Waterways is considering the replacement of an antiquated machine that has been slowing down production because of breakdowns and added maintenance. The operations manager estimates that this machine still has 2 more years of possible use. The machine produces an average of 50.00 units per day at a unit cost of $6.80, whereas other similar machines are producing twice that much. The units sell for $9.30. Sales are equal to production on these units, and production runs for 260 days each year. The replacement machine would cost $68,000 and have a 2-year life. Given the information above, what are the consequences of Waterways replacing the machine that is slowing down production because of breakdowns? Replacing the machine will result in a of $ Waterways keep the old
Q: Which option does NOT form part of measurement bases in terms of IAS1? Select one: O a. Prime cost O…
A: In summary, IAS 1 does not specifically mention "prime cost" as a measurement basis, but it does…
Q: Required information [The following information applies to the questions displayed below.] A company…
A: Lets understand the basics.Ending inventory and cost of goods sold can be calculated using,(1)…
Q: Techtronics, Inc. manufactures and sells stereo systems that include an assurance-type warranty for…
A: In the balance sheets, unearned extended warranty revenue is recorded as unearned revenues in…
Q: On September 3, 2023, Twin Co. received a 10% $60,000 120-day note for consultancy services…
A: The maturity date of a fiscal instrument, similar as a promissory note, loan, or bond, is the date…
Q: The following data pertain to the Oneida Restaurant Supply Company for the year just ended. Budgeted…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Q: How should an expenditure for an ordinary repair to factory equipment be re accumulated…
A: The expense of keeping and restoring an item, often machinery, equipment, or property, to its normal…
Q: Gems Co. uses the indirect method to prepare its statement of cash flows. The following comparative…
A: A Statement of Cash Flow is a financial statement that includes the inflow and outflow of cash flow.…
Q: Pop Corporation paid 780,000 for 30% ownership of Son Corporation on December 31, 2026, when Son's…
A: When an entity invests more than 20% but less than 50% of the voting stock in another entity, the…
Q: Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For…
A: Lets understand the basics.The overhead is applied to the production on the basis of a…
Q: Rondeau, Incorporated, manufactures and sells two products: Product V9 and Product M6. Data…
A: Indirect costs incurred while producing goods or services. Overhead costs cannot be directly…
Q: Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called…
A: Variance analysis is a tool used by managers for performance evaluation and decision making which is…
Q: Splish Inc. issued $5,250,000 of
A: Journal entries refer to the concept of noting all the transactions of a company in the…
Q: Alaskan Fisheries, Incorporated, processes salmon for various distributors and it uses the…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…
A: The stockholder's equity section is a section of a company's balance sheet that shows the company's…
Q: Presented below are data on three promissory notes. Determine the missing amounts. (Round answers…
A: Personal loans, corporate loans, real estate transactions, and commercial agreements are all…
Q: Assume that on January 1, 2012, a parent company acquired a 70% interest in a subsidiary's voting…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: A company had 20,000 shares of common stock outstanding on January 1, 2021. In October, 110,000…
A: Earnings per share (EPS) is a financial ratio used to evaluate the profitability of a company on a…
Q: 1.) Create an income statement given the following information: For the Year endign 2022 Toy…
A: The income statement is a report that shows the profitability of the entity. The statement of income…
Q: b. In 20X2, sales increased to $5,890,000 and the assets for that year were as follows: Cash…
A: The ratio analysis helps to analyze the financial statements of the business on the basis of the…
Q: he charges to Work in Process-Assembly Department for a period, together with information concerning…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Required information [The following information applies to the questions displayed below] The first…
A: FIFO METHOD :— Under this method, equivalent units is calculated by adding equivalent units in…
Q: Presented below is information related to Sheffield Company. Beginning inventory Purchases Markups…
A: Ending inventory is the amount of inventory that an entity has in hand at the end of the period. It…
Q: Exercise 6-63 (Algorithmic) Inventory Costing Methods: Periodic Inventory System (Appendices 68) The…
A: The various methods for inventory valuation are FIFO, LIFO and average method. FIFO stands for First…
Q: What is the difference between a "capital/financing lease" and an "operating lease"? Where on the…
A: Financial statements are formal reports generated by a company's account system that give a…
Q: Exercise 6-4 (Algo) Basic Segmented Income Statement [LO6-4] Royal Lawncare Company produces and…
A: Lets understand the basics.The contribution margin income statement arranges the information so that…
Q: Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For…
A: Lets understand the basics.The overhead is applied to the production on the basis of a…
Q: A County had the following transactions. The county's fiscal year end is December 31. Analyze the…
A: The fundamental accounting equation, also known as the balance sheet equation, is the basis of…
Q: If Maria's taxable income before considering this gain is $296,000, what is Maria's tax liability…
A: When a capital asset is sold for a gain, the capital gain is subjected to tax which can be computed…
Q: Required information Problem 7-45 (LO 7-2) (Algo) [The following information applies to the…
A: Capital gains are evaluated by the amount earned from the sale of capital assets that can be used…
Q: A portion of the combined statement of income and retained earnings of Crane Ltd. for the current…
A: Weighted Average Shares is the average of the shares outstanding for the entire period. weight is…
Q: Advanced Products Corporation has supplied the following data from its activity-based costing…
A: Total product cost is the combination of direct material cost, direct labor cost and manufacturing…
Q: Assume the following information: Milling Department Beginning work in process inventory Units…
A: When the production process involves partially produced units or when inventory costs change over…
Q: Current Assets Contributed Capital Current Liabilities Investments Intangible Assets Long-Term…
A: Total assets = Total liabilities + Stockholder's equityA balance sheet comprises three components:…
Q: Assume that at the beginning of 2020
A: Depreciation is a demunition [reduction] in the value of an asset on account of its wear and…
Q: Using the following data, apply the high-low method of cost analysis to the three cost data groups:…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…
Q: Complete this question by entering your answers in the tabs below. Required A Required B Required C…
A: Direct cost are those cost which can directly assigen to product or a unit. The direct cost are…
Q: Sales revenue Service revenue Total revenue Operating expenses: Cost of goods sold SANTANA…
A: Cash flow statement is one of the financial statements being used in business. It shows all cash…
Q: During 20X1, a company reported an increase in the deferred tax liability account of $47,790, a…
A: Lets understand the basics.When temporary difference arise between the book profit and taxable…
Q: This year Luke has calculated his gross tax liability at $1,900. Luke is entitled to a $2,550…
A: Tax Refund:A tax refund is an amount that a person can claim while filing ITR when he/she has paid…
Q: Which financial statement shows the position of enterprise at a particular date? Select one: O a.…
A: As you have asked multiple question wecan solve only one question for you Please repost the other…
Q: Crane Company asks you to review its December 31, 2020, inventory values and prepare the necessary…
A: It is the stock held for sale to customers. The inventory comprises of raw materials, work in…
Q: Contribution Margin Income Statement Per Unit $ 6.00 For Year Ended December 31 Sales (470,000…
A: The income statement is an important financial record for investors, creditors, and corporate…
Q: PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point (LO 6-1,…
A: The break-even sales are the sales where business earns no profit or loss during the period. The…
Q: For Roche Inc., variable manufacturing overhead costs are expected to be $20.510 in the first…
A: Lets understand the budget.Management prepare budget in order to estimate future profit and loss…
Q: Pearl Inc. incurred a net operating loss of $455,000 in 2020. The tax rate for all years is 20%.…
A: As per IAS 12 Income Taxes, Deferred tax- asset is taxes recoverable in future. It can be due to…
Q: Gomez Inc. entered into a contract on January 1 to lease a vehicle for one year, with monthly…
A: A lease is defined as a contractual agreement incorporated between two business entities where one…
Q: PR 3-42 (Algo) Schedule of Cost of Goods Manufactured and Sold; Income Statement (LO 3-6) [The…
A: Cost of goods manufactured :— It is the total cost of completed finished goods transferred from work…
Q: Petty Cash PolekMart established a $1,050 petty cash fund on May 2. On May 30, the fund shows $326…
A: Petty cash fund is a small amount of cash that a business keeps aside to pay for minor, everyday…
Q: be 35% of revenues during each of the first two quarters, 25% of revenues during t
A: Budgeted income statement is statement that considers company projected revenues and expected cost…
Q: 2808 25 Carmen's Dress Delivery operates a mail-order business that sells clothes designed for…
A: The term expected cash collection is generally used while preparing the cash budget.. The expected…
Step by step
Solved in 3 steps
- Waterways is considering the replacement of an antiquated machine that has been slowing down production because of breakdowns and added maintenance. The operations manager estimates that this machine still has 2 more years of possible use. The machine produces an average of 60.00 units per day at a unit cost of $6.80, whereas other similar machines are producing twice that much. The units sell for $9.00. Sales are equal to production on these units, and production runs for 260 days each year. The replacement machine would cost $71,940 and have a 2-year life. Given the information above, what are the consequences of Waterways replacing the machine that is slowing down production because of breakdowns? Replacing the machine will result in a net loss of $ . Waterways should keep the old iWaterways is considering the replacement of an antiquated machine that has been slowing down production because of breakdowns and added maintenance. The operations manager estimates that this machine still has 2 more years of possible use. The machine produces an average of 50 units per day at a cost of $6.60 per unit, whereas other similar machines are producing twice that much. The units sell for $9.10. Sales are equal to production on these units, and production runs for 260 days each year. The replacement machine would cost $67,900 and have a 2-year life. Given the information above, what are the consequences of Waterways replacing the machine that is slowing down production because of breakdowns? Replacing the machine will result in a of S Waterways keep the old maWaterways is considering the replacement of an antiquated machine that has been slowing down production because of breakdowns and added maintenance. The operations manager estimates that this machine still has 2 more years of possible use. The machine produces an average of 50 units per day at a cost of $6.50 per unit, whereas other similar machines are producing twice that much. The units sell for $8.30. Sales are equal to production on these units, and production runs for 260 days each year. The replacement machine would cost $49,800 and have a 2-year life. Given the information above, what are the consequences of Waterways replacing the machine that is slowing down production because of breakdowns? Replacing the machine will result in a net loss of $ . Waterways should keep the old machin
- Higgins Machine Tools, Inc. is currently manufacturing one of its products on a hydraulic stamping press machine. The unit cost of the product is $16, and in the past year 4,000 units were produced and sold for $24 each. It is expected that the future demand of the product and the unit price will remain steady at 4,000 units per year and $24 per unit, respectively.Defender: The machine has a remaining useful life of three years and could be sold on the open market now for $8,000. Three years from now, thethe machine is expected to have a salvage value of $1,800.Challenger: A new machine would cost $40,000, and the unit manufacturing cost on the new machine is projected to be $14. The new machine has an expected economic life of five years and an expected salvage of $8,000. The appropriate MARR is 10%. The firm does not expect a significant improvement in the machine's technology to occur, and it needs the service of either machine for an indefinite period of time.(a) Compute the cash…Concord Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $95,000 for the machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years, it will need a $12,000 overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 9.000 frames per year, generating a total contribution margin of $92,500. Martson Molders currently sells a molding machine that will allow Concord Pix to increase production and sales to 12,000 frames per year. The machine, which has a ten-year life, sells for $135,000 and would cost $10,000 per year to operate. Concord Pix's current machine costs only $8,000 per year to operate. If Concord Pix purchases the new machine, the old machine could be sold at its book value of $5,000. The new machine is expected to have a salvage value of $19,900 at the end of its ten-year life. Concord…Sweet Wave Bakery has a machine that is continuing to break down and requires constant maintenance. The operations manager is estimating that this machine has only 2 more years of life. The machine produces an average of 50 units per day at a cost of $6.50 per unit. The bakery is considering replacing this machine with a similar machine. The new machine would cost $55,000 with a 2 year life but could produce twice the production of the existing machine. The units sell for $8.50. Sweet Wave operates the line with this machine 260 days each year. The sales are equal to production on this line. Instructions: Given the information above, what are the consequences of Sweet Wave replacing the maching that is slowing down production because of breakdowns? Revenues (Retain): Sell price x units per day x 260 days x 2 years Production Costs (Retain): Cost per unit x units per day x 260 days x 2 years Revenues (Replace): Sell price x Units per day (x2) x 260 days x 2 years Production Costs…
- As a result of improvements in product engineering, United Automation is able to sell one of its two milling machines. Both machines perform the same function but differ in age. The newer machine could be sold today for $63,500. Its operating costs are $21,800 a year, but in five years the machine will require a $19,100 overhaul. Thereafter operating costs will be $30,900 until the machine is finally sold in year 10 for $6,350. The older machine could be sold today for $25,900. If it is kept, it will need an immediate $24,500 overhaul. Thereafter operating costs will be $34,000 a year until the machine is finally sold in year 5 for $6,350. Both machines are fully depreciated for tax purposes. The company pays tax at 35%. Cash flows have been forecasted in real terms. The real cost of capital is 13%. a. Calculate the equivalent annual costs for selling the new machine and for selling the old machine. (Do not round intermediate calculations. Enter your answers as a positive value rounded…Chattanooga Development Company wants to evaluate replacing an older machine requiring significant maintenance which delays production. The older machine can be used for 2 more years of production. The Company could buy a replacement machine at a cost of $55,000 and the new machine would have a 2-year life. The units produced by the machine have a sales price of $8.50. The older machine produces an average of 50 units per day at a cost of $6.50 per unit. The new machine would produce twice as many units at the same cost. Sales units and production units are the same volume, and the machines are operated for 260 days each year. INSTRUCTIONS: Prepare the analysis to evaluate whether the Company should retain or replace the machine. Indicate what the Company should do.Bramble Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $88,000 for the machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years, it will need a $12,000 overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 11,000 frames per year, generating a total contribution margin of $85,500. Martson Molders currently sells a molding machine that will allow Bramble Pix to increase production and sales to 15,000 frames per year. The machine, which has a ten-year life, sells for $131,000 and would cost $12,000 per year to operate. Bramble Pix's current machine costs only $8,000 per year to operate. If Bramble Pix purchases the new machine, the old machine could be sold at its book value of $5,000. The new machine is expected to have a salvage value of $19,500 at the end of its ten-year life.…
- Searching for ways to cut costs and increase profit, one of the industrial engineers at Home Comfort Furniture Manufacturers, Inc. determined that the equivalent annual worth of an existing machine over its remaining useful life of 2 years is $70,000 per year. The IE also determined that used machines like the one currently in use are not available any longer, but the defender can be replaced with a challenger that is more advanced. It will have an AW of $80,000 if it is kept for 2 years or less, $75,000 if it is kept between 3 and 4 years, and $65,000 if it is kept for 5 to 10 years. If the company uses a specified 3-year planning horizon and an interest rate of 15% per year, determine (a) when the company should replace the machine, and (b) the AW for the next 3 years.Whispering Winds Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $108,000 for the machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years, it will need a $8,000 overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 15,000 frames per year, generating a total contribution margin of $102,000.Martson Molders currently sells a molding machine that will allow Whispering Winds Pix to increase production and sales to 20,000frames per year. The machine, which has a ten-year life, sells for $143,000 and would cost $15,000 per year to operate. Whispering Winds Pix’s current machine costs only $8,000 per year to operate. If Whispering Winds Pix purchases the new machine, the old machine could be sold at its book value of $5,000. The new machine is expected to have a salvage value of $20,000 at…Searching for ways to cut costs and increase profit, one of the industrial engineers at Home Comfort Furniture Manufacturers, Inc. determined that the equivalent annual worth of an existing machine over its remaining useful life of 2 years is $-71,000 per year. The IE also determined that used machines like the one currently in use are not available any longer, but the defender can be replaced with a challenger that is more advanced. It will have an AW of $-83,550 if it is kept for 2 years or less, $-75,075 if it is kept between 3 and 4 years, and $-65,000 if it is kept for 5 to 10 years. If the company uses a specified 3-year planning horizon and an interest rate of 14% per year. a) Determine when the company should replace the machine. b) Determine the AW for the next 3 years. a) The company should [Keep the machine for 2 years and then replace with the challenger b) The AW for the next 3 years is $