ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.12 : You, as an engineer, buy a piece of biochemical instrument to start a servicing business. The instrument has a useful life of 3 years, that costs $60k. The instrumental business generates $100k per year. The labor costs $50k per year. The $60k new instrument depreciates in its value evenly up to 3 years, thereafter the old instrument needs to be replaced by another piece of new instrument. (i) In the first year of this engineering business : (a) what is its starting cash? (b) calculate the depreciation value of the instrument. (c) find the operating profit generated. (d) what is the capital expense of the business? (e) calculate the cash from operation. (f) calculate the ending cash. (ii) Based on the income statement of the business in the second year : (a) find the capital expense of the business. (b) what is its starting cash? (c) calculate the depreciation value of the instrument. (d) find the operating profit generated. (e) calculate the cash from operation. (f) calculate the ending cash.
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.12 : (i)(a) Starting cash = $60k = cost of instrument. (b) Depreciation = instrumental (cost / useful life) = $60k / 3 years = $20k / year. (c) Operating profit = revenue - labor cost - depreciation = $100k - $50k - $20k = $30k. (d) Capital expense = $60k = cost of instrument. (e) Cash from operation = operating profit + depreciation = $30k + $20k = $50k. (f) Ending cash = starting cash + cash from operation - capital expense = $60k + $50k - $60k = $50k. (ii) (a) Capital expense of year 2 = 0. (b) Starting cash of year 2 = ending cash of year 1 = $50k. (c) Depreciation value = answer in (i)(b) = $20k / year. (d) Operating profit = answer in (i)(c) = $30k. (e) Cash from operation = answer in (i)(e) = $50k. (f) Ending cash = answer in (ii)(b) + answer in (ii)(e) - answer in (ii)(a) = $50k + $50k - 0 = $100k. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
| Is This Answer Correct ? | 0 Yes | 0 No |
Explain the method adopted to minimize shell side pressure drop in a shell?
how to reduce COD from plant waste water closed circulation system
how does the properties of an element changes by increasing protons and electrons?
which type of packing gives large interfacial area stacked or random?
Question 76 - Let C% be the fractional crystallinity, Rs = density of sample, Ra = density of amorphous form and Rc = density of crystalline form. In a polymer, these unknowns could be related by the equation C% = (Rc / Rs) (Rs - Ra) / (Rc - Ra). (a) Find the equation of Rc as a function of C%, Rs and Ra. (b) Two samples of a polymer, C and D exist. For sample C, C% = 0.513 when Rs = 2.215 unit. For sample D, C% = 0.742 when Rs = 2.144 unit. Both samples C and D have the same values of Ra and Rc. Find the values of Ra and Rc in 6 decimal places.
What are the assumptions made for kynch theory?
What do you know about us?
4 Answers Allfon, Bhushan Power Steel, CPCL, Crystol, Trident,
what are the reaction between sodium meta bi sulphate and chlorine?
ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.27 : A biochemical engineering consultancy applies construction accounting in its finance. Its project began on 1 January 2010. Total revenue generated from the project was $9000. On 1 January 2011 as the budget, $2000 had been spent, with $6000 expected. However, the project cost increased latter, causing deviation from its initial budget on 1 January 2012, where $7000 had been spent, with $1400 expected. Let (estimated total cost) = (spent cost) + (expected cost to be spent), (percentage completion) = 100 (spent cost) / (estimated total costs), (total expected profits) = (total revenue) - (estimated total costs). Calculate : (a) total expected profits on 1 January 2011 and 1 January 2012; (b) estimated total cost as and not as the budget; (c) percentage completion of the project since the project began, in the first and second years.
What is g and gc in a bernoulli's theorem?
How LPG gets liquefied by elevating the pressure?If the pressure is increased the temperature also increases,then how LPG is in liquid form?
CHEMICAL ENERGY BALANCE - EXAMPLE 11.2 : Calculate the cooling duty, H required to condense and cool acetone from 100 degree Celsius to 25 degree Celsius at atmospheric pressure. The heat of vaporization for acetone at its normal boiling point is 30.2 kJ / mol. The boiling point of acetone at atmospheric pressure is 56 degree Celsius. The flowrate of acetone through the condenser is 100 mol / s = N. Value of sensible heat needed to increase the temperature of acetone in liquid form from 25 to 56 degree Celsius is 4.06 kJ / mol. Value of sensible heat needed to increase the temperature of acetone in vapor form from 56 to 100 degree Celsius is 3.82 kJ / mol. Unit of H is kJ / s.
Civil Engineering (5086)
Mechanical Engineering (4456)
Electrical Engineering (16639)
Electronics Communications (3918)
Chemical Engineering (1095)
Aeronautical Engineering (239)
Bio Engineering (96)
Metallurgy (361)
Industrial Engineering (259)
Instrumentation (3014)
Automobile Engineering (332)
Mechatronics Engineering (97)
Marine Engineering (124)
Power Plant Engineering (172)
Textile Engineering (575)
Production Engineering (25)
Satellite Systems Engineering (106)
Engineering AllOther (1379)