Stella is tired of her sewing machine continually breaking down. The threading mechanism takes her significant...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Stella is tired of her sewing machine continually breaking down. The threading mechanism takes her significant time to fix every time and sometimes causes tears in the fabric so she has to start over. The current machine cost her mother $575 many years ago. A local repair shops says the machine can be maintained for $125 per year, which will allow it to be used heavily for three more years. A replacement sewing machine will make things more efficient and Stella will be able to make an additional 3 swimsuits per hour. A new industrial sewing machine costs $1,400 and Stella is unsure of how she would depreciate it. If she opens the store, she will need two sewing machines. Issue #5 Replacing the sewing machine Analysis Conclusion/Recommendation SHWETA Issue #6 Sewing machine depreciation Analysis Stella is tired of her sewing machine continually breaking down. The threading mechanism takes her significant time to fix every time and sometimes causes tears in the fabric so she has to start over. The current machine cost her mother $575 many years ago. A local repair shops says the machine can be maintained for $125 per year, which will allow it to be used heavily for three more years. A replacement sewing machine will make things more efficient and Stella will be able to make an additional 3 swimsuits per hour. A new industrial sewing machine costs $1,400 and Stella is unsure of how she would depreciate it. If she opens the store, she will need two sewing machines. Issue #5 Replacing the sewing machine Analysis Conclusion/Recommendation SHWETA Issue #6 Sewing machine depreciation Analysis
Expert Answer:
Answer rating: 100% (QA)
ANSWER There are a few different options for depreciation on the new sewing machines One option is the straightline method which would depreciate the machines equally over their five year life This wo... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
Students also viewed these accounting questions
-
6 Year 3% 5% .837 1.746 8 10 Table of Present Value Factors 12 15 20 Interest Rate .744 7% 8% 666 .630 9% .789 .677 582 .540 .502 .614 508 463 .701 557 444 .642 481 1362 .554 .377 1.258 596 .215 422...
-
On January 1, 2012, Cole Corporation entered into a 10 year lease agreement. The following summarizes the agreement: * Payment of the $30,300 are due at inception of the lease (January 1st, 2012) and...
-
If the economy is in Y1 in the graph below, and there is no intervention from fiscal and monetary policy, then, over time: AD-AS Price level P AD Y LRAS Y SRAS Real GDP the AD curve will shift out to...
-
What does the following code fragment print? String \(s=\) "He11o World"; s. toUpperCase(); s. substring (6, 11); StdOut.println(s);
-
Construct a table showing the payoff from a bull spread when puts with strike prices K1 and K2 are used (K2 > K1).
-
How can entrepreneurs make their business plans more convincing?
-
An unfinished concrete rectangular channel is \(5 \mathrm{~m}\) wide and has a slope of \(0.50^{\circ}\). The water is \(0.5 \mathrm{~m}\) deep. Find the discharge rate for uniform flow.
-
Stylz Company, a recent start-up fashion retailer based in the United States, is deciding between opening its first sales presence in either Italy's Tuscany Region or Spain's Matarrana Region....
-
If the fixed manufacturing costs were $23,800 and the fixed selling and administrative expenses were $10,780, prepare an income statement according to the variable costing concept. Round all final...
-
1. Prepare manual entries and complete the general and subsidiary ledgers. 2. Prepare an account receivable and account payable reconciliation of the subsidiary ledger accounts to the control...
-
Which reagent(s) would you use to accomplish the below reaction? CH3 CH3 H3C. CH H3C O 1) Hg(OAc)2, H20, 2) NABH4 O MCPBA O 1) OsO4, 2) H20, NAHSO3 O 1) R2BH, 2) NaOH, H2O2 O HESO4, H20, zSO4
-
Many cafes are putting sensors on the bottom of cups to help alert the wait staff that a customer needs a refill. Would you introduce this technology to the cafe? If so, are there any concerns with...
-
Intuit's accounting solution for small businesses, startups, freelance bookkeepers, and independent accounting firms. Offering robust tools for expense tracking, tax calculation, invoice management,...
-
On June 30, 2006, the condensed balance sheet for the partnership of Eddy, Fox, and Grimm, together with their respective profit and loss sharing percentages were as follows: Assets, net of...
-
list the three main divisions of any manufacturing business and explain who would take charge of each division and what employees would be needed to work in each division
-
Sue is selling her house for $265,000. Closing is set for June 19, and Sue owns the day of closing. She has a loan balance of $78,000 at a 4.2% rate, and she's current on her payments. She prepaid...
-
A hotel sells rooms at either a full or discount of price. All rooms can be sold at the discount price. The hotel has computed a critical fraction = 25. It has also constructed a table below showing...
-
Banner Company acquires an 80% interest in Roller Company for $640,000 cash on January 1, 2013. The NCI has a fair value of $160,000. Any excess of cost over book value is attributed to goodwill. To...
-
Consider the following information taken from the stockholders equity section: Required: 1. Calculate the following for 2012 (Note: Round answers to two decimal places): Stockholder Payout...
-
Gary Means, manager of a division that produces industrial machinery, and his controller, Donna Simpson, a certified management accountant and certified public accountant: Gary: Donna, we have a real...
-
Multiple Choice Questions 1. If a company uses the direct write-off method of accounting for bad debts, a. It is applying the matching principle. b. It will reduce the accounts receivable account at...
-
Determine whether each of the following statements is true or false: Management accountants often work in cross-functional teams throughout the organization.
-
Determine whether each of the following statements is true or false: The internal audit function reports to the audit committee of the board of directors.
-
Determine whether each of the following statements is true or false: Management accountants are now more often looked upon as internal business advisors rather than bean counters recording historical...
Study smarter with the SolutionInn App