Accounting Answers

assume that tom and jerry from a partnership with investment of 88000$ and120000$ separately. Determine the partnership in net income of 88000$ for the division of the partnership net income under the following conditions.

1. No agreement concerning division
2. Division is made in the ration of their original investment
3. Division is made according to the agreement that he rate of 8% allowed on original investment and the remainder divided in the ratio of 2:1

list the advantage and disadvantage of corporate form of organization

what are the common reason for partnership dissolution

explain the meaning of the term double taxation at it applies to corporate profit

SLR has set a target of 20% annual rate of return on investments. The fixed assets employed on one of their products, the X2, amount to £21,000,000. Working capital investment for the X2 is £4,000,000. Total operating costs to be incurred on the X2 for next year are forecast to be £8,000,000. SLR uses cost plus pricing.

What is the required percentage mark up on the costs for X2?

a) HairNice Production Sdn Bhd is considering the production of a new conditioning shampoo which will require the purchase of new mixing machinery. 

The machinery will cost RM375,000, is expected to have a useful life of 10 years and is expected to have a salvage value of RM50,000 at the end of 10 years. 

The machinery will also need a RM35,000 overhaul at the end of year six. 

A RM40,000 increase in working capital will be needed for this investment project. 

The working capital will be released at the end of the 10 years. 

The new shampoo is expected to generate net cash inflows of RM85,000 per year for each of the 10 years. 

HairNice Production's discount rate is 16%.

i）Compute the net present value (NPV) of the investment opportunity? 

ii) Based on your answer to (a) above, should Anita go ahead with the new conditioning shampoo?      

explain the meaning of cost of capital and its relevance in a net present value (NPV) analysis.

On September 30th, Company “A” sold a vehicle for 20,000 . to company “B”, the historical cost for the vehicle was 100,000 . and its accumulated depreciation was 90,000 . at the time of sale. What are the required Journal entries to be made in both companies?

On December 31, 2018, Company “A” had a loan commitment amounted 100,000 ., classified as follows:- 40,000 . as short-term, 60,000. as long-term. On January 10, 2019, the company agreed to refinance the loan commitments with an extra 10,000 . of interest, so the loan classifies as follows:-

25,000 . as short-term, 85,000 as long-term.

What’s the loans balance that’s should appear on the company’s financial statements, note that the financial statements were issued on February 12, 2019? Why

Lisa Company's required rate of return is 14%. The company is considering the purchase of a new machine that will save RM10,000 per year in cash operating costs. The machine will cost RM40,000 and will have an eight-year useful life with zero salvage value.

explain the meaning of cost of capital and its relevance in a net present value (NPV) analysis.