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Major Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment

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Major Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment $225,000 Purchase price $375,000 Accumulated depreciation 90,000 -O- Annual operating costs 300,000 240,000 If the old equipment is replaced now, it can be sold for $60,000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment over the 5 year useful life is $90,000 $175,000) $15,000 $60,000 Tito Corporation had net income of $2,000,000 and paid dividends to common stockholders of $300,000 in 2017. The weighted average number of shares outstanding in 2017 was 400,000 shares. Tito Corporation's common stock is selling for $50 per share on the NASDAQ. Tito Corporation's price-earnings ratio is 10 times. O 5 times. 20 times. O 12 times. Dolan Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 $310,000 Raw materials inventory $260,000 300,000 Work in process inventory 160,000 190,000 Finished goods inventory 150,000 During 2017, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. If Dolan Company's cost of goods manufactured for 2017 amounted to $1,890,000, its cost of goods sold for the year is $1,850,000 $1,930,000. $2,000,000. $1,750,000

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