Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / srikanth reddy
No. loose tools are treated as fixed assets
| Is This Answer Correct ? | 54 Yes | 52 No |
Post New Answer View All Answers
what is the nature of profit and loss approprition account.which entity prepare this.
Real,Nominal or Personal. Where do reserves, general reserve and Specific Reserve Go? and why?
What a deferred asset is and give an example?
Is there a difference between accounting for conversion of bonds and accounting for the conversion of preferred stock?
What is an interest rate swap
Mention what are things will not be included in a bank reconciliation statement?
whats difference between manufacturing account & cost account
What are the objects of cost accountancy?
Follow up ageing balances of Debtors & Creditors and also Inventory
DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in haryana. The company's sales in the year ending on 31st march 2007 were Rs.1000 million(Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of the company is 14 percent.The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30 million per annum. The plant can be sold for Rs.200 million: (a) The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annum installment of interest and repayment of principal. (b) A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: (1) Should the company expand its capacity? show the computation of NPV. (2) What is the annual installment of bank loan? (3) calculate the quarterly installment of the financial institution loan. (4) should the company borrow from the bank of from the financial institution?
What are the most important goals of accounts receivable?
how will you adjust voluntary seperation payment in cash flow statement
professional tax payment for april 2017 paid from ranbeers credit card what are the expesses booking entry in tally
What is liabilities and what all does include in current liabilities?
Which accounting applications are your familiar with?
