Acme Inc. is evaluating a new project to produce rockets. The project will involve $200,000 to purchase a new machine.

Every year, Acme will need to spend $5,000 to keep the machine running and the revenue is $75,000 per year by selling the rockets.

Every 2 years, Acme will have to spend $1,000 to update the machine.

Acme Inc. expects that the machine will last for 10 years, and at the end of 10 years, Acme will be able to sell the machine for $50,000.

1. What is the annual operations and maintenance cost?

a. $5,000

b. $5,500

c. $6,000

d. $50,000

e. $35,000

2. What is the overhaul cost?

a. $500 every year

b. $1,000 every five years

c. $5,000 every five years

d. $2,500 every two years

e. $70,000 every ten years

3. What is the salvage value of the machine at the end of 10 years?

a. $45,000

b. $50,000

c. $150,000

d. $250,000

e. $945,000

Instructions: use the following information to construct the 2000 balance sheet and income statement for carolina business machines. round all numbers to the nearest whole dollar. all numbers are in thousands of dollars. be sure to read the whole problem before you jump in and get started. at the end of 1999 the firm had $43,000 in gross fixed assets. in 2000 they purchased an additional $14,000 of fixed asset equipment. accumulated depreciation at the end of 1999 was $21,000. the depreciation expense in 2000 is $4,620. at the end of 2000 the firm had $3,000 in cash and $3,000 in accounts payable. in 2000 the firm extended a total of $9,000 in credit to a number of their customers in the form of accounts receivable. the firm generated $60,000 in sales revenue in 2000. their cost of goods sold was 60 percent of sales. they also incurred salaries and wages expense of $10,000. to date the firm has $1,000 in accrued salaries and wages. they borrowed $10,000 from their local bank to finance the $15,000 in inventory they now have on hand. the firm also has $7,120 invested in marketable securities. the firm currently has $20,000 in long-term debt outstanding and paid $2,000 in interest on their outstanding debt. over the firm's life, shareholders have put up $30,000. eighty percent of the shareholder's funds are in the form of retained earnings. the par value per share of carolina business machines stock is

Amarket that consists of all possible consumers regardless of their specific needs or wants is a

Acompany recorded a check in its accounting records as $87. however, the check was actually written for $78 and it cleared the bank as $78. what adjustment is needed to the personal statement? a. decrease by $9 b. increase by $9 c. decrease by $18 d. increase by $9