Question 4 horn company is considering the purchase

This preview shows page 3 - 6 out of 10 pages.

Question 4Horn Company is considering the purchase of a new machine for $128,000. The machinewould replace an old piece of equipment that costs $41,860 per year to operate. The newmachine would cost $16,140 per year to operate. The old machine currently in use can besold for $6,000 if the new machine is purchased. The new machine would have a usefullife of ten years with a $5,000 salvage value.Calculate theaccounting rate of returnon the machine that Horn Company is consideringbuying.12,300=11%
Question 5Detmer Enterprises has budgeted sales for the next four months as follows:Budgeted Sales in UnitsJanuary7,400 unitsFebruary5,300 unitsMarch3,900 unitsApril????? unitsDetmer's product sells for $20 each. Experience has shown that 10% of the company'ssales are cash sales and 90% of the company's sales are made on account. The sales onaccount are collected in the pattern 30% in the month of sale, 45% in the monthfollowing sale, and 25% is collected in the second month following sale.Calculate thetotal expected cash collections for the month ofMarch.
Question 6Detmer Enterprises has budgeted sales for the next four months as follows:Budgeted Sales in UnitsJanuary7,400 unitsFebruary5,300 unitsMarch3,900 unitsApril????? unitsDetmer's product sells for $20 each. Experience has shown that 10% of the company'ssales are cash sales and 90% of the company's sales are made on account. The sales onaccount are collected in the pattern 30% in the month of sale, 45% in the monthfollowing 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

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 10 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Winter
Professor
MARCSMITH
Tags
Accounting, Net Present Value, Quiz 6, ACCT 2300, Generally Accepted Accounting Principles, Internal rate of return, XYZ Company, Detmer

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture