Get college assignment help at uniessay writers Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $36,152. Click here to view PV table. its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 125.) What Internal rate of return Click if you would like to Show Work for this question: Open Show Work
Assignment Problem Seven-4 (Dividend vs. Interest Income Cindy,Charlotte and Carol Brock are sisters who are Canadian residents. Over the years, they have enjoyed varying degrees of economic success. As a consequence, they are currently subject to significantly different tax rates. This is shown in the following table: Carol Charlotte Cindy 15% 7% 26% 14% 33% 21% Federal Marginal Tax Rate Provincial Marginal Tax Rate In 2017, their father and mother were killed in a parachuting accident. Their will leaves all of their assets to their three daughters to be shared equally. While it will take some time for their estate to be completely settled, the trustee was able to distribute cash of $300,000 during 2017. Each of the sisters intends to invest their $100.000 share of the distribution on January 1, 2018. They are considering the following two alternatives: Corporate Bonds Corporate bonds that provide a 6 percent coupon rate. These bonds can be purchased at their maturity value. They mature in 12 years. Common Stock The common shares are available at a price of $50 per share. These shares pay a well established annual eligible dividend of $3.25 per share. The income from these investments would not move any of the three sisters to a higher federal provincial tax bracket. The provincial dividend tax credit on eligible dividends is equal to 25 percent of the dividend gross up. Each sister already has sufficient income to use all of her available tax credits. or Advise each of the Brock sisters as to which investment they should make. As Required: part of your recommendation, calculate the after tax return that would be generated for each of the sisters, assuming that they invested their $100,000 in:
erty costs $35,000, linked to the two properties? Assignment Problem Seven -2 (Rental Income) During 2018, Ms. Alice Busting owns four residential rental properties. Relevant information on these properties is as follows: 96 Flager Street 14 Mark 32 Barton Boulevard 26 Hart Avenue Street 1 1 CCA Class Capital Cost Of Building January 1, 2018 UCC $570,000 514,800 $307,500 $1,033,750 266,250 $1,180,000 Nil 703,250 Rental receipts and expenses, not including CCA, for year ending December 31, 2018 are as follows: 96 Flager Street 14 Mark Avenue 32 Barton Boulevard 26 Hart Street $46,500 ( 18,550) (12,750) $63,000 ( 15,500) ( 30,000) Rental Receipts Property Taxes Interest Charges Other Expenses (Not Including CCA) Net Rental Income (Loss) $16,000 (12,113) 5,250) $79,500 ( 17,756) ( 51,625) ( 10,500) 4,500) 1,375) 6,750) Before CCA $ 5,619 ($ 2,738) $ 10,750 $ 4,700 Other Information : 1. During 2018, Ms. Busting spent $78,750 on improvements to the property at 14 Mark Avenue. While none of the changes were required, the tenant insisted on the changes before he was prepared to renew his lease. These improvements will also enhance the value of this property. Suscosl 2. The building at 96 Flagler Street was sold during 2018 for $653,000. 9s 3. The building at 32 Barton Boulevard was sold during 2018 for $231,000. Ms.Bunting had furnished this property several years ago at a cost of $28,750. The UC for these Class 8 assets was $4,498 on January 1, 2018. Given the condition of the furnish- ings, they were simply given to the former tenants who agreed to take them when they moved out. 4. The property at 26 Hart Street was acquired during 2018 for $1,180,000. Required: Calculate Ms. Busting’s minimum net rental income for 2018. You should provide a separate CCA calculation for each property and specify how much CCA should be taken for each building. Include in your solution any tax consequences associated with the sale of the two buildings and the disposition of the furniture.
2017 2018 $12.17 Year-end common stock price Year-end shares outstanding $6.00 250,000 100,000 40% Tax rate 40% Balance Sheets Prepare the following: Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Gross Fixed Assets Less Accumulated Dep Net Fixed Assets Total Assets 2017 2018 $14,000
Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,400, 25,000, 27,000, and 28,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 20% of the following month’s unit sales. d. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $64,000 9. If 108,800 pounds of raw materials are needed to meet production in August, what is the estimated raw materials inventory balance at the end of July? Raw material inventory balance 10. What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced? Total direct labor cost 11. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour what is the estimated unit product cost? (Round your answer to 2 decimal places.) Unit product cost 12. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour what is the estimated finished goods inventory balance at the end of July? Ending finished goods inventory
Required information [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,400, 25,000, 27,000, and 28,000 units, respectively. All sales are on credit. b. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. c. The ending finished goods inventory equals 20% of the following month’s unit sales. d. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound. e. Twenty percent of raw materials purchases are paid for in the month of purchase and 80% in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. g. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $64,000 13. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour what is the estimated cost of goods sold and gross margin for July? Estimated cost of goods sold Estimated gross margin 14. What is the estimated total selling and administrative expense for July? Total selling and administrative expenses 15. If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $10 per direct labor-hour what is the estimated net operating income for July? Net operating income
Dividends on Preferred and Common Stock Pecan Theatre Inc. owns and aperates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $20,000; Year 2, $40,000; Year 3, $120,0o0; Year $130,000; Year 5, $144,000; and Year 6, $160,000. Durina the entire period ended December 1 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred stock, $100 par, and 100,000 shares common stock, $20 par Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of t t the beginning of Year 1. Summarize the data in tabular form. vears. There were. dividends in arears Note: If required, round vour answers to two decimal places, If the amount is zero, enter “o Preferred Dividends Common Dividends Total Total Year Dividends Per Share Total Per Share 0.8 V 20,000 s 20.000 1.6 v 40,000 v Year 2 40,000 120.000 130,00C Year 5 144,000 Year 6 160,000 2. Determine the average annual dividend per share for each class of stock for the six-vear period, If required, round vour answers two decimal places Average annual dividend for preferred per share ner share Average annual dividend for common r preferred stock and for common stock. 3. Assuming a market price per share of $140 for he preferred stock and $13 for the common stock, determine the average annual percentage return on initial shareholders’ investment, based on the average annual dividend per share e the rounded amounts from part 2 in future computations. And round your final answers to two decimal places Preferred stock Common stock Fedback
Keep Old Buy New Total avoidable costs Should the machine be replaced?
: Additional Valuation Issues E9.4 (LO1) (LCNRV-Journal Entries) Dover plc began operations in 2019 and determined t ending inventory at cost and at LCNRV at December 31, 2019, and December 31, 2020. This informs tion is presented below. Net Realizable Value Cost £322,000 390,000 12/31/19 12/31/20 £346,000 410,000 Instructions Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-gocds.eld a. method. b. Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming inventory is recorded at cost and a perpetual system using the loss method. c. Which of the two methods above provides the higher net income in each year?
Paragraph Font Credit Debit 10.500 150,000 Cash Accounts receivable Allowance for uncollectible accounts Prepaid reat Loventory Equipment Accumulated depreciation-equipment Accounts payable Notes payable-due in three montghis Salaries payable Interest payable Share capital Retained earnings 10,000 5.000 25,000 300,000 125,000 20,000 30,000 4.000 1,000 200,000 50,000 400,000 Sales revenue 180,000 120,000 15,000 30,000 2,000 2.500 840,000 Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Bad debt expense Totals 840,000
Get college assignment help at uniessay writers Case 8-69 Keep or Drop Jan Shumard, president and general manager of Danbury Company, was concerned about the future of one of the company’s largest divisions. The division’s most recent quarterly income OBJECTIVE 12 statement follows: $3,751,500 ls M 2,722,400 no Sales Less: Cost of goods sold Gross profit Less: Selling and administrative expenses Operating (loss) $1,029,100 1,100,000 $ (70,900) Jan is giving serious consideration to shutting down the division because this is the ninth con- secutive quarter that it has shown a loss. To help him in his decision, the following additional information has been gathered: The division produces one division sells 50% of its output to another division within the company for $83 per unir (full manufacturing cost plus 25%). The internal price is set by company policy. If the division is shut down, the user division will buy the part externally for $100 per unit. The fixed overhead assigned per unit is $20. There is no alternative use for the facilities if shut down. The facilities and equipment will be sold and the proceeds invested to produce an annuity of $100,000 per year. Of the fixed selling and administrative expenses, 30% represent allocated expenses from corporate headquarters. Variable selling expenses are $5 per unit sold for units sold externally. These expenses are avoided for internal sales. No variable administrative product at a selling price of $100 to outside parties. The expenses are incurred. Required: 1. Prepare an income statement that more accurately reflects the division’s profit performance. 2. Should the president shut down the division? What will be the effect on the company’s profits if the division is closed?
5 Assuming thet the company allocates its underfover-allocated overhead besed on mfg everhead in the ending balances in WIP, FG, and COGS, caleulate the amount to be a to each account for Department A only. The vaoe of ending baances are workinPrecess $1,000, Finished goods $9,000 and Cost of goods sold: 5 18,000. (4 marks) cated Prepare the journal entry to record the allocation of the under/over allocated overhead. 2 marks) Question # 5:(Marks: 15) High Tech Company manufactures two models of cordless phone-Unique Model and Deluxe Model. Data relating to the two product lines are as follows Unique Model 50,000 units Deluxe Model 150,000Units $28.64 per unit. $10.86 per unit Expected production Direct material cost $12.14 per unit Direct labour cost $10.86 per unit High Tech is considering implementing an activity-based costing (ABC) system in its plant and has identified four primary activities. Data on these activities are as follows: Budgeted Cost $44,000 $875,000 $630,000 $80,000 Unique Model 50 setups 30,000 machine-hours 5,000 inspection-hours 125 shipments Deluxe Model Equipment setup Machine processing Quality control Packaging/shipping 30 setups 220,000 machine-hours 10,000 inspection hours 75 shipments equired: 1. Calculate the manufacturing overhead allocation rate for each activity using ABC. (4 Marks) 2. Compute the unit cost of each model of phone using ABC. (6 Marks) 3. Assume the company currently allocates overhead on the basis of tirect labour costs. Compute the unit cost of each model of phone using this method.(5 Marks)
5- A merchandiser using the gross method sold goods on account to Customer A for AED 8,000 with terms of 2/10 n/30. if the payment is received within the discount period Acconts Receivable is decreased by AED 6- Which of the following inventory costing methods results in the highest value of the ending inventory during a period of rising inventory costs. FIFO, LIFO, Averge? The bank made an EFT payment of a telephone bill of AED 5,000. How would this 7- information be included on the bank reconciliation? Add or Subtract (Both must be correct for credit) From Bank or Book side
8- The accounts receivable turnover ratio for a merchandiser is 9.6 times. Calculate the days’ sales in receivables for the merchandiser. (Round your answer to the nearest day.) Days
Durable Equipment Company uses the periodic inventory system. Durable reported 9- the following selected amounts at June 30, 2019 (the beginning inventory balance is also provided) (8 points, 4 Pts.ea) AED Merchandise Inventory, July 1, 2018 22,00 Merchandise Inventory, June 30, 2019 19,000 Purchases 96,000 Purchase Discounts 5,000 Purchase Returns and Allowances 8,500 Freight In 3,200 Net Sales Revenue 212,400 Delivery Expense 1,400 Sales Salaries Expense 44,200 Common Stock 45,000 Retained Earnings 24,500
Brief Exercise 24-1 Rihanna Company is considering purchasing new equipment for $453,600. It is expected that the equipment will produce net annual cash flows of $54,000 over its 10-year useful life. Annual depreciation will be $45,360. Compute the cash payback period. (Round answer to ! decimal place, e.g. 10.5.) Cash payback period vears
10. A company purchased 90 units for AED 20 each on January 31. It purchased 180 units for AED 25 each on February 28. It sold 180 units for AEO 60 each from March 1 through December 31. If the company uses the first-in, first-out inventory costing method, what is the amount of Cost Of Goods Sold on the income statement for the year ending December 31? (Assume that the company uses a perpetual inventory system.) All in AED, no conversion necessary. (20 Points) Total costs Unit Cost Date Quantity $20 $1,800 90 Jan. 31 Feb. 28 $25 4,500 180 $6,300 Total 270 10a Using FIFO. calculate the Ending Inventory on 31 December. AED, (3 pts) Using FIFO, calculate the Cost of Goods Sold on 31 December. AED, 10b (3 pts) 10c Using LIFO, calculate the Ending inventory on 31 December. AED (3 pts) Using LIFO, calculate the Cost Of Goods Sold on 31 December. AED 10d (3 pts) 10e. Using Average Method, calculate the Ending Inventory on 31 December (3 pts) AED 10f. using Average Method, calculate the Cost of Goods Sold on 31 December (3 pts) AED Of the above methods used, which would give me the highest gross profit. 10g FIFO. LIFO, Average? (2Pts)
11. The following information is needed to reconcile the cash balance for Natural Landscaping Services A deposit Of AED 5,800 is in transit. Outstanding checks total AED 1,500. The book balance is AED 6,800 at February 28, 2019 The bookkeeper recorded AED I, 740 check as AED 17,400 in payment of the current month’s rent The bank balance at February 28, 2019 was AED 18,000. A deposit of AED 400 was credited by the bank for AED 4,000. A customer’s check for AED 3,700 was returned for nonsufficient funds The bank service charge is AED 60. Based on this information, prepare a bank reconciliation for Natural Landscaping Services as of 1 February 28, 2019. (25 points)
Brief Exercise 24-3 Thunder Corporation, an amusement park, is considering a capital investment in years. It will be sold for $64,800 at that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $25,800. The company’s borrowing rate is 8%. Its cost of capital is 10%. Click here to view PV table new exhibit. The exhibit would cost $215,619 and have an estimated useful life of 15 Calculate the net present value of this project to the company and determine whether the project is acceptable. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.) Net present value acceptable. The project Open Show Work Click if you would like to Show Work for this question:
Multiple Choice Questions Identify the letter of the choice that best completes the statement 11. If fixed costs are $250,000, the unit selling price is $20, and the unit variable costs are $16, what is the break-even sales (units) if fixed costs are increased by $40,000? a. 52,500 units b. 60,500 units c. 72,500 uniits d. 62,500 units 12. When the maturities of a bond issue are spread over several dates, the bonds are called a. serial bonds b. bearer bonds C. debenture bonds d. term bonds 13. If $1,000,000 of 8 % bonds are issued at 102 1/2, the amount of cash received from the sale is a. $1,080,000 b. $975,000 c. $1,000,000 d. $1,025,000 14. The statement of cash flows reports a. cash flows from operating activities b. total assets total changes in stockholders’ equity c d. changes in retained earnings 15. A business received an offer from an exporter for 20,000 units of product at $15 per unit. Acceptance of the offer will not affect normal production or domestic sales prices. The following data are available Domestic unit sales price $21 Unit manufacturing costs
Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $239,855. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7: Year 1 $389,000 400.900 2 3 411,000 4 425,700 432,400 435,400 7 436,900 The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage value is expected maintenance costs of $94,400 at the end of the fifth year. The cost of capital be $380,600. This new equipmment would require Text 9%. Click here to view PV table. Use the net present value method to determine the following: (If net present value is negative then enter with negatlve sign preceding the number e.g. -45 or parentheses e.g. (45). Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use decimal places as displayed in the factor table provided.) Calculate the net present value. Net present value Determine whether Hillsong should purchase the new machine to replace the existing machine?
The post Question: Kanye Company Is Evaluating The Purchase Of A Rebuilt Spot-welding Machine To Be Used In The Manufacture Of A New Product. The Machine Will Cost $176,000, Has An Estimated Useful Life Of 7 Years, A Salvage Value Of Zero, And Will Increase Net Annual Cash Flows By $36,152. Click Here To View PV Table. Its Approximate Internal Rate Of Return? (Round Answer … appeared first on uniessay writers.