Question 4 horn company is considering the purchase

Question 4
Horn Company is considering the purchase of a new machine for $128,000. The machine
would replace an old piece of equipment that costs $41,860 per year to operate. The new
machine would cost $16,140 per year to operate. The old machine currently in use can be
sold for $6,000 if the new machine is purchased. The new machine would have a useful
life of ten years with a $5,000 salvage value.
Calculate the accounting rate of return on the machine that Horn Company is considering
buying .
12,300
= 11%

Question 5
Detmer Enterprises has budgeted sales for the next four months as follows:
Budgeted Sales in Units
January 7,400 units
February 5,300 units
March 3,900 units
April ????? units
Detmer's product sells for $20 each. Experience has shown that 10% of the company's
sales are cash sales and 90% of the company's sales are made on account. The sales on
account are collected in the pattern 30% in the month of sale, 45% in the month
following sale, and 25% is collected in the second month following sale.
Calculate the total expected cash collections for the month of March .

Question 6
Detmer Enterprises has budgeted sales for the next four months as follows:
Budgeted Sales in Units
January 7,400 units
February 5,300 units
March 3,900 units
April ????? units
Detmer's product sells for $20 each. Experience has shown that 10% of the company's
sales are cash sales and 90% of the company's sales are made on account. The sales on
account are collected in the pattern 30% in the month of sale, 45% in the month
following sale, and 25% is collected in the second month following sale.
Detmer's pro forma balance sheet at April 30 reported a budgeted accounts receivable