An analyst makes the following forecasts of cash flows for a firm with $2 billion of debt at the end of 2006 (in millions of dollars): 2007 2008 2009 Cash flow from operations $1,460 $1,680 $1,780 Cash investment $ 580 $ 585 $ 805 The free cash flow will grow at a rate of 4% per year after 2009. The
Olivo Company manufactures products that it sells for $33 each. Variable costs are $22 per unit, and annual fixed costs are $454,900. Use the EQUATION METHOD to calculate the sales in units that will result in a $28,000 profit. (selling price/unit) x (# of units) = (variable rate/unit) x (# of units) + total fixed costs +
Ronnie Cat Inc., produces and sells electric lawn mowers for $270 each. The variable costs of each mower total $165 while total monthly fixed costs are $19,950. Current monthly sales are $101,250. The company is considering a proposal that will increase the selling price by 5.55%, increase total fixed costs by 50% and increase u
Question 12: A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is: a) three times as large b) one-third as large c) nine times as large d) one-ninth as large e) cannot be determined Please select the right answer and explain how you have calculated it
Norton's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following unit data apply: Model X Model Y Model Z Selling Price $80 $90 $100 Direct Materials
Please see the attached file. 1) Compute the budgeted manufacturing overhead rate for 2004. 2) Compute the under-or over-allocated manufacturing overhead of Zaf Radiator in 2004. Dispose of this amount using a) Write-off Cost of Goods Sold b) Proration based on ending balances (before proration) in Work i
Please see the attachment. 3. After examining the records of AIS Consultants Incorp., you determined the following end-of-year amounts: 2006 2005 Credit Sales 200,000 160,000 Accounts Receivable 45,000 40,000 Allowance for Bad Debt 2,000 1,000 AIS Consultants uses the percentage-of-sales method to estimate bad deb
Please see the attachment. 1. (8pts) Match as many of the descriptions as possible with one of the terms. If no match is possible, answer "7." Place the number to the right of the letter below. a. Reports the major classes of operating cash receipts and payments of an entity during a period b. Investing and financin
GIVE FEW EXAMPLES OF HOW A BUSINESS MIGHT PROTECT ITSELF AGAINST UNCOLLECTED ACCOUNTS AND WHAT PROTECTION METHODS ARE REALLY WORTH THE EXPENSE. PLEASE GIVE A FEW EXAMPLES FOR EACH.
1. An improvement made to a machine increased its fair market value and its production capacity by 25% without extending the machine's useful life. The cost of the improvement should be ...... (expensed, debited to accumulated depreciation, capitalized in the machine account, allocated between accumulated depreciation and the
BMS Inc Selected Financial Data December 31, 2007 Current assets 150,000 Current liabilities 100,000 Inventories 50,000 Accounts receivable 40,000 Net sales 900,000 COGS 675,000 Current ratio: Quick ratio: Average collection period: Inventory turnover: Explain
If the supply/demand for a product are given by: Supply: p = 1/6q^2; demand p = -1/6q^2 +36 Where p is the price and q is quantity. What is the equilibrium price?
How to calculate manufacturing overhead budget and sales budget? Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $12 and $25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the
Based on the analysis of the last six months' sales, your boss notices that sales of beef products are declining in your chain's restaurants. As beef entrée sales decline, so do profits. Fearing beef sales have declined due to several newspaper stories reporting E.coli contamination discovered at area grocery stores, he sugge
Company's current return on equity is 14%. It pays out one half of earnings as cash dividends (payout ratio = .5). Current book value per share is $50. Book value per share will grow as the company reinvests earnings. Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE
Not-for-profit entities usually receive minimal - if any - revenue from traditional sources like sales. Discuss the accounting issues that arise because of this.
Please help answer the following question regarding accounting. Provide at least 200 words. Can you describe for me the two major constraints inherent in the presentation of accounting information and the significance they play in financial accounting?
The controller for Tulsa Photographic Supply company has established the following activity cost pool and cost drivers Activity cost pool budgeted overhead cost machine setup................. $250,000 Material handling.............. 75,000 Hazardous waste control........ 25,000 Qu
Break-Even Computation B&B company reports the following items: Direct materials per unit . . . . . . . . $ 2.25 Direct labor per unit . . . . . . . . . . 3.95 Variable overhead per unit . . . . 1.80 Monthly rent . . . . . . . 2,200.00 Monthly depreciation . . . . . 680.00 Other monthly fixed costs. . . . . . . . 2,40
Please see the attachment. Chambers Brokerage Services, Inc was formed on May 1, 2006. The following transactions took place during the first month. Transactions on May 1: 1. Stockholders invested $120,000 cash in the company in exchange for stock. 2. Hired two employees to work in the warehouse. They will each be paid
See Attached file. Selected transactions for H Burns, Inc, an interior decorating firm, in its first month of business are as follows: Jan 2 Invested $15,000 cash in business in exchange for common stock. 3 Purchased used car fro $4,000 cash for use in business. 9 Purchased supplies on account for $500. 11
The Welding Department of Batista Manufacturing Company has the following production and manufacturing cost data for February 2008. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,000 units Materials $18,000 1/10 comple
5-43 Make-or-buy Tanner Appliance Company manufactures 12,000 units of part M4 annually. The part is used in the production of one of its principal products. The following cost information is available on part M4: Direct Materials $11 Direct Labor 9 Unit-related support 4 Batch-related support 5
The company is deciding whether to invest in a certain capital investment. The investment requires an initial outlay of $55,000 and annual payments of $12,000 made at the end of the year for five years. The company's discount rate is 14%. What is the present value of cash outflows related to this investment?
What is meant by "qualitative characteristics of accounting information"?
Operating Cash Flows. Talia's Tutus bought a new sewing machine for $40,000 that will be depreciated using the MACRS depreciation schedule for a 5-year recovery period. a. Find the depreciation charge each year. b. If the sewing machine is sold after 3 years for $22,000, what will be the after-tax proceeds on t
Megagrocer is a grocery chain that operates five stores. The stores are supplied with produce, meat, dairy, and dry goods by six separate vendors. In addition to the stores, Megagrocer maintains an e-commerce site through which customers can order and pay for groceries. The groceries are packed and delivered to customers from on
Ernst Equipment Co. wants to prepare interim financial statements for the first quarter. The wishes to avoid making a physical count of inventory. Ernst's gross profit rate averages following information for the first quarter is available from its records: January 1 beginning inventory . . . . . . . $ 752,880 Cost of goo
Selig Sporting Goods Inc. has been experiencing growth in the demand for its products over the last several years. The last two Olympic Games greatly increased the popularity of basketball around the world. As a result, a European sports retailing consortium entered in to an agreement with Selig's Roundball Division to purchase
The following additional information is available about flight 581: A. Member of the flight crew are paid fixed annual salaries, whereas the flight assistance are paid by the flight. B. One-third of the liability insurance is a special charge assessed against Flight 581 because in the opinion of the insurance company, the d