Answer:
Straight line method rate = 1/ Number of years * 100 = 1/25*100 = 4%
Double declining balance depreciation = 2*Straight line method rate*Book value
First Year depreciation = 8%*$960,000
First Year depreciation = $76,800
Second year depreciation = 8% * (Book Value as on 1st year - First Year depreciation)
Second year depreciation = 8%*($960,000-$76,800)
Second year depreciation = 8%*$883,200
Second year depreciation = $70,656
Answer:
b. Financing activities.
Explanation:In the financial activities section of the statement of cash flows, the operations related to the entry and exit of funds for activities that increase the liability or stockholders´equity, but that do not make the main activity of the company must be recorded. Such as: issuance of common stock for cash.
Answer:
Discount yield is 8%
Bond equivalent yield is 8.19%
Explanation:
The discount yield on the commercial paper is calculated as:
(($500,000 - $495,000)/$500,000 ) x (360/45)
= ($5,000/$500,000 x (360/45)
= 0.01 x 8
= 0.08
= 8%
And bond equivalent yield is calculated as:
(($500,000 - $495,000)/$495,000) x (365/45)
= ($5,000/$495,000) x 8.11
= 0.0101 x 8.11
= 0.0819
= 8.19%
Answer:
Lane splitting is riding a bicycle or motorcycle between lanes or rows of slow moving or stopped traffic moving in the same direction. It is sometimes called whitelining, or stripe-riding. This allows riders to save time, bypassing traffic congestion, and may also be safer than stopping behind stationary vehicles.
Explanation:
Answer:
A business can improve its average contribution ratio and its overall profitability, by shifting its sales mix to include more products with high contribution margin ratios.
In this case American steel company shift in product mix is due to a higher proportion of export sales. This shift caused to decline net income of the company. This is because the contribution margin ratio on export sales may lower than the other product mix. So, the shift of product mix to low contribution sales will cause to decline the net income.