stems from the B/C ra
Q: On January 1, Kale Company has a beginning cash balance of $42,000. During the year, the company…
A: Amount to be borrowed = Desired ending cash balance - Amounts available where, Amounts available =…
Q: E9-17 (Algo) Computing a Present Value Involving an Annuity and a Single Payment LO 9-7 You have…
A: Present value = (PMT*(1-(1+r)^-n)/r) + (FV*(1+r)^-n)
Q: when real estate agents sell their own, rather than cllents', houses, they leave the houses on the…
A:
Q: Your company uses an activity-based costing system for its overhead costs. The following data is…
A: Introduction:- Activity based costing used allocate overhead costs to products in a more logical…
Q: wing is a summary of Jane’s bank account for the year ended 31 December 2021:…
A: Calculation of Sales Calculation of Purchase Income Statement for the year ending 31 dec, 2021…
Q: Your Company uses a predetermined overhead rate based on machine hours to apply manufacturing…
A: Formula: Predetermined overhead rate = Total estimated manufacturing overhead cost/ Budgeted direct…
Q: If the materials price variance is $3,600 F and the materials quantity and labor variances are each…
A: Description: Total materials variance: Sum of both Materials price variance and Materials quantity…
Q: Taylor Bank lends Guarantee Company $112,834 on January 1. Guarantee Company signs a $112,834, 10%,…
A: Cash received on issue of note = $112,834
Q: rchase ay interest of 10% every June 30 and December 31 ue of the bonds at year-end are presented…
A: Transaction costs or the bond issue costs are the expenses that are incurred by the company for…
Q: What is gross operating income over the next year to the nearest dollar for an apartment building…
A: The gross operating Income will be gross amount to be collected less the amount of allowance for…
Q: gestions per employee increases, then the non-value-added activity costs should decrease.
A: To explain the correct option as.
Q: KEEP OR DROP A SEGMENT 4. BABY DRAGON MERCHANDISING COMPANY has products, A and B. A recent monthly…
A: e) Calculation of effect on income with change in strategy Product B Sales Revenue…
Q: Last month when Gifted by Design, Inc. sold 30,000 units, total sales were $600,000, total variable…
A: Contribution is determined by deducting all the variable cost from the sales related to the product.…
Q: Under SSARS the hierarchy in terms of the level of service provided and degree of comfort the…
A: SSARS is an acronym which stands for the statements on standards for accounting and review services,…
Q: Shep Company combines its operating expenses for budget purposes in a selling and administrative…
A: Selling Commission = 20,000 units X $ 30 per unit X 6% Selling Commission = $ 36,000 Delivery…
Q: Assuming a 360-day year, when a $15,586, 90-day, 7% interest-bearing note payable matures, total…
A: 15586 + 15586*90/360*7% = 15859
Q: What is the relationship between the external auditor and the organization. What steps have been…
A: An external auditor is the person or firm who verify the financial statements of the organization…
Q: A retailer anticipates selling 4,050 units of its product at a uniform rate over the next year. Each…
A: Economic order quantity is the optimal quantity to be ordered to minimize the total cost.
Q: Month Budgeted Sales January $ 76,000 February 85,000 March 92,000 April 79,000 Budgeted Selling and…
A: The production budgets are prepared to estimate the number of units to be purchased during the…
Q: Discuss the potential for abuse and fraud in this system. Describe the controls that should be…
A: Procurement and safeguarding of Assets are very important factor or process of an organisation.…
Q: Ferrante Company sells 90,000 units at $60 per unit. Variable costs are $42 per unit, and fixed…
A: A corporation's contribution margin is the percentage change in revenue and variable expenses. An…
Q: Morrison Company sells 124,000 units at $16 per unit. Variable costs are $12 per unit, and fixed…
A: Contribution margin ratio = Contribution margin per unit/selling price per unit Contribution…
Q: Question 3 As at 1 Feb 2020, Aleena Trading had a balance of RM 2,330 in the allowance for doubtful…
A: Bad Debts recovered : Sometimes it appears that the amount from debtors will not be received and Co.…
Q: Bonds Payable has a balance of $951,000 and Discount on Bonds Payable has a balance of $11,412. If…
A: Introduction:- The following basic information as follows under:- Bonds Payable has a balance of…
Q: Do b)
A: Disposal of Asset Account Format /Template Asset Disposal Account Date Account Name Debit…
Q: Sylvestor Systems borrows $126,000 cash on May 15 by signing a 90-day, 5%, $126,000 note. 1. On…
A: Payment of the note at Maturity = Face value of the Notes + Interest on Notes where, Interest on…
Q: Question 1 Vandelay Industries has been manufacturing its own touch screens for its cellular phones.…
A: Given: - manufacturing overhead= 55% of 5.90 direct material= $3.90 direct labor= $5.90 normal…
Q: Edwards Corporation used the following data to evaluate their current operating system. The company…
A: In calculation of Static Budget variance of Revenues, the Budgeted revenues are compared with Actual…
Q: Management accounting and financial accounting differ in that management [1 accounting information…
A: Management Accounting Management Accounting which are used for the internal activities of the…
Q: Gagnon Company reported the following sales and quality costs for the past four years. Assume that…
A: The quality cost for all four years as, Year Quality cost 1 $20,000,000*0.25 $5,000,000 2…
Q: A $375,000 bond issue on which there is an unamortized discount of $40,000 is redeemed for $320,000.…
A: Formula: Gain (loss) on bonds redemption = Face value of bonds - Redemption value - Unamortized…
Q: Question 1 Yellow Trading sells various brands of lamps and lights. The following is the trial…
A: Financial statement means the statement which include the income statement and the balance sheet.…
Q: Purvis Manufacturing, which produces a single product, has prepared the following standard cost…
A: The variance is the difference between standard data of production and actual costs incurred for…
Q: Your Company uses activity-based costing and has estimated its costs for next year in the table…
A: The activity based costing is used to apply the overheads to the production on the basis of…
Q: What is gross operating income over the next year to the nearest dollar for an apartment building…
A: The gross operating Income will be gross amount to be collected less the amount of allowance for…
Q: Money market deposit accounts (MMDAS) O a. have floating maturity dates. O b. are federally insured.…
A: 1. a. have floating maturity dates. 2 d. allow check writing privileges above a stipulated minimum…
Q: Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance…
A: Solution... Standard quantity used = 2.60 pounds Allowances for wastage = 0.30 pounds…
Q: The following is not an exchange where public company stocks are listed for trading: Answers:…
A: Solution :- Wall Street Journal All Three NASDAQ, NYSE, Pink Streets are stock exchanges where…
Q: a. Imelda Company budgets sales of $1,800,000, fixed costs of $394,000, and variable costs of…
A: Contribution margin ratio = (Total contribution/sales) ×100
Q: Yusuf Company sells a product for $220 per unit. The variable cost is $170 per unit, and fixed costs…
A: Break even point in sales units = Fixed cost/Contribution margin per unit Contribution margin per…
Q: Bonds Payable has a balance of $1,137,000 and Discount on Bonds Payable has a balance of $13,644. If…
A: Bonds: Bonds is a long-term liability of a company where it has to repay the principal amount along…
Q: (Ignore income taxes in this problem) Your Corporation is considering the purchase of a machine that…
A: The internal rate of return (IRR) is a discounting cash flow technique which gives a rate of return…
Q: Equipment was acquired at the beginning of the year at a cost of $76,920. The equipment was…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: On the break-even chart you can see the three variants of the break-even points. Name the items…
A: The breakeven chart is one which shows the total revenue equals the total cost incurred by the…
Q: Sunshine Corporation's contribution format income statement for October is shown below. $228,000…
A: Working Note: Current selling price = Sales / No. of units = $228,000/24,000 = $9.50 per unit
Q: The following data are available for the Firempong Corporation for a recent month: Product 1 Product…
A: Break-even point = Fixed costs /Weighted Average Contribution margin per unit where, Contribution…
Q: . How much of these pools?
A: Given as, Plant manager's salary= $150, 000 and Depreciation= $65, 000.
Q: The following items are reported on a company's balance sheet: Cash $120,000 Marketable securities…
A: Current Ratio = Current Assets / Current Liabilities = (120000 + 40000 +…
Q: Edwards Corporation used the following data to evaluate their current operating system. The company…
A: Description: Static budget variance of variable costs: Deduction of Budgeted Variable costs from…
Q: Sloan Corporation has the following estimates for its new gear assembly product: Price per unit =…
A: There are many factors which effect the profitability of the company. Every company estimates its…
True or False
The concept of individual projects stems from the B/C ratio each project has to offer. Once it is feasible (i.e., BC >
1), MEAs are born.
Step by step
Solved in 2 steps
- Answer this question as it is pertaining to two MUTUALLY EXCLUSIVE projects on the following figure. Given r=6%, which project would you choose if you decide to use the internal rate of return (IRR) as the criterion? Group of answer choices Project A Project B Neither EitherIf a particular project has multiples rates of return (i.e., multiple values of IRR), it means that the project is economically more attractive as compared with a project with a single IRR. Group of answer choices True FalseYou should accept a project when the ?: net present value is negative. profitability index is positive. payback period exceeds the required period. AAR is greater than the required return. 7. Which one of the following statements is correct? The payback period is also referred to as the benefit-cost ratio. The internal rate of return can be reliably used for all independent projects. The profitability index is used when the investment funds are limited. The net present value should not be used to rank mutually exclusive projects. 8. You should accept a project when the ?: net present value is negative. profitability index is less than 1 but greater than 0. discounted payback period is less than the required period. AAR is less than the required return. 9. The crossover point ? : is used to determine which one of two internal rates of return for a project should be used when determining if a project should be accepted. 2. is the…
- a. Calculate the projects’ NPVs, IRRs, MIRRs, regular paybacks, and discounted paybacks.b. If the two projects are independent, which project(s) should be chosen?c. If the two projects are mutually exclusive and the WACC is 10%, which project(s)should be chosen?d. Plot NPV profiles for the two projects. Identify the projects’ IRRs on the graph.e. If the WACC was 5%, would this change your recommendation if the projects weremutually exclusive? If the WACC was 15%, would this change your recommendation?Explain your answers.f. The crossover rate is 13.5252%. Explain what this rate is and how it affects the choicebetween mutually exclusive projects.g. Is it possible for conflicts to exist between the NPV and the IRR when independentprojects are being evaluated? Explain your answer.h. Now look at the regular and discounted paybacks. Which project looks better whenjudged by the paybacks?i. If the payback was the only method a firm used to accept or reject projects, what paybackshould it…Which of the following statement is correct Select one: a. A project is accepted when profitability index will be greater than one b. All statements are correct c. A project is accepted when net present value is greater than zero d. A project is accepted when payback period is less than the other projectWhen two mutually exclusive projects are being compared, explain whythe short-term project might be ranked higher under the NPV criterion ifthe cost of capital is high, whereas the long-term project might be deemedbetter if the cost of capital is low. Would changes in the cost of capital evercause a change in the IRR ranking of two such projects? Why or why not?
- Answer this question as it is pertaining to two MUTUALLY EXCLUSIVE projects on the following figure. If r=6%, which project would you choose by using the net present value (NPV) as the criterion? Group of answer choices Project A Project B Neither EitherPlease no written by hand solution When evaluating non-mutually exclusive projects from an economic perspective, the Internal Rate of Return (IRR) is a more appropriate metric than the Benefit-Cost Ratio (BCR) for ranking projects. Using an example, evaluate whether this statement is true or false. Include your example in your spreadsheet. Limit your answer to a maximum of 100 words.A firm evaluates all of its projects by applying the IRR rule. a. What is the project's IRR? (Do not round intermediate caluclations) b. If the required return is 15%, should the firm accpet the project? Please help me solve this in excel.
- 29....When using the NPV method the decision making rationale includes the following (select all that apply): a.If projects are mutually exclusive, accept the project with the highest positive NPV. b.If projects are independent, accept if the project NPV<0. c.If projects are independent, accept if the project NPV>0 d.If the projects are mutually exclusive, accept the project with lowest NPV.The following information on two mutually exclusive projects is given below: Which of the following statements is correct?(a) Since the two projects have the same rate of return, they are indifferent.(b) Project A would be a better choice because the required investment is smaller with the same rate of return.(c) Project B would be a better choice as long as the investor's MARR is lessthan 25%.(d) Project Bis a better choice regardless of the investor's MARR.Consider the mutually exclusive alternatives in the shown table. Which alternative would be chosen according to these decision criteria?Solve, a. Maximum benefit b. Minimum cost c. Maximum benefits minus costs d. Largest investment having an incremental B–C ratio larger than one e. Largest B–C ratio Which project should be chosen?