Cost Management
Cost Management
8th Edition
ISBN: 9781259917028
Author: BLOCHER, Edward
Publisher: Mcgraw-hill Education,
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Chapter 16, Problem 15Q
To determine

Explain the difference between the sales quantity variance and a sales volume variance.

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Explain the importance of the company having long-term debt on its balance sheet. Include the following details in your response: Explain the characteristics of notes payable and bonds payable. Explain how long-term debt impacts the financial statements? Explain the alternative accounting methods for situations relating to long-term liabilities and equity. Include the following details in your response: Why would a bond sell at a different price than the face amount? What are the two methods of amortizing premium and discount? Explain the importance of the company having equity on its balance sheet. Consider the following questions to guide your response: How do companies obtain common stock? Describe the purpose and structure of additional paid-in capital. How do dividends paid or dividends payable impact the equity and income statement? Explain the importance of cash flow in the overall financial health of the organization. Explain how cash flow data connects to the income…
Prepare Journal entries January 22: Issued $75,000 of 6% term bonds due on January 1, 2025 (10 periods) with interest payable each June 30 and December 31. Investors require an effective interest rate of 8%. Record the entries for issuance of the bond.   February 28: A new long-term lease is entered into for extra storage space for the new product line of ink cartridges. The net present value of the future lease payments is $120,400. The lease is for two years at $5,000 per month beginning March 1.   March 6: A long-term note for $60,000 was taken out from the bank. The loan is for two years with an interest rate of 6% repayable at maturity.   April 22: New equipment was purchased to make printers for $55,000. Use straight line depreciation assuming a 4-year life, with no residual value. Use full year’s depreciation for the first year.   April 17: 200 shares of common stock with a $1 par value were sold for $20 per share.   May 5: Paid cash dividends to stockholders of $22,500.   June…
For calculating ROIC (return on invested capital), where is the $10,794 debt coming from? I'm getting a different number. Cabn please breakdown this entire section?
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