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The following information was presented by User-Friendly Industries Company for an asset purchased at the beginning of the previous year $30,000 Original cost of the
The following information was presented by User-Friendly Industries Company for an asset purchased at the beginning of the previous year $30,000 Original cost of the asset Useful life of the asset Annual operating profit, including depreciation Salvage value 10 years $8,000 What is the return on investment (ROI) assuming User-Friendly (a) uses the straight-line method for depreciation and (b) beginning-of-year net book values to compute ROI? 26.7%. o 29.6% o 36.4%. The Ralston Company manufactures a special line of graphic tubing items. The company estimates it will sell 90,000 units of this item in 2016. The beginning finished goods inventory contains 35,000 units. The target for each year's ending inventory is 25,000 units. Each unit requires five feet of plastic tubing. The tubing inventory currently includes 92,500 feet of the required tubing. Materials on hand are targeted to equal 3 months' production. Any shortage in materials will be made up by the immediate purchase of materials. Sales take place evenly throughout the year What is the production budget (in units) for 2016? 67,500 80,000 O 90,000 o 115,000
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