Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $400,000 $600,000 Annual net income 30,000 46,000 Net annual cash inflow 110,000 146,000 Estimated useful life 5 years 6 years Salvage value -0- -0- The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 5 3.890 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111 "The net present value for Project Nuts" is Group of answer choices

Answers

Answer 1

Answer:

NPV = $35,868.06

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

NPV for Project Nuts

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-600,000

Cash flow each year from year 1 to 6 = 146,000

I = 10%

NPV = $35,868.06

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  


Related Questions

Budgeted variable overhead for the year is $150,000. Expected activity is 30,000 standard direct labor hours. The actual hours worked were 15,000 and the standard hours allowed for actual production were 18,000. The variable overhead efficiency variance is:

Answers

Answer:

-$15,000 favorable variance

Explanation:

variable overhead efficiency variance = standard overhead rate x (actual hours - standard hours)

standard variable overhead rate = $150,000 / 30,000 = $5actual hours 15,000standard hours 18,000

variable overhead efficiency variance = $5 x (15,000 - 18,000) = $5 x (-3,000) = -$15,000 favorable variance

12.The competitive strategy of a firm pursuing a "think global, act local" approach to strategy-making A. entails little or no strategy coordination across countries. B. usually involves cross-subsidizing the prices in those markets where there are significant country-to-country differences in the product attributes that customers are most interested in. C. involves selling a mostly standardized product worldwide, but varying a company's use of distribution channels and marketing approaches to accommodate local market conditions. D. is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions. E. involves having strongly differentiated product versionsfor different countries and selling them under distinctly different brand names (one for each country or group of neighboring countries) so that there will be no doubt in customers' minds that the product is more local than global.

Answers

Answer:

D. is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions.

Explanation:

A think global act local is a strategic business approach or concept which is aimed at achieving a low cost, effective cost, efficiency and focused strategy theme in all the locations where the firm has its operations but nonetheless avails local managers the opportunity and ability to adjust product

specifications, distribution and marketing channels to better satisfy local consumers, as well as effectively and efficiently match local market conditions.

Hence, the competitive strategy of a firm pursuing a "think global, act local" approach to strategy-making is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions.

Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sales for the year are $695,000 and cost of goods sold is 40% of sales. The expected selling expenses are $77,500 and the expected general and administrative expenses are $86,500, which includes $19,500 of depreciation. The company's income tax rate is 30%. The budgeted net income for 2018 is:

Answers

Answer:

Calgary Industries

Budgeted Net Income for 2018:

Sales Revenue                                     $695,000

Cost of goods sold                               $278,000

Gross profit                                            $417,000

Selling expenses                                    $77,500

General and Administrative expenses $67,000

Depreciation                                           $19,500

Budgeted Pre-tax Income                  $253,000

Income tax rate (30%)                             75,900

Budgeted Net Income                          $177,100

Explanation:

a) Data and Calculations:

Estimates:

Sales = $695,000

Cost of goods sold = 40% of sales = $695,000 * 40% = $278,000

Selling expenses = $77,500

General and Administrative expenses = $86,500 - $19,500 = $67,000

Depreciation = $19,500

Income tax rate = 30%

b) Calgary Industries' budgeted net income of $177,100 is the result of deducting the operating expenses and income tax from the gross profit.  The gross profit of $417,000 is obtained by deducting the cost of goods sold from the Sales Revenue.  These profit points explain the economic returns created by the Calgary Industries.  They reflect its financial performance during the budgeted period.

The total factory overhead for Bardot Marine Company is budgeted for the year at $367,500. Bardot Marine manufactures two types of boats: speed boats and bass boats. The speedboat and bass boat each require three direct labor hours for manufacture. Each product is budgeted for 5,000 units of production for the year.
When required, round all per unit answers to the nearest cent.
A. Determine the total number of budgeted direct labor hours for the year in each department.
Fabrication direct labor hours
Assembly direct labor hours
B. Determine the departmental factory overhead rates for both departments.
Fabrication $ per dlh
Assembly $ per dlh
C. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Speedboat: $ per unit
Bass boat: $ per unit

Answers

Question Completion:

The speed boat requires 2 hours in fabrication and 1 hour in assembly.  The bass boat requires 1 hour in fabrication and 2 hours in assembly.

Answer:

Bardot Marine Company

A. Determination of the total number of budgeted direct labor hours in each department:

                             Speed boats    Bass boats   Total hours

Direct labor hours:

Fabrication                10,000           5,000           15,000

Assembly                   5,000          10,000           15,000

Total                         15,000          15,000           30,000

B. Determination of the departmental factory overhead rates for both departments:

Overhead rate = $367,500/30,000 = $12.25

Fabrication $ per dlh  = $12.25

Assembly $ per dlh = $12.25

C. Determination of the factory overhead allocated per unit for each product using the department factory overhead allocation rates:

Speedboat: $ per unit  = $36.75 ($12.25 x 3)

Bass boat: $ per unit =   $36.75 ($12.25 x 3)

Explanation:

a) Data and Calculations:

Total factory overhead = $367,500

                                   Speed Boats        Bass Boats

Budgeted units                5,000                5,000

Hours per unit                   3                         3

Total direct labor hour   15,000              15,000

Fabrication                        2 hrs                   1 hr    

Assembly                           1 hr                    2 hrs

Total direct labour hours:

Fabrication                   10,000                 5,000

Assembly                      5,000                 10,000

Historically the stock market goes up when there is bad news on unemployment. The latest statistics show the unemployment rate is skyrocketing so this could be a good time to buy stocks.

The arguments target is:

A. Bad news on unemployment
B. The stock market in the past when there is bad news on unemployment
C. The stock market now

Answers

Answer: C. The stock market now

Explanation:

The Argument target refers to the subject of the discussion in question. The speaker in question is attempting to explain why it would be a good time to buy stocks in the present which concerns the stock market today making it the subject.

The speaker does this by calling into evidence, the correlations between variables in the past and showing that with one variable ( high unemployment) currently in effect, the other variable (increasing stock prices) which it correlates with therefore has a chance of happening in the present.

In the rational choice decision process model, which of the following immediately follows the step where possible choices have been discovered or developed?

a. Discover possible choices.
b. Select the choice with the highest value.
c. Implement the selected choice
d. Evaluate the selected choice.

Answers

Answer:

Correct Answer:

b. Select the choice with the highest value.

Explanation:

In the rational choice decision process model, it is a series of process whereby steps are taking towards making a beneficial decision for a given business setup. In a situation where possible choices has been discovered, the next step would be to select the choice with the highest value which is going to be implemented.

The step that followed where possible choices have been discovered or developed is option b.

The following information should be considered:

In the case of the rational choice decision process, it should be the sequence of the process in which the steps should be taken so that the decision should be carried out i.e. beneficial for the business setup. When the possible choices are discovered so the next step should be that the choice should be selected having the high value.

Therefore we can conclude that The step that followed where possible choices have been discovered or developed is option b.

Learn more: brainly.com/question/6201432

Best Foods, Inc. has an unlevered cost of capital of 10 percent. The company generates EBIT of $4,250 per year and has a tax rate of 35 percent. If the firm adds $10,000 of debt to its capital structure, what is the value of the levered firm?

Answers

Answer:

The value of the levered firm $31,125

Explanation:

Value of Firm is the value of present value of expected future earning. It is calculated by dividing the earning after tax by the cost of capital while considering that the business will operate for the foreseeable future time.

EBIT                      $4,250.00

Less

Interest                 $0.00        

EBT                       $4,250.00

Tax 35% x 4250  $1,487.50

EAT                       $2,762.50

Cost of Capial       10%

Value of firm = EAT / Cost of Capital = $2,762.5 / 10% = $27,625

Debt after tax = $10,000 x ( 1 - 0.35 ) = $6,500

Value of Equity = Value of firm - Debt after tax = $27,625 - $6,500 = $21,125

Value of debt = $10,000

Value of levered Firm = $21,125 + $10,000 = $31,125

A 4 year project has an annual operating cash flow of $55,000. At the beginning of the project, $4,600 in net working capital was required, which will be recovered at the end of the project. The firm also spend $23,100 on equipment to start the project. This equipment will have a book value of $4,940 at the end of the project, but can be sold for $5,880. The tax rate is 35 percent. What is the Year 4 cash flow?

a. $65,809
b. $63,422
c. $21193
d. $55,951
e. $65,151

Answers

Answer:Year 4 Cash flow =$65,151.----E

Explanation:

Salvage value of the equipment =$5,880

Book value at end of project  before sale = $4,940

Gain on disposal = $940

tax gain non disposal = 35% of $940 =0.35 x 940= $329

Amount after tax salvage value = $5,880 - $329=$5,551

Year 4 Cash flow = Operating cash flow +Net working capital +Amount after tax salvage value = $55,000 + $4,600 +$5551= $65,151.

Harwell Company manufactures automobile tires. On July 15, 2018, the company sold 1,300 tires to the Nixon Car Company for $50 each. The terms of the sale were 3/10, n/30. Harwell uses the gross method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on July 23, 2018. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and collection on August 15, 2018

Answers

Answer and Explanation:

The Journal entry is shown below:-

1. a. Accounts Receivable Dr, $65,000 (1,300 × $50)

            To Sales revenue $65,000

(Being sales revenue is recorded)

b. Cash  Dr, $63,050

    Sales discount Dr, $1,950 ($65,000 × 3%)

              To Accounts Receivable $65,000

(Being collection  is recorded)

2. a. Accounts Receivable Dr, $65,000

              To Sales revenue $65,000

(Being sales revenue is recorded)

Cash Dr, $65,000

            To Accounts Receivable $65,000

(Being collection is recorded)

Che MFG Company experiences the following cost behavior patterns each week
Fixed costs: supervisor's salary $1,200; factory rent $2,900
Mixed costs: utilities $1,700+ $5.75 per unit
Variable costs per unit manufacturing labor wages $21.00; supplies used in production $9.00; packaging cost $2.75, warranty cost $4
Required: Compute total costs to be incurred for a week with 2,770 units of activity. (Do not round intermediate calculations.)
Total cost___________

Answers

Answer:

Total cost= $123,525

Explanation:

Giving the following information:

Fixed costs: supervisor's salary $1,200; factory rent $2,900

Mixed costs: utilities $1,700+ $5.75 per unit

Variable costs per unit manufacturing labor wages $21.00; supplies used in production $9.00; packaging cost $2.75, warranty cost $4

We need to determine the total cost of 2,770 units:

Total variable cost= 5.75*2,770 + 21*2,770 + 9*2,770 + 2.75*2,770 + 4*2,770

Total variable cost= $117,725

Total fixed costs= 1,200 + 2,900 + 1,700= $5,800

Total cost= 117,725 + 5,800= $123,525

To calculate the after-tax cost of debt, multiply the before-tax cost of debt by ________________
Water and Power Company (WPC) can borrow funds at an interest rate of 10.20% for a period of four years. Its marginal federal-plus-state tax rate is 45%. WPC's after-tax cost of debt is ______________ (rounded to two decimal places).
At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. If WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)?
A. 4.02%
B. 4.47%
C. 3.58%
D. 5.14%

Answers

Answer:

To calculate the after-tax cost of debt, multiply the before-tax cost of debt by (1 - tax rate).

Water and Power Company (WPC) can borrow funds at an interest rate of 10.20% for a period of four years. Its marginal federal-plus-state tax rate is 45%. WPC's after-tax cost of debt is = 10.20% x (1 - 45%) = 5.61%.

At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 45%. If WPC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)?

B. 4.47%

pre-tax cost of debt = bond's yield to maturity

approximate YTM = {120 + [(1,000 - 1,329.55)/15] /  [(1,000 + 1,329.55)/2] = 98.03 / 1,164.775 = 0.08416 = 8.416%

approximate after tax cost of debt = 8.4% x (1 - 45%) = 4.62 = 4.62

since I used the approximate yield to maturity, my answer is not exact. That is why I have to look for the closest available option.

g Builtrite has calculated the average cash flow to be $16,000 with a standard deviation of $4000. What is the probability of a cash flow being greater than $11,000? (Assume a normal distribution.)

Answers

Answer:

89.44%

Explanation:

As we know that:

Z = (Cash Flow - Mean) / Standard Deviation

Here

Cash flow is the observed value which is the lower limit here and is $11,000

Mean is the average value of the sample and is $16,000

Standard Deviation is $4,000

By putting values, we have:

Z = ($11,000 - $16,000) / $4,000

= -1.25

The Z value lower than -1.25 is 0.1056 or 10.56%

This means that the probability of cash flow lower than $11,000 is 10.56% and the probability of cash flow greater than $11,000 will be

Probability of cash flow = (1- 0.1056) = 0.8944  which is 89.44%

Collins Company reported consolidated revenue of $120,000,000 in 20X8. Collins operates in two geographic areas, domestic and Asia. The following information pertains to these two areas:
Sales to External Interarea Sales
Customers Between Affiliates
Domestic $70,000,000 $12,000,000
Asia $50,000,000 $8,000,000
What calculation below is correct to determine if the revenue test is satisfied for the Asian operations?
a. $58,000,000/$120,000,000.
b. $50,000,000/$140,000,000.
c. $58,000,000/$140,000,000.
d. $50,000,000/$120,000,000.

Answers

Answer:

d. $50,000,000/$120,000,000

Explanation:

The computation of the correct calculation when the revenue test is satisfied is shown below:

As we can see that the fourth option is correct i.e.

= Asian sales ÷ Total consolidated sales.

=  $50,000,000 ÷ $120,000,000

Here the affiliate sales are not relevant so the same is not considered

Hence, the correct option is d.

ABC Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $ 17,910,000 Net operating income $ 1,199,970 Average operating assets $ 4,250,000 The division's return on investment (ROI) is closest to:

Answers

Answer:

28.23%

Explanation:

ABC corporation has a sales of $17,910,000

The net operating income is $1,199,970

The average operating assets is $4,250,000

Therefore, the ROI can be calculated as follows

ROI= Net operating income/Average operating assets

= $1,199,970/$4,250,000

= 0.2823×100

= 28.23%

Hence the division's return on investment is closest to 28.23%

Hankins, Inc., is considering a project that will result in initial aftertax cash savings of $5.3 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. The firm has a target debt-equity ratio of .52, a cost of equity of 13.2 percent, and an aftertax cost of debt of 6.6 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of 1 percent to the cost of capital for such risky projects.Required:a. Calculate the WACC.b. What is the maximum cost the company would be willing to pay for this project?

Answers

Answer:

a.

WACC - Company = 10.94%

WACC - Project = 11.94%

b.

The maximum that the company will be willing to pay for this project is $61.0626 million

Explanation:

a.

To calculate the maximum cost that the company will be willing to pay today, we first need to find out the company and project WACC.

The WACC or weighted average cost of capital is the cost of a company's capital structure. It is calculated as follows,

WACC = wD * rD * (1 - tax rate)  +  wP * rP  +  wE * rE

Where,

d, p and e represents debt, preferred stock and common equityw represents the weight of each componentr represents the cost of each component

Weightage of  debt and equity

Total assets = debt + equity

Total assets = 0.52 + 1  = 1.52

wD = 0.52/1.52

wE = 1/1.52

WACC - Company = 0.52/1.52 * 0.066  +  1/1.52 * 0.132

WACC - Company = 0.1094 or 10.94%

WACC of project is 1% more than WACC of company. So WACC of project is 10.94% + 1%  =  11.94%

b.

The maximum that must be paid for this project can be calculated by calculating the present value of the cash flows provided in form of saving by this project.

Using the constant growth model of cash flow approach,

Present value = 5.3 * (1+0.03) / (0.1194 - 0.03)

Present value = $61.0626 million

A firm has a market value equal to its book value. Currently, the firm has excess cash of $1,200 and other assets of $7,800. Equity is worth $9,000. The firm has 600 shares of stock outstanding and net income of $760. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?

Answers

Answer: $1.46

Explanation:

Earnings per share = Net Income/Number of shares

Value of shares at current = 9,000/600

= $15 a share

Excess cash is $1,200.

Using that, the following number shares can be purchases;

= 1,200/15

= 80 shares

New number of shares = 600 - 80

= 520 shares

New EPS

= 760/520

= $1.46

Suppose you work for a company that makes a product line for a large hardware chain. The chain asks you for a price quote for 30,000 units that will require a $1,500,000 investment with marginal costs of $15 per unit. What is the lowest price you are willing to quote

Answers

Answer:

$1,950,000

Explanation:

Note the company has a margin per unit cost and investment cost, where

investment cost =  $1,500,000

+

margin per unit cost =  $450,000 (30,000 x $15)

Thus, total cost = $1,950,000. Since companies do not want to make loses, but may allow for break-even, the lowest price to quote  should not be lesser than the total cost of $1,950,000.

​Ace Cleaning Service is considering expanding into one or more new market areas. Which costs are relevant to Ace's decision on​ whether to expand?

Answers

Answer:

variable and opportunity costs

Explanation:

In simple words, whenever an organisation is planning to expand into new market they should taken into account only those costs which will increase or decrease due to such operations success or failures, therefore, sunk costs would be irrelevant.

Variable cost refers to the cost that increase or decrease with level of operations while opportunity costs relates to the cost profits foregone due to choosing best alternative over second best alternative.

Andrea Apple opened Apple Photography, Inc. on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:

1. Andrea, the stockholder, invested $13,800 cash in the business.
2. Andrea contributed $23,000 of photography equipment to the business.
3. The company paid $2,400 cash for an insurance policy covering the next 24 months.
4. The company received $6,000 cash for services provided during January.
5. The company purchased $6,500 of office equipment on credit.
6. The company provided $3,050 of services to customers on account.
7. The company paid cash of $1,800 for monthly rent.
8. The company paid $3,400 on the office equipment purchased in transaction #5 above.
9. Paid $305 cash for January utilities.

Based on this information, the balance in the A. Apple, Capital account reported on the Statement of Owner's Equity at the end of the month would be:

a. $31,400.
b. $39,200.
c. $31,150.
d. $40,175.
e. $30,875.

Answers

Answer:

$43,745

Explanation:

Calculation for what the Capital account reported on the Statement of Owner's Equity at the end of the month would be

Using this formula

Ending Capital Balance = Cash (1)+ Photography equipment (2) +Cash for services provided (4)+Services to customers on account (6)- Monthly rent(7)- Utility (9)

Let plug in the formula

Ending Capital Balance = $13,800 + $23,000 + $6,000 + $3,050 - $1,800 - $305

Ending Capital Balance= $43,745

Therefore the balance in the Capital account reported on the Statement of Owner's Equity at the end of the month would be: $43,745

Identify effective decision making techniques?

Answers

Answer:

Step 1: Identify the decision. You realize that you need to make a decision. ...

Step 2: Gather relevant information. ...

Step 3: Identify the alternatives. ...

7 STEPS TO EFFECTIVE.

Step 4: Weigh the evidence. ...

Step 5: Choose among alternatives. ...

Step 6: Take action. ...

Step 7: Review your decision & its consequences.

The before-trade domestic price of tomatoes in the United States is $500 per ton. The world price of tomatoes is $400 per ton. The U.S. is a price-taker in the tomatoes market.
If trade in tomatoes is allowed, the United States:______
a) will experience increases in both consumer surplus and producer surplus.
b) may become either an importer or an exporter of tomatoes, but this cannot be determined.
c) will become an exporter of tomatoes.
d) will become an importer of tomatoes.

Answers

Answer:

d) will become an importer of tomatoes.

Explanation:

Consumer surplus would increase because the price at which they buy tomatoes would reduce while producer surplus would reduce because the price of tomatoes would reduce as a result of international trade.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.Because the price of tomatoes in the US is greater than the price of tomatoes in the world, when the US begins international trade, it would import tomatoes because it is inefficient in the production of tomatoes.  

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Welcome Inc. is a global Internet company that offers country-specific variations of its sites, keeping in mind the linguistic and religious differences between the countries. Welcome Inc. is most likely doing this to:

Answers

Answer:

reduce its cultural distance from the other countries

Explanation:

In this scenario, Welcome Inc. is most likely doing this to reduce its cultural distance from the other countries. Cultural distance refers to the differences in cultural values amongst countries, organizations, and stakeholders. In this case, Welcome Inc is trying to reduce this by making sure that they adjust their products and services to best accommodate these specific cultural differences in each country. In doing so they gain more loyal customers and increase their profits in each country which they do business in.

1. Noor Patel has had a busy year! She decided to take a cross-country adventure. Along the way, she won a new car on "The Price Is Right" (valued at $15,500) and won $500 on a scratch-off lottery ticket (the first time she ever played). She also signed up for a credit card to start the trip and was given a sign-up bonus of $100. How much will she have to include in her federal taxable income?

2A. What is the amount of taxes for a head of house hold with a taxable income of $57,500 with a rate of 25%?

B. What is the amount of taxes for a single person with a taxable income of $35,000 with a rate of 15%?

C. What is the amount of taxes for a married couple filling jointly with a taxable income of $70,700 with a rate of 15%?

Answers

Answer:

1. 16,100

Explanation:

To get how much she would include in her federal taxable income. We would have to add up these values:

The car won on the price is right + scratch off lottery + sign up bonus.

15,500 + 500 + 100

=$16,100

2a.

head of household

0 to 9275 at 10% = 927.5

(37650 - 9275)*15% = 4256.1

(57500 - 37650)*25% = 4962.5

total = 927.5 + 4256.1 + 4962.5

= 10146.1

2b

single person

0 to 9275 at 10% = 927.5

(35000-9275)*10% = 3858.75

total = 927.5 + 3858.75

= 4786.25

2c

for married couple

0 to 18550 at 10% = 1855

(70700-1855)*15% = 7822.5

total = 1855 + 7822.5

=9677.5

Chester currently has $17,624 (000) in cash and management has decided to issue stocks and bonds worth an additional $8,000 (000). Assuming that cash from operations will be the same for each of the following activities, which activity exposes this company to the most risk of being issued an emergency loan?
a) purchasing $18,000 (000) worth of plant and equiptment
b) liquidate the new inventory
c) retiring the oldest bond
d) a $5 dividend

Answers

Answer: a) purchasing $18,000 (000) worth of plant and equipment

Explanation:

Of the 4 options listed, liquidating the new inventory would lead to a cash inflow and so is not going to lead to an emergency loan.

Retiring the oldest bond is something that would probably have been budgeted for so it will be less probable to cause Chester to seek emergency funding.

The activity that poses the greatest threat to Chester in terms of loan solicitation would be the purchase of plant and equipment. This would have less chance of being budgeted for and is a significant amount to leave the company which is even larger than the company's current cash amount. It has a higher chance of causing Chester to seek emergency loan funding.

In trial balance, which accounts with normal balance is recorded at the credit side?

Answers

Accrued expenses account

Evaluate the Ritz-Carlton business model and associate key quality characteristics in the operations of a hotel set-up process.

Answers

Answer:

Ritz Carlton is luxury hotel chain of America. The company has 101 luxury hotel in more than 30 countries of the world. The success of Ritz Carlton is mainly because they keep the comfort of their guests as their highest priority. Their mission statement clearly states that comfort and genuine care of their guests is utmost important to them.

Explanation:

Their business model focuses entirely on their customers. Ritz Carlton has created its leading brand by providing great ambiance to the visitors and its guest. One can dream of staying at such luxury hotel. They are famous for their hospitality of their guests. The hotel management believes on total quality management. It has set highest standard for themselves and strive to meet them by providing better and better service to its guests.

The federal government doesn't have a capital budget; however, private enterprises do have a capital budget and when they invest in productive assets such as machinery it is recorded in their capital budget as an asset. What is one of the explanations why the federal government's investments are not discussed in relation to a capital budget and recorded as an asset like a private enterprise's investments are

Answers

Answer:

Hello the options in regards to your question is missing attached below is the complete question

Answer : Private enterprise's investments are in assets that are meant to increase production, which are going to earn revenues and pay for themselves. Thus, private enterprise's spending is unambiguously going towards investments. It is very difficult to determine when the federal government's spending is an investment. ( B )

Explanation:

The federal government's investments are not discussed in relation to a capital budget and recorded as an asset because It is very difficult to determine when the federal government's spending is an investment, because Federal Government is not actually designed to operate as a business entity

As of November 29, it appears that Notel will report earnings per share (EPS) of $1.15 for the quarter ended November 30. Which of the following events would cause this EPS number to decrease, assuming the event occurs the morning of November 30?


A.

The company pays a supplier for inventory bought on account.

B.

The company declares, but does not pay, a cash dividend.

C.

The company purchases 10 shares of common stock in another company.

D.

The company reissues the treasury stock it holds.

Answers

Answer: D.  The company reissues the treasury stock it holds.

Explanation:

Earnings per share is calculated by dividing the Net Income by the weighted average number of shares that a company has outstanding. If the company reissues treasury stock, this would increase the number of average stock outstanding thereby increasing the denominator of the EPS equation which would have the effect of reducing the Earnings per share.

For instance, if a company had net income of $50 and common equity outstanding of $40, the EPS would be;

= 50/40

= $1.25

If the company reissues treasury stock of $30, the EPS would change to;

= 50/ (40 +30)

= $0.71

Suppose that fixed investment is $480 billion and (total) investment is $630 billion. What does inventory investment equal?

Answers

Answer:

$150 billion

Explanation:

Calculation of What does the inventory in

Investment equal

Using this formula

Inventory in Investment =Total investment - Fixed investment

Let plug in the formula

Inventory in Investment=$630 billion-$480 billion

Inventory in Investment=$150 billion

Therefore the inventory investment equal $150 billion .

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with an allowance for sales returns of $400,000. During 2018, Halifax sold merchandise on account for $12,500,000. This merchandise cost Halifax $8,750,000 (70% of selling prices). Also during the year, customers returned $613,000 in sales for credit. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare an entry to record actual merchandise returns as they occur (not adjusting the allowance for sales returns), and then record a year-end entry to adjust the allowance for sales returns to its appropriate balance. 2. What is the amount of the year-end allowance for sales returns after the adjusting entry is recorded?

Answers

Answer:

Please refer to the below explanations.

Explanation:

A.

Sales return and allowance a/c Dr $613,000

To accounts receivable A/c Cr $613,000

(Being retuned goods that is recorded)

Merchandise inventory A/c Dr $429,100

($613,000 × 70%)

To cost of goods sold A/c Cr $429,100

(Being cost of goods sold that was recorded)

Estimated return is therefore;

= Sale value of merchandise × return percentage - actual return

= $12,500,000 × 5% - $613,000

= $625,000 - $613,000

= $12,000

B.

Sales return and allowance A/c Dr $12,000

To accounts receivable A/c Cr $12,000

(Being returned goods that were recorded)

Merchandise inventory A/c Dr $8,400

($12,000 × 70%)

To cost of goods sold A/c Cr $8,400

(Being cost of goods sold that were recorded)

Therefore, the computation for the year end allowance for sales return is same as $8,400.

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