What amount of development cost should Headway Company capitalize in 2024? a. 2,200,000 b. 5,700,000 c. 6,000,000 d. 7,500,000
Q: What is the 2021 pension expense?
A: Pension expense (PE) refers to those expenses which are charged by the company in relation to pay…
Q: x Bb Microso X (26) JA X Blackbo X Content X WP NWP As X NWP As X Content X WP NWP As X…
A:
Q: How much is the cumulative effect of this change that should be reported in the income statement for…
A: The question is related to Change in Accounting Policy. Accounting Policy are the principles and…
Q: Using data in 1 and 3, how much is the capital balance of Elizabeth after the retirement of Hugo?…
A: Retirement of a partner could be defined as the removal of a member from the partnership with the…
Q: 3. There are three resource types available for a certain project. One unit of each resource type is…
A: Project resource management is a technique in which the resources are allocated towards various work…
Q: The balance in the supplies account before adjustment on December 31, 2007 is $3,000. The amount of…
A: The supplies expense for the period = supplies account before adjustment on December 31, 2007 -…
Q: Toll wing (a) Value of output at MP (b) GVA (C) NVA (d) NVA (e) Income generated Items (Rs. in…
A: 1) Value output = sales + change in stock 2) GVA (MP) = value of output - intermediate consumption…
Q: Abra Ltd sold an item of plant to its subsidiary Cadabra Ltd on 1 January 2017 for $50 000. The…
A: Consolidation elimination entries are those entries which are used to remove from the consolidation…
Q: The answer provided is not correct, please provide the correct value
A: Free Cash Flow Free Cash flow which can be determined by using the amount of net operating cash flow…
Q: CARMINE Company is preparing the interim financial statements for the first quarter ended March 31,…
A: Note: It is given in the question that, advertising expense will be incurred evenly during 2022, so…
Q: 3. If the Carolina Hurricanes Owner were to suddenly shut down the PNC Arena, would he be better or…
A: Introduction: Operating expenses are expenditures directly connected to day-to-day company activity,…
Q: 100,000 150,000 340,000 110,000 80,000 200,000 100,000 300,000 100,000 80,000
A: The balance sheet is given as,
Q: which of the following doctrine or theory is called the doctrine of symbiotic relationship
A: The answer for the multiple choice question and relevant explanation are presented hereunder : The…
Q: INCOME STATEMENTS Net sales COGS (excl. depr.) Depreciation Other operating expenses EBIT Interest…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: At the beginning of current year, BLACKPINK Company had 480,000 $60 par value ordinary shares and…
A: Diluted earnings per share (Diluted EPS) : Diluted EPS is the company's earnings per share if all…
Q: What are liabilities that will be due within a short time (usually one year or less) and that are to…
A: Today we are going to discuss the three primary types of liabilities which include: short-term…
Q: ABC Corp showed the following information: Beginning inventory, 60,000 Purchases, 500,000 Purchase…
A: Cost of goods sold equals sum total of beginning inventory and purchases less the ending inventory ,…
Q: Refer to Value Pro. In the upcoming year, Value Pro estimates that it will produce and sell 4,000…
A: Margin of safety: Margin of safety is the point after which profit will be happen in multiple of…
Q: INCOME STATEMENTS Net sales COGS (excl. depr.) Depreciation Other operating expenses EBIT Interest…
A: The debt to total assets ratio is calculated by dividing the total Outside Liabilities by the value…
Q: Venus corp has the following income statement for the year 2020 Gross sales Sales return Sales…
A: Solution: Net income before tax = P25,000 Interest expense = P30,000 Earnings before interest and…
Q: Which of the following inherent limitations of the power of taxation is violated by the imposition…
A: Tax is collected by the government from the imposed taxes which has been imposed by the central…
Q: Villi Manufacturing Corporation's most recent sales budget indicates the following expected sales…
A: Formulas: Expected no. of units produced = Expected unit sales + Desired ending inventory -…
Q: he balance in the supplies account before adjustment on December 31, 2007 is $3,000. The amount of…
A: Supplies are generally papers, pens clips etc which are maintained in office for immediate use and…
Q: The trial balance prepared after all the adjusting entries have been posted is called what? Group of…
A: An adjusted trial balance is a listing of the ending balances in all accounts after adjusting…
Q: What kind of assets are cash and other assets that are expected to be converted to cash or sold or…
A: Current assetsCash Other assets those which are expected to be consumed or sold within a year or…
Q: Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a…
A: We should deduct outstanding checks from cash Balance according to bank to get Adjusted balance.
Q: The fair value of the option on 1 January 2016 was RM5 each and was estimated to rise to RM6.50…
A: It is an employees compensation scheme of employees stock option plan by passing a resolution as per…
Q: A company plans to tighten its credit policy. The new policy will decrease the average number of…
A: In a credit policy if the collection period is reduced, the turnover of the business and accounts…
Q: 4) Someone invests a constant stream of $1,000 per year at a continuously compounding interest rate…
A: Compound Interest accrues interest on interest. Continuous Compounding is used to when interest is…
Q: Carla Vista Company is considering two alternatives. Alternative A will have revenues of $148.000…
A: Lets understand the basics. When there are two alternatives then management tries to choose…
Q: On January 1, 2016, Pedro Reyes invested PHP250,000 on a delivery van. The car is expected to last…
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…
Q: E2.38 (LO 4) Corbin Manufacturing Company produces blankets. From its accounting records, it…
A: Cost of goods manufactured will include the cost of raw material consumed , direct labor and…
Q: ou have 3 accounts: Account A has a $100 balance and a $300 credit limit. Account B has a $100…
A: Credit Limit - Credit Limit is the maximum amount one can borrowed as per the credit score of the…
Q: What are revenues that have been earned but not recorded in the accounts called? Group of answer…
A: Deferred revenue, also known as unearned revenue, refers to advance payments a company receives for…
Q: Chevrolet Corporation is considering replacing an obsolete machine with a new machine. The new…
A: Formula: Simple rate of return = Net Annual savings in costs / Net initial investment where, Net…
Q: In January 2013, Edi Thomas and George Lopez agreed to produce and sell chocolate candies under the…
A: Given that, Contribution by thomas ; Cash = P580,000 Contribution by lopez ; Building = P480,000…
Q: The following information relates to financial projections of Folk Company: Projected sales…
A: Degree of operating leverage (DOL): DOL reflects variable and fixed cost relationship of an…
Q: On March 31, 2021: Job #678 was the only job in process with accumulated costs of…
A: Finished Goods Inventory refers to Cost of Goods completed during the year from Production but not…
Q: Read each problem carefully and choose the CORRECT answer among the choices. PROBLEM: At the start…
A: Opening balance of land = P2,200,000 land purchased = P1,600,000 Real estate agent charges =…
Q: In 2021, Southwestern Corporation completed the treasury stock transactions listed below. February…
A: Treasury stock refers to the stock reacquired by the company and company pays cash to acquired these…
Q: On January 1, 2018, CRIMSON Company purchased machineries for P10,560,000 and depreciated it by the…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: res and 100,000, 10% 100 par value convertible cumulative preference shares are convertible into…
A: Solution :-
Q: Bond carries a part that is popular in the manufacture of automatic sprayers. Demand for this part…
A: Economic order quantity is a method that provides the number of units to be ordered for getting the…
Q: Rodriguez Corporation issues 9,000 shares of its common stock for $177,100 cash on February 20.…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: BLACK WIDOW Corporation failed to recognize accruals and prepayments since the inception of its…
A: The income statement shows the net income or net loss that is calculated by deducting the expenses…
Q: On January 1, 2020, Blossom Corporation had 106,000 shares of no-par common stock issued. 5,000…
A: Cash dividend = Number of shares outstanding × Dividend per share = (106000-5000+10000) ×$1 = 111000…
Q: 6. What is the depreciation expense for the year ended December 31, 2021?
A: Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…
Q: 10.) How much is Accumulated Depreciation per year? 11.) How long is the estimated useful life of…
A: Straight line depreciation is a common method of depreciation where the value of a fixed asset is…
Q: Business transaction Jan 1 started business with RM 12000 cash. 2 Purchased furniture worth RM 5000…
A: Journal- Journalizing is the process by which businesses record their transactions in a systematic…
Q: CARMINE Company is preparing the interim financial statements for the first quarter ended March 31,…
A: Variable expense = Expenses in first quarter ×25% = P10,000,000 ×25% = P2500000 Fixed expense =…
2024:
Project A. Expected total revenues P7,000,000, starting in early 2023. Expected total costs,will
be P5,000,000. Costs incurred to date, all in 2014, are P2,200,000.
Project B. Expected total revenues P6,000,000. Costs incurred to date are P3,500,000.
Expected total costs are P4,500,000. The commencement of commercial sales is uncertain due
to problems in raising funds to cover the final development costs.
Project C. Expected total revenues, P3,500,000 with P1,000,000 of revenue already earned in
2024. Total development costs incurred, all in 2024, were P3,800,000.
Research projects. Total costs spend in 2024 were P I,500,000.
What amount of development cost should Headway Company capitalize in 2024?
Step by step
Solved in 2 steps
- Athenian Venues Inc. just reported the following selected portion of its financial statements for the end of 2020. Your assistant has already calculated the 2020 end-of-year net operating working capital (NOWC) from the full set of financial statements (not shown here), which is 13 million. The total net operating capital for 2019 was 50 million. What was the 2020 net investment in operating capital? Athenian Venues Inc.: Selected Balance Sheet Information as of December 31 (Millions of Dollars)) McGloire Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Lori Alleyne, staff analyst at McGloire’s, is preparing an analysis of the three projects under consideration by Joyanne McGloire, the company’s owner.A B C D1 Project A Project B Project C2 Projected cash outflow3 Net initial investment $3 000 000 $1 500 000 $4 000 00045 Projected cash inflows6 Year 1 $1 000 000 $ 400 000 $2 000 0007 Year 2 1 000 000 900 000 2 000 0008 Year 3 1 000 000 800 000 200 0009 Year 4 1 000 000 100 0001011 Required rate of return 10% 10% 10%1. Because the company’s cash is limited, McGloire thinks the paybackmethod should be used to choose between the capital budgeting projects.a. List two benefits and two limitations of using the payback method to choose between projects? b. Calculate the payback period for each of the three projects. Ignore income taxes. Using the payback method,…ABC Construction Company began work on a contract in 2022 and completed the contract in 2023. The total contact price was P8,500,000. Information related to the construction project are as follows: 2022 2023 Costs incurred during the year P1,200,000 P6,250,000 Estimated costs to complete 4,800,000 - Progress billings during the year 1,450,000 7,050,000 Collections during the year 800,000 6,000,000 How much is the gross profit to be recognized in 2023?
- Romanos Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Laura Berenstein, staff analyst at Romanos, is preparing an analysis of the three projects under consideration by Chester Romanos, the company's owner. Data Table A B C D 1 Project A Project B Project C 2 Projected cash outflow 3 Net initial investment $3,000,000 $2,100,000 $3,000,000 4 Projected cash inflows 5 Year 1 $1,200,000 $1,200,000 $1,700,000 6 Year 2 1,200,000 600,000 1,700,000 7 Year 3 1,200,000 500,000 200,000 8 Year 4 1,200,000 100,000 9 Required rate of return 10% 10% 10% 1. Because the company's cash is limited, Romanos thinks the payback method should be used to choose between the capital budgeting projects. a. What are the…McGloire Construction is analyzing its capital expenditure proposals for thepurchase of equipment in the coming year. The capital budget is limited to $5,000,000 for theyear. Lori Alleyne, staff analyst at McGloire’s, is preparing an analysis of the three projectsunder consideration by Joyanne McGloire, the company’s owner. A B C D 1 Project A Project B Project C 2 Projected cash outflow 3 Net initial investment $3 000 000 $1 500 000 $4 000 000 4 5 Projected cash inflows 6 Year 1 $1 000 000 $400 000 $2 000 000 7 Year 2 1 000 000 900 000 2 000 000 8 Year 3 1 000 000 800 000 200 000 9 Year 4 1 000 000 100 000 10 11 Required rate of return 10% 10% 10% 1. Because the company’s cash is limited, McGloire thinks the payback methodshould be used to choose between the capital budgeting projects.a. List two benefits and two limitations of using the payback method to choosebetween projects? b. Calculate the payback…[2] In May 2021, Oliver Queen Company began work on a project that has a contact price of P5,000,000. Any costs incurred are expected to be recoverable. Progress billing, collections are of equal amount with costs incurred. 2021 2022 Cost incurred to date 1,125,000 3,825,000 Estimated cost to complete 3,375,000 1,275,000 Total estimated cost 4,500,000 5,100,000 In its income statement for the year 2022, the company would recognize a gross profit of (1) under percentage of completion method; (2) under cost recovery method: 225,000; (75,000) (200,000); zero (225,000); (100,000) (225,000); zero
- Halls Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Laura Bentley, staff analyst at Halls, is preparing an analysis of the three projects under consideration by Caden Halls, the company's owner. Data Table A B C D 1 Project A Project B Project C 2 Projected cash outflow 3 Net initial investment $3,000,000 $2,100,000 $3,000,000 4 Projected cash inflows 5 Year 1 $1,200,000 $1,200,000 $1,700,000 6 Year 2 1,200,000 600,000 1,700,000 7 Year 3 1,200,000 500,000 200,000 8 Year 4 1,200,000 100,000 9 Required rate of return 6% 6% 6 1.. Calculate the payback period for each of the three projects. Ignore income taxes. Using the payback method, which projects should Halls choose?. Ignore income taxes. (Round your answers to…The Riverside Company is evaluating two mutually exclusive assets: Black and White, at the end of 2020. The firm’s weighted average cost of capital is 8%. Data for each project are as follows: Black White Cost of investment—end 2020 25,000 Cost of investment—end 2020 $43,000 Cash inflow—2021 8,000 Cash inflow—2021 20,000 Cash inflow—2022 8,000 Cash inflow—2022 30,000 Cash inflow—2023 8,000 Cash inflow—2023 10,000 Cash inflow—2024 8,000 Cash inflow—2024 0 Cash inflow—2025 8,000 Cash inflow—2025 0 Requirements: Compute the net present value for each asset using Excel's NPV function. Determine which project the Riverside Company should invest in based on NPV. Compute the profitability index for each project. Determine which project the Riverside Company should invest in based on the profitability index. Should the firm invest in the Black or White project? What is the basis for your choice?…The Riverside Company is evaluating two mutually exclusive assets: Black and White, at the end of 2020. The firm’s weighted average cost of capital is 8%. Data for each project are as follows: Black White Cost of investment—end 2020 25,000 Cost of investment—end 2020 $43,000 Cash inflow—2021 8,000 Cash inflow—2021 20,000 Cash inflow—2022 8,000 Cash inflow—2022 30,000 Cash inflow—2023 8,000 Cash inflow—2023 10,000 Cash inflow—2024 8,000 Cash inflow—2024 0 Cash inflow—2025 8,000 Cash inflow—2025 0 Requirements: Compute the net present value for each asset using Excel's NPV function. Determine which project the Riverside Company should invest in based on NPV. Compute the profitability index for each project. Determine which project the Riverside Company should invest in based on the profitability index. Should the firm invest in the Black or White project? What is the basis for your choice?
- Revenues generated by a new fad product are forecast as follows: Year Revenues 1 60,000 2 40,000 3 30,000 4 10,000 Thereafter 0 Expenses are expected to be 30% of revenues, and working capital required in each year is expected to be 10% of revenues in the following year. The product requires an immediate investment of $81,000 in plant and equipment. a). What is the inital investment in the product? Rememebr working capital. b).If the plant and equipment are depreciated over 4 years to a slavage value of zero using straight-line depreciation, and the firm's tax rate is 20%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years. c). If the opportunity cost of capital is 10%, what is the project's NPV? d). What is the project IRR?Assoria Plc has $20 million of capitalised development expenditure at cost brought forward at 1 October 2022 in respect of products currently in production. A new project began on 1 October 2022. The research stage of the new project lasted until 31 December 2022 and incurred $1.4 million of costs. From that date the project incurred development costs of $800,000 per month. On 1 April 2023 the directors of Assoria Co became confident that the project would be successful and yield a profit well in excess of costs. The project was still in development at 30 September 2023. Capitalised development expenditure is amortised at 20% per annum using the straight-line method. What amount will be charged to profit or loss for the year ended 30 September 2023 in respect of research and development costs?Micropolis Technology began a new development project in 2020. The project reached technological feasibility on September 1, 2021, and was available for release to customers at the beginning of 2022. Development costs incurred prior to September 1, 2021, were $4,560,000, and costs incurred from June 30 to the product release date were $1,920,000. The 2022 revenues from the sale of the new software were $3,950,000, and the company anticipates additional revenues of $11,850,000. The economic life of the software is estimated at three years. Amortization of the software development costs for the year 2022 would be:
