Answer:
True
Explanation:
Data security is very important for a business. The business generates, Collects and processes the available data, which incur huge expenses. To protect this data management should place some internal control within the organization. Backing up the data is also a control to protect the organization's data.
The test of storage procedure should be in place in order to strength of internal control. So, it is true to test data storage procedures periodically to ensure that backed up data is correct and complete, and that the storage media or cloud-based storage service works properly.
Pharoah Company has a factory machine with a book value of $90,800 and a remaining useful life of 7 years. It can be sold for $27,200. A new machine is available at a cost of $407,400. This machine will have a 7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $640,100 to $581,800. Prepare an analysis showing whether the old machine should be retained or replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
Analysis of Total cost over the period of 7 years
Retain Old Buy New Total
1.Variable Operating Cost $640,100 $581,800 ($58,300)
2.Old Machine Book Value
Retain; Annual Depreciation $12,971 $0 ( $12,971)
Replace: Lump sum Written Off $0 $90,800 $90,800
3.Old Machine Disposal Value $0 ($27,200) ($27,200)
4.Initial Purchase Cost New $0 $407,400 $407,400
Total Cost $653,071 $1052,800 $399,729
Explanation:
Replacement of Machine is a Capital Investment or Long term decision.One aspect of asset replacement is how to deal with book value (written down value) of old equipment.
Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division’s return on investment (ROI), which has been above 20% each of the last three years. Derrick is considering a capital budgeting project that would require a $3,080,000 investment in equipment with a useful life of five years and no salvage value. Holston Company’s discount rate is 17%. The project would provide net operating income each year for five years as follows:
Sales $3,400,000
Variable expenses 1,450,000
Contribution margin 1,950,000
Fixed expenses:
Advertising, salaries, and other fixed
out-of-pocket costs $670,000
Depreciation 828,000
Total fixed expenses 1,498,000
Net operating income $452,000
Required:
a. Compute the project's net present value.
b. Compute the project's simple rate of return.
c. Would the company want Derrick to pursue this investment opportunity?
d. Would Derrick be inclined to pursue this investment opportunity?
Answer:
a. Project's net present value is $1,015,163.09
b. Simple rate of return is 15%
c. Yes. The reason is that the project has a positive net present value of $1,015,163.09.
d. No. The reason is that the simple rate of return of 15% obtained in part b is lower the division’s return on investment (ROI), which has been above 20% each of the last three years.
Explanation:
a. Compute the project's net present value.
To compute this, we first calculate the annual cash inflow as follows:
Annual cash inflow = Net operating income + Depreciation = $452,000 + $828,000 = $1,,280,000
Now, the project's net present value can be calculated using the formula for calculating the present of an ordinary annuity as follows:
PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)
Where;
PV = Present value of the annual cash flow = ?
P = Annual cash inflow = $1,280,000
r = Discount rate = 17%, or 0.17
n = Equipment useful years = 5
Substitute the values into equation (1) to have:
PV = $1,280,000 * [{1 - [1 / (1 + 0.17)]^5} / 0.17]
PV = $4,095,163.09
Project's net present value = PV - Project's initial investment = $4,095,163.09 - $3,080,000 = $1,015,163.09
b. Compute the project's simple rate of return
This can be computed as follows:
Simple rate of return = Net operating income / Initial investment = $452,000 / $3,080,000 = 0.15, or 15%
c. Would the company want Derrick to pursue this investment opportunity?
Yes. The reason is that the project has a positive net present value of $1,015,163.09.
Note that had it been the net present value of the project was negative, the company would not want to Derrick to pursue this investment opportunity since the decision of the company is based on whether the project's NPV is positive or negative.
d. Would Derrick be inclined to pursue this investment opportunity?
No. The reason is that the simple rate of return of 15% obtained in part b is lower the division’s return on investment (ROI), which has been above 20% each of the last three years.
Pursuing this investment opportunity will therefore reduce the Overall ROI of the division and Derrick will not get annual pay raises if this happens.
Sea Blue manufactures flotation vests in Charleston, South Carolina. Sea Blue's contribution margin income statement for the month ended December 31, 2018, contains the following data:
Sea Blue
Income Statement
For the Month Ended December 31, 2018
Sales in Units 32,000
Net Sales Revenue $608,000
Variable Costs:
Manufacturing 96,000
Selling and Administrative 108,000
Total Variable Costs 204,000
Contribution Margin 404,000
Fixed Costs:
Manufacturing 124,000
Selling and Administrative 94,000
Total Fixed Costs 218,000
Operating Income $186,000
Suppose Overboard wishes to buy 4,600 vests from Sea Blue. Sea Blue will not incur any variable selling and administrative expenses on the special order. The Sea Blue plant has enough unused capacity to manufacture the additional vests. Overboard has offered $15 per vest, which is below the normal sales price of $19.
1. Identify each cost in the income statement as either relevant or irrelevant to Sea Blue's decision.
a. Variable Manufacturing Costs
b. Variable Selling and Administrative Costs
c. Fixed Manufacturing Costs
d. Fixed Selling and Administrative Costs
2. Prepare a differential analysis to determine whether Sea Blue should accept this special sales order.
3. Identify long-term factors Sea Blue should consider in deciding whether to accept the special sales order. In addition to determining the special order's effect on operating profits, Sea Blue's managers also should consider the following:
A. Will Sea Blue's other customers find out about the lower sale price Sea Blue accepted from Overboard? If so, will these other customers demand lower sale prices?
B. Will the special order customer come back again and again, asking for the same reduced price?
C. How will Sea Blue's competitors react? Will they retaliate by cutting their prices and starting a price war?
D. All of the above
E. None of the above
Answer:
1. Variable Cost
Manufacturing 96,000 ( Relevent )
Selling and administrative 108,000 ( Irrelevent )
Fixed Cost
Manufacturing 124,000 ( Irrelevent )
Selling and administrative 94,000 (Irrelevent )
2. $55,200
3. A. If the regular customer found out about this order and will demand a lower price?
B. Will this order customer come back again and again asking the same reducted price?
C. Will this order price will start a price war with the competitors?
Explanation:
1. Calculation to Identify each cost in the income statement as either relevant or irrelevant to Sea Blue's decision.
Variable Cost
Manufacturing 96,000 ( Relevent )
Selling and administrative 108,000 ( Irrelevent )
Fixed Cost
Manufacturing 124,000 ( Irrelevent )
Selling and administrative 94,000 (Irrelevent )
2. Preparation of a differential analysis to determine whether Sea Blue should accept this special sales order.
Differential analysis
Expected increase in income in revenue
( 4,600 vest * $15 per vest ) 69,000
Less :Expected increase in Variable manufacturing
( 4,600 vest * $3 per vest) (13,800)
=$55,200
Variable manufacturing cost of $96,000 / divide by 32,000 units will give us $3
Based on the above calculation Sea blue should accept this order reason been that the order will increase their operating income by the amount of $55,200.
3. The manager of Sea blue should know that the sale might affect their regular sale in long run.
Therefore In addition to determining the special order's effect on operating profits, Sea Blue's managers also should consider:
A. If the regular customer found out about this order and will demand a lower price?
B. Will this order customer come back again and again asking the same reducted price?
C. Will this order price will start a price war with the competitors?
In capital rationing, alternative proposals that survive initial screening by cash payback and average rate of return methods are further analyzed using:________
Answer:
Net present value and internal rate of return
Explanation:
when making a decision between alternative projects, initial analysis is done with the cash payback and average rate of return.
Cash payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows
Average rate of return = Average net income / average book value.
this is followed by the Net present value analysis and Internal rate of return determination.
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
project with the highest positive project NPV should be chosen.
Also, a project with an IRR greater than the discount rate should be chosen. when choosing between alternative projects, the project with the highest IRR should be chosen if the IRR is greater than the discount rate.
You, as the team leader, were not aware of the concerns of the Marketing Department, although certain members of your team have known about the concerns for some time. Which symptom of Groupthink (Irving Janis) may your team be displaying
Answer:
Self-Appointed Mindguards
Explanation:
This is an incomplete information
Irving Janis identified eight symptoms of Groupthink: Illusion of Invulnerability, Belief of Inherent Morality of the Group, Collective Rationalization, Out-group Stereotypes, Self-Censorship, Illusion of Unanimity, Direct Pressure on Dissenters, and Self-Appointed Mindguards. You are leading a Decision Making Team and suspect that your team may be suffering from Groupthink. Identify which symptom your team may be displaying.Group of answer choices Self-Appointed Mindguards. Belief in Inherent Morality of the Group. Illusion of Unanimity. Self-Censorship.
The self-appointed mind guards refer to the actions where the company or community members or both secure their group that contains the contradicting views and decisions
here, in the given situation, as a team leader, you dont know the concerns but your team is known about the concerns
So this symptom reflects the self-appointed mind guards
Patterson Company owns 80% of the outstanding common stock of Stevens Company. On June 30, 2013, landcosting $500,000 is sold by one affiliate to the other for $800,000.Required:Prepare in general journal form the workpaper entries necessary because of the intercompany sale of land in theconsolidated financial statements workpaper for the year ended December 31, 2014, assuming that:A. Patterson Company purchased the land from Stevens Company.B. Stevens Company purchased the land from Patterson Company.
Answer:
1. Sale of land by Stevens (subsidiary) - Upstream transaction
General Journal
Date Particulars Debit Credit
31-Dec-14 Retained earnings A/c $240,000
(300,000*80%)
Non controlling interest $60,000
(300,000*20%)
To, Land $300,000
(Being profit on sale eliminated)
2. Sale by Patterson (holding) - Downstream transaction
Date Particulars Debit Credit
31-Dec-14 Retained earnings a/c $300,000
To, Land $300,000
(Being profit on sale earlier recognized by holding eliminated)
An organization wants to reduce the possibility of outages when changes are implemented on the network. What should the organization use
Complete Question:
An organization wants to reduce the possibility of outages when changes are implemented on the network. What should the organization use?
A. Change management
B. Configuration management
C. Configuration management database
D. Simple Network Management Protocol
Answer:
A. Change management.
Explanation:
An organization wants to reduce the possibility of outages when changes are implemented on the network. What the organization should use is a change management.
Conor Airlines Inc. recently issued $50 par value preferred stock that pays a 8.25% dividend rate per year. Yahoo.finance shows that the stock has a beta of 0.97. The current risk-free rate is 2.50% and the market return is 11%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?
Answer: $38.39
Explanation:
First calculate the required return according to CAPM;
Required return = Risk free rate + beta ( market return - risk free rate)
= 2.50% + 0.97 ( 11% - 2.50%)
= 10.745%
Then using the Dividend discount model and remembering that there is no growth rate;
Value = Next dividend / ( required return - growth rate)
= (50 * 8.25%) / ( 10.745% - 0)
= 4.125/10.745%
= $38.39
Answer:
$38.29
Explanation:
Ke = Rf+Beta*(Rm-Rf)
Ke=0.0250+0.97*(0.11+0.0250)
Ke=0.10745
Ke=10.75 appr.
Po= Dividend / (Ke-g)
Po= 50*0.0825 / (0.10745 - 0)
Po=4.125/0.10745
Po=38.3899
Po=38.29
Thus, the intrinsiv value of this preferred stock is $38.29
Mojo Mining has a bond outstanding that sells for $2,120 and matures in 18 years. The bond pays semiannual coupons and has a coupon rate of 6.66 percent. The par value is $2,000. If the company's tax rate is 40 percent, what is the aftertax cost of debt?
A. 3.96%
B. 6.24%
C. 5.82%
D. 3.66%
E. 3.45%
Answer:
D. 3.66%
Explanation:
For computing the after tax cost of debt we need to apply the RATE formula i.e to be shown in the attachment
Given that,
Present value = $2,120
Future value or Face value = $2,000
PMT = $2,000 × 6.6% ÷ 2 = $66.60
NPER = 18 years × 2 = 36 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 3.05% × 2 % = 6.10%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 6.10% × ( 1 - 0.40)
= 3.66%
Byrd Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 205,000 shares of stock outstanding. Under Plan II, there would be 125,000 shares of stock outstanding and $1.73 million in debt outstanding. The interest rate on the debt is 8 percent and there are no taxes. a. Use MM Proposition I to find the price per share. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the value of the firm under each of the two proposed plans? ((Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
Answer:
a) $21.63
b) $4,433,125
Explanation:
plan I, total stocks outstanding = 205,000
plan II, total stocks outstanding = 125,000, and $1,730,000 in debt ($1,730,000 x 8% = $138,400 in interests)
under MM proposition I, a firm's total value is equal whether it uses external financing (debt) or not:
205,000P₀ = 125,000P₀ + $1,730,000
205,000P₀ - 125,000P₀ = $1,730,000
80,000P₀ = $1,730,000
P₀ = $1,730,000 / 80,000 = $21.625 = $21.63
the firm's total value = $21.625 x 205,000 = $4,433,125
Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $2.20 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:Budget Production, in bottlesYear 2:First 72,000Second 102,000Third 162,000Fourth: 112,000Year 3:First 82,000Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 43,200 grams of musk oil will be on hand to start the first quarter of Year 2.Required:
Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. (Round "Unit cost of raw materials" answers to 2 decimal places.)
Answer:
Since there is not enough room here, I used an excel spreadsheet and attached it.
Explanation:
Year 2 Year 3
First Second Third Fourth First
Budgeted prod. 72,000 102,000 162,000 112,000 82,000
in bottles
[The following information applies to the questions displayed below.] On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $318,000. The machine is expected to last five years and have a salvage value of $59,000. Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the double-declining-balance method. (Enter all amounts positive values.)
Answer:
2016= Annual depreciation= $77,700
2017= Annual depreciation= $75,620
Explanation:
Giving the following information:
Purchase price= $318,000.
Useful life= 5 years
Salvage value= $59,000
To calculate the depreciation expense, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(318,000 - 59,000)/5]= 103,600
2016:
Annual depreciation= (103,600/12)*9= 77,700
2017:
Annual depreciation= [(259,000 - 77,700)/5]*2= 75,620
The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000 divided into two departments: Fabrication, $420,000, and Assembly, $180,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 8 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 4 direct labor hours in Fabrication and 8 direct labor hours in Assembly. Each product is budgeted for 250 units of production for the year.Required:a. Determine the total number of budgeted direct labor hours for the year in each department.b. Determine the departmental factory overhead rates for both departments.c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Answer:
Fabrication, $420,000 / 3,000 = $140 per hour
Assembly, $180,000 / 3,000 = $60 per hour
speedboats
8 direct labor hours in Fabrication x 250 = 2,000 hours4 direct labor hours in Assembly x 250 = 1,000 hoursbass boats
4 direct labor hours in Fabrication x 250 = 1,000 hours8 direct labor hours in Assembly x 250 = 2,000 hoursa. Determine the total number of budgeted direct labor hours for the year in each department.
3,000 labor hours in Fabrication and 3,000 labor hours in Assembly
b. Determine the departmental factory overhead rates for both departments.
Fabrication = $140 per hour
Assembly = $60 per hour
c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
speedboats
Fabrication $1,120Assembly $240bass boats
Fabrication $560Assembly $480Andrew is injured in an accident caused primarily by the negligence of Bob. Andrew suffers $100,000 worth of harm. Bob is 70% to blame, Andrew 30%. How much will Andrew recover from Bob under the rules of a state that has adopted comparative fault?
a. $0
b. $30,000
c. $70,000
d. $100,000
Answer:
$70,000
Explanation:
From the question, it is seen that Bob is the reason for this accident so he is the to bear a cost of treating Andrew based on comparative fault.
He contributed greatly to the accident therefore he is liable to a 70% payment of the $100000 cost of treatment.
100000 *70%
= $70000
Therefore by this law Andre will recover $70000 from him.
Julie is working on formulating a marketing plan to increase the market share of Little Debbie Snack Cakes. According to the discussion in class, which one of the following strategies would Julie find most effective as a way to increase Little Debbie's long-term market share?
a. Increase product quality
b. Increase product innovation
c. Increase advertising
d. Increase sales promotion
Answer:
Correct answer:
d. Increase sales promotion
Explanation:
For Julie who owns the Little Debbie Snacks Cakes, in order for her to increase the market share of his company, there will be need for her to increase her sales promotion. This would be through series of campaign which she could run like "Buy 2 get 1 FREE" or "A dozen order free delivery + gift" etc.
The total purchase of the products and services of the firm and the percentage that goes to the company's capital is the term definition of market share.
If the consumers buy for instance 50 chocolates, out of which the 25 are from one company, and in that case, that company holds 25% market share.
The correct option is d. Increase sales promotion
Option d. Increase sales promotion is correct because for Julie who owns the Little Debbie Snacks Cakes, in order for her to increase the market share of his company, there will be a need for her to increase her sales promotion. This would be through a series of campaigns.
Options a, b, and c are wrong because they do not the effective way to increase the sale of the products and services. The options are focusing on the other promotional and advertising activities and the efficiency and effectiveness of the product section.
To know more about the long term market share, refer to the link below:
https://brainly.com/question/7868931
Which of the following statements accurately brings out the difference between technology enthusiasts and early adopters?
A. While the customer segment in the introduction stage consists of early adopters, the customers entering the market in the growth stage are technology enthusiasts.
B. Unlike technology enthusiasts, early adopters' demand is fueled more by intuition and vision rather than technology concerns.
C. While early adopters make up the smallest market segment, technology enthusiasts make up the mass market.
D. Firms need to communicate products' potential applications in a more direct way when attracting technology enthusiasts rather than early adopters.
Answer:
B. Unlike technology enthusiasts, early adopters' demand is fueled more by intuition and vision rather than technology concerns.
Explanation:
When a company is growing it attracts various types of customers that patronise their products.
The technology enthusiasts are those ones that will test a beta version of a product and make technological recommendations. They have passion for testing latest gadgets and have more knowledge of the product than the average customer.
Early adopters are those that adopt a product before most other people. They are less concerned with technology concerns, but rather are visionary.
They focus on the potential of a product and therefore promote it to other users. A trait of early adopter is that they want to stay ahead of the trend so they seek out new products.
Skysong, Inc. reports the following liabilities (in thousands) on its December 31, 2020, balance sheet and notes to the financial statements. Accounts payable $4,392.0 Mortgage payable $6,845.0 Unearned rent revenue 1,650.0 Notes payable (due in 2023) 351.0 Bonds payable 2,003.0 Salaries and wages payable 651.0 Current portion of mortgage payable 2,228.0 Notes payable (due in 2021) 2,584.0 Prepare the liabilities section of Skysong’s balance sheet as at December 31, 2020.
Answer:
Skysong, Inc.
Liabilities section
Current liabilities:
Accounts payable $4,392Salaries and wages payable $651Unearned rent revenue $1,650Mortgage payable $2,228Notes payable $2,584Total current liabilities $11,505Long term liabilities:
Mortgage payable $4,617 Notes payable (due in 2023) $351Bonds payable $2,003Total long term liabilities $6,971Total liabilities: $18,476
P&G's Vocalpoint is a group built on the premise that highly engaged individuals do not want to be bothered with learning about products.
a) true
b) false
Answer:
False
Explanation:
P&G Vocalpoint is an initiative by Procter and Gamble to promote their products through word of mouth.
In 2001 through it division Tremor 225,000 teenagers were recruited to create awareness on new products.
In December 2005, 600,000 influential mom's were recruited to promote products through word of mouth. The initiative was called Vocalpoint.
So the statement - P&G's Vocalpoint is a group built on the premise that highly engaged individuals do not want to be bothered with learning about products.
Is false
For each of the items listed below, state whether they increase or decrease the balance in cumulative translation adjustments (assuming a credit balance at the beginning of the year) when the foreign currency strengthened relative to the U.S. dollar during the year.
Net Income Dividends Declared
A. Decrease Increase
B. Increase Decrease
C. Decrease Decrease
D. Increase Increase
Answer:
Option B. Increase in Net Income and decrease in Dividends
Explanation:
The weakening position of the US dollar will make US products cheaper in the international market and thus would increase the exports of the product of the company. This will increase the net income of the company. Thus after cumulative translation adjustment what we have is increased net income.
Similarly as dividend declared would be in US dollars, when preparing a translated financial statement, the dividend declared would decrease its value as the foreign currency has strengthening position.
Beyer Company is considering the purchase of an asset for $190,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year.
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows $50,000 $31,000 $60,000 $140,000 $30,000 $311,000
Compute the payback period for this investment.
Answer:
Pay back period =3 years 4 months
Explanation:
The payback period is the estimated length of time it takes cash inflow from a project to recoup the cash outflow.
The payback period uses cash flows and not profit.
The payback period can be determined by accumulation the cash inflow consecutively to ascertain the length of time it will take the sum to equate the initial cost.
This will be done as follows:
The sum of the cash in flows for the first three years would equal
50,000 + $31,000 + $60,000 = 141,000
The balance required to equate 190,000 would be
balance = 190,000 - 140,000 = 50,000
Pay back period = 3 years + (50,000/140,000)× 12 months
= 3 years 4 months
Pay back period =3 years 4 months
Identify whether each example in the following table belongs in M1, M2, or both.
Example M1 M2
Juanita has $8,000 in a six-month certificate of deposit (CD).
Charles has a $10 bill in his wallet.
Gilberto has $3,000 in a savings account.
Answer:
Juanita has $8,000 in a six-month certificate of deposit (CD)
Conclusion: M2
Charles has a $10 bill in his wallet.
Conclusion: M1
Gilberto has $3,000 in a savings
Conclusion: M2
Definition of Terms
M1 money supply are those monies that are liquid such as cash and demand deposits.
M2 money supply are less liquid in nature and includes M1 + savings and time deposits, certificates of deposits, and money market funds.
Conclusions and recommendations are the most widely read sections of any report. Conclusions summarize a nd explain your findings and are the heart of your report. The ability to draw sound conclusions and make clear recommendations from your research is crucial to business success.
When drawing conclusions, make sure you________.
Consider the scenario:
You are making recommendations after researching and writing a report on employee vacation time and job satisfaction. What writing tips should you keep in mind when writing your recommendations?
A. Your recommendations should always be the result of prior logical analysis.
B. Your recommendations should never be in the form of a command.
C. You can combine recommendations and conclusions.
D. You should use words such as maybe and perhaps.
E. You can omit conclusions and move straight to recommendations in short reports.
Answer:
a. When drawing conclusions, make sure you summarize and explain your findings.
b. Tips for writing recommendations:
A. Your recommendations should always be the result of prior logical analysis.
B. Your recommendations should never be in the form of a command.
Explanation:
A good conclusion touches the theme or main topic, summarizes the main points, and connects with the introduction, but with a sense of closure. Conclusions should be sound and logical. Irrelevant conclusions are annoying to the senses. Without a conclusion, the report will sound like one illogical move without clear direction and purpose.
Recommendations should address improvement efforts based on the problem(s) presented in the body of the report.
On November 1, Orpheum Company accepted a $10,900, 90-day, 12% note from a customer to settle an account. What entry should be made on the November 1 to record the note acceptance
Answer:
Note Receivable $10,900 (debit)
Sales Revenue $10,900 (credit)
Explanation:
Recognize the Asset : Note Receivable and Sales Revenue to the amount of the value of the note of $10,900.
Subsequently, the Interest will accrue on the note capitalized at the rate of 12%.
Cullumber Company incurs these expenditures in purchasing a truck: cash price $26,070, accident insurance (during use) $1,780, sales taxes $1,550, motor vehicle license $320, and painting and lettering $2,050.Required:What is the cost of the truck?
Answer:
$29,720
Explanation:
Calculation for the cost of the truck of Cullumber Company
COST OF TRUCK
Purchase Price $26,070
Sales tax $1,550
Insurance during shipping $1,780
Motor vehicle license $320
Total Cost of Truck $29,720
Therefore the cost of the truck for Cullumber Company will be $29,720
Which of the following statements would best characterize someone who is not culturally competent in working with others from different cultures?a. The person varies the rate of their speaking.b. The person uses facial expressions when communicating.c. The person pays attention to verbal and non-verbal behavior.d. The person fills "silence" during conversations.
Answer: The person fills "silence" during conversations
Explanation:
Culture is simply regarded as people's way of life. The way if life include their food, the kind of music they listen to, their religion, language, their beliefs, values etc.
Someone who is not culturally competent in working with others from different cultures would usually be silent during conversations. This is because the person doesn't know much about the culture and can't really be involved in the conversation.
uring December, Rainey Equipment made a $676,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5%. Prepare the appropriate journal entry
Answer:
Please refer to the below for the appropriate journal entry
Explanation:
Accounts receivable Dr $726,700
($676,000 + $50,700)
Sales revenue account Cr $676,000
Sale taxes payable account Cr $50,700
{(6% + 1.5%) × $676,000
A firm has a debt-to-equity of 0.69 and a market-to-book ratio of 3.0. What is the ratio of the book value of debt to the market value of equity?
Answer:
0.23
Explanation:
Debt to Equity Ratio = Total debt/ Total common equity
Market to book Ratio = Market price per share / Book value per share
Book debt to Market equity Ratio = Debt to Equity Ratio / Market to book Ratio
Book debt to Market equity Ratio = 0.69 / 3
Book debt to Market equity Ratio = 0.23
Therefore, the ratio is 0.23
The Greenbriar is an all-equity firm with a total market value of $584,000 and 22,800 shares of stock outstanding. Management is considering issuing $197,000 of debt at an interest rate of 10 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares will the firm repurchase if it issues the debt securities
Answer:
7,691 stocks
Explanation:
total market value = $584,000
total outstanding stocks = 22,800
price per stock = $584,000 / 22,800 = $25.614 per stock
management can repurchase $197,000 / $25.614 per stock = 7,691.1 = 7,691 stocks
stocks outstanding after repurchase = 22,800 - 7,691 = 15,109 stocks
On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $11,700. What is the adjusting entry for the accrued interest at December 31 on the note
Answer:
Debit interest expense, $195; Credit interest payable, $195
Explanation:
The adjusting entry for the accrued interest at December 31 on the note is:
General Journal Debit Credit
Interest expense $195
($11,700 * 10% * 60/360)
Interest payable $195
Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $250,000. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7:
Year 1 $390,000
2 400,000
3 411,000
4 426,000
5 434,000
6 435,000
7 436,000
The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage value is expected to be $400,000. This new equipment would require maintenance costs of $100,000 at the end of the fifth year. The cost of capital is 9%.
Instructions
Use the net present value method to determine whether Hillsong should purchase the new machine to replace the existing machine, and state the reason for your conclus
Answer:
NPV = 37,599 Negative
Explanation:
We can calculate the NPV of the new sewing machine by deducting the Present value of future cash inflows by Investment
Initial investment = Machine cost + Training cost - Salvage value
Initial investment = 2,450,000 + 85,000 - 250,000
Initial investment = 2,285,000
Year DF(9%) Present Value
1 Cash inflow 390,000 x 0.917 $357,798
2 Cash inflow 400,000 x 0.842 $336,672
3 Cash inflow 411,000 x 0.772 $317,367
4 Cash inflow 426,000 x 0.708 $301,789
5 Cash inflow 334,100 x 0.650 $217,077 (434,100 - 100,000)
6 Cash inflow 435,000 x 0.596 $259,376
7 Cash inflow 436,000 x 0.547 $238,507
7 Salvage value 400,000 x 0.547 $218,814
Present Value of cash inflow $2,247,401
Initial investment $2,285,000
NPV ($2,247,401 - $2,285,000) (37,599)
Conclusion: Hillsong should not purchase the new machine as the NPV of the machine is negative
