an effort to recoup the cost of the sign, William and Miller will rent one display panel to other tenants in the building for $39,646 a year. Electricity to power the sign is expected to be $870 per year. (a) Calculate the annual net operating income generated by the new sign. Annual net operating income 2$ eTextbook and Media