The following information to perform the calculations below (using the indirect method).
Net income $401,000 Beginning accounts payable $119,000
Depreciation expense 97,000 Ending accounts payable 146,000
Beginning accounts receivable 420,000 Purchase of long-term assets 612,000
Ending accounts receivable 439,000 Issuance of long-term debt 220,000
Beginning inventory 516,000 Issuance of stock for cash 180,000
Ending inventory 550,000 Issuance of stock for long-term assets 110,000
Beginning prepaid insurance 42,000 Purchase of treasury stock 64,000
Ending prepaid insurance 48,000 Sale of long-term investment at cost 56,000
Calculate the amount of cash used by investing activities. Only enter the number. No brackets or negative signs required
Answers
Answer: -$556,000
Explanation:
Based on the information given in the question, the the amount of cash used by investing activities would be calculated as:
Purchase of long-term assets -612,000
Add: Sale of long-term investment at cost 56,000
The amount of cash used by investing activities would now be:
= -$612,000 + $56,000
= -$556,000
Related Questions
What stock should I buy
Answers
Question 1: Critique the case from a leadership, internal and external communication with stakeholders, and barriers to communication point of view.
Answers
A general view from the leadership, internal and external communication with stakeholders has been provided
The leadership, internal and external communication with stakeholdersLeadership:
Efficient leadership necessitates setting a definitive vision, encouraging and motivating personnel, and making judicious decisions when required. A successful leader should succinctly verbalize the vision and objectives of the organization and guarantee that employees comprehend their positions in attaining those aims.
Internal communication with stakeholders:Interior communication with stakeholders pertains to communication within an institution with staff, superior executives, and additional internal stakeholders. Successful internal communication can facilitate aligning the visions and aspirations of the corporation and guaranteeing that everybody is progressing towards common ambitions.
External communication with stakeholders:
External communication with stakeholders alludes to communication with purchasers, vendors, financiers, and other external parties. Effective external communication can promote constructing associations with these stakeholders, embellish the standing of the establishment, and elevate customer gratification.
Barriers to communication:Certain obstructions to productive communication can affect the capability of leaders to communicate effectively with stakeholders. These impediments involve speakers barriers, cultural differences, physical detachment, and technological issues. Other hindrances consist of inadequate trust, deficient listening aptitudes, and indefinite or ephemeral messages.
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How does a 12 year old get a lot of money
Answers
Answer:
babysitting, walking dogs, mowing lawns, shoveling snow,
Explanation:
Answer:
Explanation:
1)) babysitting
2)) small bussiness
3)) pet sitting
4)) yard work
5)) house sitting
6)) household work
7)) odd jobs
GL!
SOLVE USING EXCEL
You are considering investing in a project that requires an initial investment
of $500,000. The project is expected to generate cash flows of $100,000 per year for the next 10
years, however, at the end of the fifth year, the project will require an additional investment of
$60,000 to continue operations for another 5 years. At the end of the tenth year, the project has an
expected salvage value of $180,000.
We assume $250,000 is borrowed at 12.5% annual compound interest and repaid in 10 years.
We will use a 10-year planning horizon, a 21% tax rate, an 10.5% BTMARR, and DDB
depreciation method.
Determine ATMARR, and then the preferred payment plan based on ATPW and determine the
ATFW, ATAW, ATIRR, and ATERR for each of the following four plans:
a) Plan 1: Pay interest each period, but make no principal payment until the end of the loan
period
b) Plan 2: Make equal end-of-period principal payments and pay interest each period on
the unpaid balance at the beginning of the period
c) Plan 3: Make equal end-of-period payments over the loan period
d) Plan 4: Make no payment until the end of the loan period
Answers
The percentage of inflow that is paid in taxes is known as the average tax rate (or effective tax rate) for a taxpayer. The tax rate levied on a taxpayer's final dollar of income, however, is known as their marginal tax rate.
ATMARR stands for After-Tax Marginal Average Rate of Return. To calculate ATMARR, we need to first calculate the after-tax cash flows for each year of the project:
Year 1:
Cash inflow: $100,000
Taxable income: $100,000 - $50,000 (depreciation) = $50,000
Taxes: $10,500
After-tax cash flow: $89,500
Year 2-4:
Cash inflow: $100,000
Taxable income: $100,000 - $50,000 (depreciation) = $50,000
Taxes: $10,500
After-tax cash flow: $89,500
Year 5:
Cash inflow: $100,000
Taxable income: $100,000 - $50,000 (depreciation) = $50,000
Taxable income with additional investment: $100,000 - $50,000 (depreciation) - $60,000 (investment) = -$10,000
Taxes: $0
After-tax cash flow: $100,000 - $60,000 = $40,000
Year 6-10:
Cash inflow: $100,000
Taxable income: $100,000 - $50,000 (depreciation) = $50,000
Taxes: $10,500
After-tax cash flow: $89,500
Salvage value:
Cash inflow: $180,000
Taxable income: $180,000 - $95,000 (book value) = $85,000
Taxes: $17,850
After-tax cash flow: $162,150
Now we can calculate the ATMARR using the after-tax cash flows and the initial investment:
NPV = -$500,000 + $89,500/(1+ATMARR)^1 + $89,500/(1+ATMARR)^2 + $89,500/(1+ATMARR)^3 + $40,000/(1+ATMARR)^4 + $89,500/(1+ATMARR)^5 + $89,500/(1+ATMARR)^6 + $89,500/(1+ATMARR)^7 + $89,500/(1+ATMARR)^8 + $89,500/(1+ATMARR)^9 + $162,150/(1+ATMARR)^10
Solving for ATMARR using a financial calculator or spreadsheet software gives us a value of approximately 12.6%.
To determine the preferred payment plan based on ATPW, we need to calculate the present value of the cash inflows using the ATPW formula:
ATPW = (1 - (1 + i)^(-n)) / i
where i is the interest rate (10.5%), and n is the number of years (10).
ATPW = (1 - (1 + 0.105)^(-10)) / 0.105
ATPW = 6.746
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What is the relationship between quality and productivity? Explain.
(Principles of Management)
Answers
Answer: Quality and productivity are closely related concepts in management. Quality can enhance productivity, while productivity can affect quality. Both require effective management to achieve optimal outcomes. It is important for managers to balance quality and productivity to ensure that both are optimized and that the company achieves its goals.
Explanation:
Quality and productivity are two important concepts in the field of management, and there is a close relationship between them. The relationship between quality and productivity can be explained as follows:
Quality can enhance productivity: When quality is improved, it can enhance productivity. This is because high-quality products or services are often more efficient and effective, which can lead to increased productivity. For example, if a manufacturing company produces high-quality products that have fewer defects, it can improve its production efficiency and reduce the need for rework, which can ultimately increase its productivity.
Productivity can affect quality: On the other hand, productivity can also affect quality. When productivity is increased, there may be a temptation to sacrifice quality in order to achieve higher output levels. This can lead to lower-quality products or services, which can negatively impact customer satisfaction and the company's reputation.
Quality and productivity both require effective management: Both quality and productivity require effective management to achieve optimal outcomes. Effective management can ensure that resources are allocated efficiently, processes are streamlined, and performance is monitored to ensure that quality and productivity goals are being met.
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Answer:
Higher quality often leads to increased productivity as it reduces the need for rework and increases customer satisfaction. However, productivity can sometimes lead to a decrease in quality.
Explanation:
The relationship between quality and productivity is complex and intertwined. In general, improving quality can lead to increased productivity, as fewer mistakes and rework mean that work is completed more efficiently. Similarly, increasing productivity can also lead to higher quality, as workers have more time and resources to focus on doing the job right.
However, it is important to note that the relationship is not always linear or straightforward. Sometimes, attempting to increase productivity at the expense of quality can actually decrease overall productivity, as mistakes and rework can end up taking more time and resources in the long run.
Ultimately, the key to maximizing both quality and productivity is to strike a balance between the two, focusing on continuous improvement in both areas and ensuring that efforts to increase one do not come at the expense of the other.
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Stanley receives his degree from OCC. Stanley leaves his job at Trump Organization, paying him $100,000 a year. Stanley uses his life saving of $250,000 that he had deposited at Wells Fargo at an annual rate of 5% to start his own clean-energy company. Stanley’s first year revenue and expenses are as follow, Rent $23,000 Salary 57,000 Utility 22,000 Others 13,000 _________ Total 115,000 _________ Revenue for the year $180,000 11. Stanley’s explicit costs for the year is Group of answer choices $215,000 $112,500 $180,000 $216,250 $115,000
Answers
Stanley’s explicit costs for the year is $115,000.
Using this formula
Explicit costs=Rent+ Salary+ Utility+ Others
Where:
Rent=$23,000
Salary=$57,000
Utility=$22,000
Others=$13,000
Let plug in the formula
Explicit costs= $23,000+$57,000+$22,000+$13,000
Explicit costs=$115,000
Inconclusion Stanley’s explicit costs for the year is $115,000.
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⦁ Give me an example of how you have demonstrated safe work practices.
Answers
An example of safe work practices is cleaning and maintaining equipment and tools.
Safe work procedures are instructions on how to execute work in a safe manner and are essential for all hazardous jobs performed at your business. They identify dangers and explain what has to be done to remove or reduce risks.
Cleaning and maintaining equipment and tools properly can help to avoid accidents and injuries, as well as costly repairs. One method is to keep a cleaning and maintenance routine. Make a record of all equipment in use, noting important areas that require inspection.
Therefore, maintenance of equipment is how we can demonstrate safe work practices.
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Equipment and tool maintenance and cleaning are two examples of safe work practices.
All hazardous operations carried out at your company must follow safe work procedures, which are guidelines for how to carry out work in a safe manner. They point out risks and describe what has to be done to eliminate or lessen them.
Proper equipment and tool maintenance can reduce the risk of accidents, injuries, and expensive repairs. Maintaining a cleaning and maintenance schedule is one strategy. Make a list of all the equipment that is in use, noting any crucial locations that need inspection.
As a result, maintaining the equipment is how we can show safe working practices.
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DHL express deals with :
a) Air freight of goods
b) petroleum products
c) motorcycle company
d) import and export good
Answers
Answer:
DHL express deals with:
d)import and export good
whats a job description and person specification for nursing assistant?
Answers
Answer:
Enumerated below.
Explanation:
Job description of nursing assistant:
1) Help patients to make use of the bathroom.
2) Clean and bathe any patient or resident that requires it.
3) Maintain hygiene of patients as well as change of bedding they use.
4) Turn, reposition and ensure smooth movement of patients in between the wheelchairs, seats and beds
5) Serve meals and help the patients to eat their food.
6) Carry out simple checks on important things like blood pressure and temperature.
7) Give a listening ear to patients in regards to any health concerns they have and then report such details to a Registered Nurse or Doctor.
Person specification are the personal attributes desired in the potential nursing assistant. They include:
1) Should show excellent attention to detail.
2) Should be very good with written and verbal communication
3) Should possess strong ability to carefully read and also follow directions.
4) Should show flexibility in exercise of work duties and schedule.
5) Should be a very good team player.
6) Strong enough to lift/carry and move patients.
7) Should have very good foundation of clinical skills and clinical knowledge.
To sum up international trade theory, we can say that the primary reason for trade is
Answers
Answer:
The primary reason for trade is for the economic development of a country.
Explanation:
Trade makes a significant and necessary contribution to the economy and the country's development particularly in underdeveloped countries. The rapid progress of underdeveloped countries in the Industrial field is due to their exports. In most countries, such would represent a significant share of their gross domestic product (GDP).
IMA GOIN BROKE FROM THESE GIVAWAYS BUT HERES MORE POINTS
Answers
Answer:
TYSM YOU ARE AMAZING
Explanation:
How have cloud-based applications changed the way people edit documents?
Answers
We can actually deduce here that cloud-based applications has changed the way people edit documents by allowing multiple users to access, review and edit a document in real time but from different locations.
What is cloud-based application?A cloud application is actually known to be a software application that is known to be deployed in a cloud environment and not actually hosted on a local server but accessible via the internet.
Cloud computing is the technology that is changing how people store and share files. Documents can be stored in the cloud system for years and accessed from anywhere and at anytime.
We see here that with cloud collaboration multiple users can work on a document at real time.
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For each example, identify the most appropriate CTSO.
Lee wants to have a career in the manufacturing field:
Paulina wants to be a Surgeon:
Fernando wants to be an Engineer:
Uma is an adult who wants to start a small farm:
Answers
Lee wants to work in manufacturing, Fernando wants to be an engineer, and Paulina wants to be a physician, all according to SkillsUSA, TSA, and HOSA. Uma, who is an adult, wants to start a little farm: NYFEA
CTSO's definitionStudent groups known as "Career and Technical Student Organizations" (CTSOs) are involved in career and technical education programs that actively incorporate leadership development into their curricula.
Why CTSO is importantestablishing beneficial and maybe long-lasting business alliances. linking what is learned in school to experiences that are had in the real world. encouraging young people to succeed academically and to contribute positively to society. planning, communication, and leadership skills are being improved.
Following are the 4 CTSOs:The non-profit career and technical student organization Distributive Education Clubs of America, Inc., or DECA Inc., has more than 225,000 members in all 50 states of the country (CTSO). Thus, DECA theory helps Ann achieve her ambition of working as a manager.The TSA, or the Technology Student Association, aids teachers in attaining their objectives for educating students in STEM subjects. Thus, Teresa's desire to pursue a career in mathematics is supported by the TSA hypothesis.The organization is called HOSA, or Health Occupations Students of America. CTE students can interact with this outside group through events, competitions, and other activities to develop their skills and knowledge.Adults enrolled in agriculture programs can join the National Young Farmer Educational Association, Inc. (NYFEA), a group for vocational students that frequently includes students from a nearby vocational agriculture/agricultural education program.Learn more about Career and Technical Student Organizations: https://brainly.com/question/12051954
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Answer:
For each example, identify the most appropriate CTSO.
Lee wants to have a career in the manufacturing field:
✔ SkillsUSA
Paulina wants to be a Surgeon:
✔ HOSA
Fernando wants to be an Engineer:
✔ TSA
Uma is an adult who wants to start a small farm:
✔ NYFEA
For each example, identify the most appropriate CTSO.
Lee wants to have a career in the manufacturing field:
✔ SkillsUSA
Paulina wants to be a Surgeon:
✔ HOSA
Fernando wants to be an Engineer:
✔ TSA
Uma is an adult who wants to start a small farm:
✔ NYFEA
Explanation:
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N 1: BUSINESS SECTORS Complete the table by referring to the companies/ profession and classify each under the correct business sector. Khulamini farming, Makwakwa Attorneys. Cape Timber & Mo Shoprite, Anglo platinum, Eskom. Thanda Construction (Pty) L PRIMARY SECTOR SECONDARY SECTOR TERTIARY SEC Advise businesses on the purpose (importance) of the private sector
Answers
Makwakwa Attorneys SECONDARY
Cape Timber & Mo SECONDARY
Shoprite SECONDARY
Anglo platinum SECONDARY
Eskom SECONDARY
What is the purpose and importance of the private sector?The private sector plays a crucial role in the economy by driving innovation, creating jobs and contributing to economic growth. It encompasses businesses and organizations that are privately owned and operated, rather than being under government control.
The private sector includes various industries such as agriculture, manufacturing, services, finance and more. Its purpose is to generate profit and provide goods and services to meet the demands of consumers. By operating independently, the private sector promotes competition, efficiency and entrepreneurship leading to economic development and increased prosperity.
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Company A has been experiencing lost sales and high returns recently, so they have decided to undertake a comprehensive quality program. The program would require additional inspection of products prior to shipment at an estimated cost of 45000, and the upgrading of production equipment at an estimated cost of 400000. Company A knows that if it undertakes this program, it will be able to reduce warranty repair costs by 25000. They also know they will be able to avoid lost profits by retaining customers, but they cannot quantify that benefit with any degree of precision.Should company A go ahead with the quality program?
Answers
Answer:
Explanation:
Incremental cost
Inspection cost prior to shipment - 45,000
Upgrading of equipment - 400,000
Incremental benefit - 25,000
The incremental cost of improving quality far outweigh the incremental benefit
Even though loss of profit was avoided by retaining existing customers , yet the quality improvement program dies not guarantee additional customers and profit to write off or reduce the incremental cost .
Therefor , it is not advisable fort the company to go on with the quality program.
Activities would you perform as an entrepreneur?
Answers
Answer:
no. because why it make since to person as an entrepreneur
Your uncle just won the weekly lottery, receiving $375,000, which he invested at a 7.5% annual rate. He now has decided to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. What is the maximum number of whole payments that can be withdrawn before the account is exhausted, i.e., before the account balance would become negative? (Hint: Round down to the nearest whole number.)
Answers
Answer:
22
Explanation:
Calculation to determine the maximum number of whole payments that can be withdrawn
Based on the information given we would be using financial calculator to determine the maximum number of whole payments that can be withdrawn which represent N
PV -$375,000
PMT $35,000
I 7.50% Annual rate
FV $0
N ?
Hence;
N=22
Therefore the maximum number of whole payment that can be withdrawn will be 22
Which action taken by a central bank would reflect expansionary monetary policy?
Answers
The action taken by a central bank which would reflect the expansionary monetary policy is the sale of treasury securities to banks and the lowering down of reserve requirements.
Options A and C are correct.
What is a central bank?A central bank is referring to the largest bank that controls the regional and subordinate banks. It is the bank in which the commercial banks keep the needed reserve ratio. There are various policies being made by the central bank to monitor the monetary system like fiscal policy, monetary policy, economic policy, etc.
The central bank of the US country is the Federal Reserve that applied the expansionary monetary policy. The three ways that are made by Federal Reserve in respect of this policy are by making the discount rates to be fallen down for every bank, by acquiring the securities being sold by the government in the market and by keeping the reserve ratio to the lowest so that commercial banks can easily maintain them.
Therefore, the explanations written in option A and C are correct.
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Question's missing part:
The options are given as follows:
A) Selling treasury securities to banks to reduce the money supply
B) Raising the discount rate to provide less in loans to banks
C) Lowering the reserve requirements for all banks
D) Raising the interest that it pays to banks on the balance of their
reserves
1. Income Tax Payable
Answers
Answer:
Income Tax Payable is the amount of tax that the company owes, and that it plans to pay within the next year. Income Tax Payable is shown under the current liabilities section of the Balance Sheet.
Tax liabilities that are planned to be paid in more than a year are listed in a separate account under the Long-Term Liabilities section of the Balance Sheet.
Ivanhoe Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (7-year life) $310,800 4/1/20 Purchase goodwill (indefinite life) 354,000 434,000 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 160,800 8/1/20 Payment of copyright (5-year life) Research and development costs 9/1/20 224,000 $1,483,600 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) amount Account Titles and Explanation Debit Credit Make the entry as of December 31, 2020, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Reflect all balances accurately as of December 31, 2020. Use straight-line amortization $ $ $ $
Answers
Following are instructions for creating the necessary entries to close the Innovative Assets account and create multiple ones for various categories of intangibles.
What do you term a business account?Quick access to business bank accounts. a check account for business. Bank account for a business. Money market account for businesses. Guarantee of Deposit for Business.
Account Names and Descriptions
Credit
Patents
Godwill
Franchise
Copyright
$ 354,000
$ 434,000
$ 160,800
Expense for research and development
$ 224,000
Non-tangible assets
(To balance the account for intangible resources)
$ 1,483,600
Account Names and Descriptions
Debit
Credit
Depreciation cost
$ 79,500
(310,800/7) Patents
($434,000/10*6/12) Franchise
($160,800/5*5/12) Copyright
(To keep track of amortisation costs)
Debit $ 310,800
$
44,400
$
21,700
$
13,400
Utilize amortisation in a straight line:
$310,800 to $44,400 for patents
Godwill
($434,000–$21,700) franchise
$ 266,400
$ 354,000
$ 412,300
($160,800 - $13,400) Copyright
$ 147,400
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A buyer and seller agree upon the price of an item. What type of price is this
known as?
A. Market price
B. Spot price
C. Bid price
D. Bid price
Answers
A buyer and seller correspond upon the price of an item at the same time is called as the spot price.
What is the spot price?The spot price is the present market price at which a particular asset, such as securities, product, or currency, can be bought or sold for immediate delivery.
This price is determined by the agreement made between the buyer and the seller, and it is determined by the mutual consent of both the parties.
Therefore, option B is correct.
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Interpret this wavelet coherence graph
Answers
The lead/lag phase relations between the studied series are shown as an arrow in the wavelet coherence plots. When the two-time series have a zero phase difference, they move in unison on that scale. Depending on whether the time series are in phase or antiphase, arrows will point to the right (left). The correlation between two signals is gauged by wavelet coherence.
The examination of frequency change in the time domain is made possible by wavelet analysis, which enables the change from a time-value system to a time-scale (frequency) system. Based on the frequency components that each signal contains, the coherence function calculates the correlation between the signals. The spectrum is hence a correlation. By calculating the cross-phase spectrum, one can also derive time differences as a function of frequency.
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Which of the following is an insurance company?
Answers
(saw your other post)
I hope this helps! Let me know if you have any questions! Good luck on the rest of your assessment!
Mark this as Brainliest (if i helped of course) if you get a chance:)
The number and characteristics of sellers and buyers is called market structure.
True or False
Answers
Explanation:
Market structure describes the economics and characteristics of marketing.
Your friend is trying to establish good credit. Your friend is thinking about taking out a $15,000 auto loan to establish some credit on his credit report. Do you think this is a good idea for your friend to do this? Do you have an alternate suggestion? Why?
Answers
Answer:
I think this is a good idea if my friend has the income (job) to repay the loan and not miss a payment, and doing that will help build credit.
If my friend takes out the loan and knows it will not be repaid back on time and misses deadlines, it would be a bad idea to take the loan in the first place.
Another suggestion would be paying for groceries, gas, etc., and repay back if you have an income and build great credit that way.
Also, you can have a parent/guardian add you to their credit account, so let's say my friend's mother adds my friend to her account, and when the mother makes her payments, it will help my friend build credit.
Hearne Company has a number of potential capital investments. Because these projects vary in nature, initial investment, and time horizon, management is finding it difficult to compare them. Assume straight line depreciation method is used. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided.)
Project 1: Retooling Manufacturing Facility This project would require an initial investment of $4,850,000. It would generate $865,000 in additional net cash flow each year. The new machinery has a useful life of eight years and a salvage value of $1,000,000.
Project 2: Purchase Patent for New Product The patent would cost $3,400,000, which would be fully amortized over five years. Production of this product would generate $425,000 additional annual net income for Hearne.
Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $115,000 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $5,000. Purchasing the fleet would allow Hearne to expand its customer territory resulting in $200,000 of additional net income per year.
Required:
a. Determine each project's accounting rate of return. (Round your answers to 2 decimal places.)
b. Determine each project's payback period. (Round your answers to 2 decimal places.)
c. Using a discount rate of 10 percent, calculate the net present value of each project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answersto 2 decimal places.)
d. Determine the profitability index of each project and prioritize the projects for Hearne. (Round your intermediate calculations to 2 decimal places. Round your final answers to 4 decimal places.)
Answers
Answer:
Hearne Company
Project 1 Project 2 Project 3
Initial investment cost $4,850,000 $3,400,000 $2,875,000
Annual cash inflows 865,000 1,105,000 475,000
PV annuity (5.335/3.791/6.145) 4,614,775 4,189,055 $2,918,875
Useful life 8 years 5 years 10 years
Salvage Value 1,000,000 0 125,000
PV (0.467/0/0.386 467,000 0 48,250
Depreciable/Amortization amount $3,850,000 $3,400,000 $2,750,000
Annual depreciation/amortization 481,250 680,000 275,000
Annual Returns 383,750 425,000 200,000
Average annual investment cost 606,250 680,000 287,500
a. Accounting rate of return 63.30% 62.50% 69.57%
b. Payback period 5.61 years 3.08 years 6.05 years
Total PV of cash inflows 5,081,775 4,189,055 2,967,125
c. NPV $231,775 $789,055 $92,125
d. Profitability Index 1.0478 1.2321 1.0320
Prioritization of Projects:
Project 2
Project 1
Project 3
Based on NPV, Profitability Index, and Payback Period.
Explanation:
a) Data and Calculations:
Project 1 Project 2 Project 3
Initial investment cost $4,850,000 $3,400,000 $2,875,000
Annual cash inflows 865,000 1,105,000 475,000
PV annuity (5.335/3.791/6.145) 4,614,775 4,189,055 $2,918,875
Useful life 8 years 5 years 10 years
Salvage Value 1,000,000 0 125,000
PV (0.467/0/0.386 467,000 0 48,250
Depreciable/Amortization amount $3,850,000 $3,400,000 $2,750,000
Annual depreciation/amortization 481,250 680,000 275,000
Annual Returns 383,750 425,000 200,000
Average annual investment cost 606,250 680,000 287,500
Accounting rate of return 63.30% 62.50% 69.57%
Payback period 5.61 years 3.08 years 6.05 years
Total PV of cash inflows 5,081,775 4,189,055 2,967,125
NPV $231,775 $789,055 $92,125
Profitability Index 1.0478 1.2321 1.0320
Key Calculation Formulas:
Annual cash flows = Annual Depreciation Plus Annual Net Income
Present of annual cash flows = Annuity factor * Annual cash flows
PV of Salvage value = Salvage value * Discount Factor
The Depreciable or Amortization amount = Initial investment cost Minus Salvage value
Annual Returns = Annual Cash inflow Minus Depreciation
Average annual investment cost = Initial investment cost/useful life
Accounting rate of return = average annual returns/average annual investment cost
Payback period = Initial investment/Annual cash inflows
Total PV of cash flows = PV of annual cash inflows + PV of Salvage value
NPV = Total PV of cash flows Minus Initial Investment Cost
Profitability Index = Total PV of cash flows/Initial Investment Cost
For which reasons could you face a penalty annual percentage rate (APR)?
Select all the correct answers.
balance transfer
exceeding credit limit
late payment
low credit score
paying entire balance in full
returned payment
Answers
The reasons one could face a penalty annual percentage rate (APR) include;
balance transferexceeding credit limitlate paymentAnnual Percentage Rate (APR)Annual percentage rate (APR) refers to the yearly interest generated by a sum that's charged to borrowers or paid to investors. APR as the name implies is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment.
On this note, it follows that Annual percentage rate can be charged on the occurrence of any of the aforementioned situations.
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The supply curve will shift because of
Answers
The supply curve will shift because of changes in production costs and related factors.
The supply curve will shift when the production cost increases, resulting in lower number of goods produced; or when production cost decreases, resulting in higher number of good produced.
Changes in the curve are often the result of changes in prices of materials, cost of labor, utilities costs, technological changes, competition, regulatory changes, and so on.
If the supply curve shifts up, that means less goods produced due to the higher cost to manufacture the product. If the supply curve shifts down, then more goods can be produced as costs of manufacturing the product decreases.
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What was centerpiece arrangements retained earnings for December 31, 2024? And retained earnings for January 1 2024? And Net income for the year January 2024?
Answers
1. Centerpiece Arrangements' retained earnings for December 31, 2024, were $2,400.
2. Centerpiece Arrangements' retained earnings for January 1, 2024, were $5,100.
3. Centerpiece Arrangements' Net Income for January 1, 2024, was $2,100.
What are Retained Earnings?Retained earnings are the undistributed profits of an entity accumulated over a period of time.
The formula for computing the Retained Earnings is Beginning Retained Earnings Plus Net Income or Loss Minus Dividends.
Data and Calculations:Centerpiece Arrangements
Statement of Retained EarningsFor December 31, 2024
Retained Earnings, January 1, 2024, $5,100
Net Income 2,100
Dividends 4,800
Retained Earnings, December 31, 2024, 2,400
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Question Completion:Centerpiece Arrangements - X Data Table
Retained Earnings, January 1, 2024, $5,100
Accounts Payable 17,600
Office Supplies 1,700
Common Stock 9,000
Accounts Receivable 8,000
Cash 7,200
Equipment 12,100
Centerpiece Arrangements
Income StatementYear Ended December 31, 2024
Revenues:
Service Revenue $ 70,000
Expenses:
Salaries Expense $ 46,000
Rent Expense 16,000
Insurance Expense 4,500
Utilities Expense 1,400
Total Expenses 67,900
Net Income $ 2,100
Torino Company has 1,500 shares of $10 par value, 7.0% cumulative and nonparticipating preferred stock and 15,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:________.
a. $1,600.
b. $550.
c. $1,050.
d. $2,100.
e. $500.
Answers
Answer:
a. $1,600.
Explanation:
The computation of the amount of the dividend that should be paid to the preference shareholder in the second year is shown below:
Annual dividend is
= 1,500 shares × 7% × $10
= $1,050
Now the dividend that should be paid to the next year
= $1,050 + $1,050 - $500
= $1,600
Hence, the mount of the dividend that should be paid to the preference shareholder in the second year is $1,600