Case ScenarioOver the past four years, the LSS organization, a nonprofit organization headquartered in Minneapolis, MN, has become renowned nationally for its Camp Noah project. Following floods, tornadoes or other weather emergencies, children lose their daily routine, their schools and oftentimes their homes. Parents are often stressed and unavailable during emergencies, and children have few resources to help them understand their situation. In Camp Noah, volunteers with skills in child psychology and counseling meet in a two day support group environment with children in flood ravaged areas. They encourage the children to share their stories and develop important resiliency skills and learn how to cope emotionally with the disaster.Due to the need for such services, LSS has developed a training system that lets them partner with resource organizations located near flood or tornado areas. They have partnered with many local organizations around the U.S. to train, equip and empower volunteers to staff local camps attended by children during their summer vacation. LSS also provides pre-packaged Camp Noah supplies that range from workbooks, crayons and puppets to a quilt for each child.Recently, powerful rainstorms in southeastern France triggered flash flooding that displaced more than 1000 families, and left 200,000 people without electricity for more than two weeks. City officials in France called the LSS Director of Camp Noah Services, Chris Walker, and asked if she could provide training and equip 20 volunteers in southeastern France to deliver the Camp Noah curriculum to up to 500 children. The French officials have asked that a decision to proceed be made within 2 weeks, and that the training and they want the equipment be delivered 6 weeks after the decision is made. Chris Walker wants to help but isn’t sure how to start. Currently, Camp Noah supplies are all written in English, and the counselor training documents are only written in English as well. The floods occurred in an area of France that has few English speakers.You are a contract employee who has been engaged to help LSS because you speak French fluently and because you are an expert, experienced project manager with great interpersonal skills. Your job is to assist the director, Chris Walker, during project initiation. If the project is approved, you may be asked to lead the remainder of the project as well. You and Chris have been in meetings together all day discussing the opportunity for a French Camp Noah. You’ve been listening very carefully and asking dozens of questions about the potential effort. Now, you’re ready to get started and put your considerable project management skills and knowledge to work.Questions based on above scenario and answer need to be 1/2 page long:1. Is this (or will this be) a project or operations? Justify your choice.2. What process group is this project currently in? How do you know?3. As an experienced project manager, you are aware that analyzing the environment in which a project operates is critically important. Select two (2) OPA and two (2) EEF that you believe are important to understand for this project. Apply these to the case scenario and justify why the four items you selected are important. 4. Once the decision is made to proceed with the project, Chris Walker, the director, will need to select a project manager. You know that LSS is a strong-matrix org. What does this mean in terms of how the project will be conducted and the role of the project manager? (5. You and Chris Walker, the director, will work on trying to define what project success will look like as you define the project objectives. What should you keep in mind about the process of writing objectives? Why are good statements of project objectives important to project success?

Answers

Answer 1

Answer and Explanation:

1. This is a project because it is carefully planned and follows a series of tasks to achieve a particular goal

2. Project is at initiation stage. It is yet to be approved and discussions are still on

3. Two organizational process assets (OPA) are : checklist, lessons database. Two Enterprise environmental factors(EEF): Organization management, group performance. EEF enable project managers understand their environment and factors that influence the project which may be beyond their control. OPAs here will enable organization learn from the knowledge base and everything other thing already acquired by management that can be used in the project or from projects initially executed by organization

4. Since LLS is a matrix organization(answering to both functional head and project manager), employees involved in the project would answer to project manager and project manager reports to functional head

5. The important to have in mind while writing project objectives is the goal of the project while considering threats and opportunities surrounding reaching the goal of the project. Clear objectives are important as they form guidelines to achieving project goal.


Related Questions

Fethe's Funny Hats is considering selling trademarked, orange-haired curly wigs for University of Tennessee football games. The purchase cost for a 2-year franchise to sell the wigs is $20,000. If demand is good (40% probability), then the net cash flows will be $26,000 per year for 2 years. If demand is bad (60% probability), then the net cash flows will be $3,000 per year for 2 years. Fethe's cost of capital is 13%. Do not round intermediate calculations.

Required:
a. What is the expected NPV of the project?
b. if Fethe makes the investment today, then it will have the option to renew the franchise fee for 2 more years at the end of Year 2 for an additional payment of $20,000.

Answers

Answer:

$350

Explanation:

We can calculate the expected NPV by calculating the present value of future cash flows first and then deduct these cash flows from the initial investment.

DATA

Inital Investment = $ 20,000

cost of capital = 13%

Calculation

Expected Cash flow for year 1   = $ 26,000 x 40% =  10,400

Expected Cash flow for year 2 =  $3,000 * 0.6 =  1800

Expected cash flow = 12,200

Present value of future cash flows = $12,200/1.13 + $12,200/(1.13)^2

Present value of future cash flows = $10,796 + $9,554

Present value of future cash flows = $20,350

Expected NPV of the project = Present value of future cash flows - Initial Investment

Expected NPV of the project = $20,350  - $20,000 = $350

Requirement B

Present value of future cashflows = 20350

Present value of renewal in year2 = 20,000/(1.13)^2 = $15,673

Inital  = $20,000

NPV = 20,350 - 20,000 - 15,673

NPV = -15,323

Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Pana has provided the following analysis of price and cost for the contracts: Hjalmarsson, the customer, may cancel both contracts if either of them is not fulfilled by Panarin in a timely manner. Stand-alone prices are typically $120,000 for the goods in Contract A and $80,000 for the goods in Contract B.
Required:
1. Should the two contracts be combined for purposes of applying the 5-step revenue recognition model?
2. What amount of revenue should Panarin associate with each of the contracts?
3. When should revenue be recognized on each of the contracts?

Answers

Here are some missing parts of your question.

contract price for a = 125,000, for b = 80,000

cost of related goods for a = 70,000 for b = 55,000

Explanation:

1. Both contracts should be combined  for the the purpose of applying this model. so the answer is yes

2.

120000 + (5000 x 60%)

= 120000 + 3000

= $123000

80000  (5000 x 40%)

= 80000 + 2000

= $82000

from the question we were told that prices for Contract A is $120,000 while prices for Contract B is $80,000. the Contract price of Contract A put  to be $125,000. so we have $5,000 more that should be shared between the contracts a and b. so the obligations for goods from A is calculated to be  $123,000 and tht of contract B is $82,000.

c.

when control of goods is shifted to customer then the revenue has to be recognized

When an organization tries to influence the adaptation of individuals, the process of _____ is occurring. Group of answer choices encounter socialization individualization metamorphosis

Answers

Answer:

B. socialization

Explanation:

Socialization can be defined as the process in which individuals learn to behave in a morally acceptable way or manner, acquire values, attitudes and habits that are in tandem with the environment where they found themselves such as an organization.

Hence, when an organization tries to influence the adaptation of individuals, the process of socialization is occurring.

1. All receivables that are expected to be realized in cash within a year are reported in the __________ section of the balance sheet. current assets investments noncurrent assets current liabilities

Answers

Answer:

A. current assets

Explanation:

In Financial accounting, Accounts Receivable are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.

Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.

Hence, receivables are current assets on the balance sheet, which are listed in order of liquidity.

All receivables that are expected to be realized in cash within a year are reported in the current assets section of the balance sheet.

. A consumer electronics company introduced a new music system into the market with multiple features like built in alarm, mobile and iPod charger, radio and many more. The company is trying to influence the _____ perspective of quality by providing multiple features in a single

Answers

Answer:

a. product

Explanation:

Since in the question it is mentioned that the consumer electronics company launched a new music system that contains the various features like alarm, mobile & iPod charger, radio and etc

So here the company wants to influence the product by displaying the features of the company so that the chances of sale of the product could be high

Therefore the option a is correct

Given the following information regarding an income producing property, determine the internal rate of return (IRR) using levered cash flows. Expected Holding Period: 5 years; 1ˢᵗ year Expected NOI: $89,100; 2ⁿᵈ year Expected NOI: $91,773; 3ʳᵈ year Expected NOI: $94,526; 4ᵗʰ year Expected NOI: $97,362; 5ᵗʰ year Expected NOI: $100,283; Debt Service in each of the next five years: $58,444; Current Market Value: $885,000; Required equity investment: $221,250; Net Sale Proceeds of Property at end of year 5: $974,700; Remaining Mortgage Balance at end of year 5: $631,026.A) 10.6%B) 12.2%C) 22.9%D) 33.4%

Answers

Question options:

A. 10.6%

B. 22.9%

C.33.4%

D.12.2%

Answer and Explanation:

Find attached

Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows:

Direct materials $6
Direct labor 4
Overhead (2/3 of which is variable) 9

Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.

Required:
a. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $2 per unit.
b. Assume that Mazeppa is currently operating at full capacity. To fill the special order, regular customers will have to be turned away. Now what unit price should it charge the distributor if it wishes to increase total operating income by $60,000 more than it would be without accepting the special order?

Answers

Answer:

a. $20.00

b. $28,75

Explanation:

Find the total incremental costs to satisfy the special order and add $2.00 profit (because we are aiming for a profit not to just break-even).

Calculation of Total Incremental Unit Costs

Direct materials                                          $6 .00

Direct labor                                                 $4.00

Variable Overheads (2/3 × $9)                  $6.00

Shipping Cost                                             $2.00

Total Incremental Unit Cost                      $18.00

Add Profit Element                                     $2.00

Unit Selling Price for the Special Order  $20.00

In this case no changes will occur on fixed overheads, hence it is irrelevant.

Calculation of Desired Net Operating Income

Sales ($28 × 160,000 units)                                     $4,480,000

Less Product Costs :

Direct materials ($6 .00 × 160,000 units)                 ($960,000)

Direct labor ($4.00 × 160,000 units)                        ($640,000)

Variable Overheads ($6.00 × 160,000 units)          ($960,000)

Fixed Overheads ($3.00 × 160,000 units)               ($480,000)

Current Operating Income                                       $1,440,000

Add Desired Increase in Operating Income               $60,000

Desired Operating Income                                      $1,500,000

Unit Profit = $1,500,000 ÷ 160,000 units

                  = $9.375

Unit Profit = Unit Selling Price - Total Unit Costs - Unit Incremental Profit

therefore,

Unit Selling Price = Unit Profit  + Total Unit Costs + Unit Incremental Profit

                             = $9.375 + $19.00 + $0.375

                             = $28,75

On January 1, 2021, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued $400 in long-term liabilities and also issued 40 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows:
Moody Osorio
Cash $180 $40
Receivables 810 180
Inventories 1,080 280
Land 600 360
Buildings (net) 1,260 440
Equipment (net) 480 100
Accounts payable (450) (80)
Long-term liabilities (1,290) (400)
Common stock ($1 par) (330)
Common stock ($20 par) (240)
Additional paid-in capital (1,080) (340)
Retained earnings (1,260) (340)
Note: Parentheses indicate a credit balance.
In Moody's appraisal of Osorio, three assets were deemed to be undervalued on the subsidiary's books: Inventory by $10, Land by $40, and Buildings by $60. Compute the amount of consolidated inventories at date of acquisition.
A. $1,080.
B. $1,420.
C. $1,065.
D. $1,425.
E. $1,440.

Answers

Answer:

$1,370

Explanation:

IFRS 3 states that Acquirer is deemed to have taken over the Assets and Liabilities at their Acquisition Fair Value in Acquired records.

Therefore,

We need to first revalue the Inventory shown in  Osorio records upwards by $10.

Then we combine 100% of Moody`s Inventory with 100% of Osorio fair valued Inventory.

Calculation of Consolidated Inventory Balance

Moody`s Inventory                                     $1,080

Osorio fair valued Inventory (280 + 10)      $290

Inventory Balance                                      $1,370

Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report.

October 31 (in millions) 2007 2006
Accounts receivable, net $13,420 $10,873

HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts.

For the fiscal years ended October 31 (in millions)

2007 2006 2005
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period $220 $227 $286
Increase in allowance from acquisition 245 3 4
Addition of bad debts provision 32 37 17
Deductions, net of recoveries (29) (48) (76)
Balance, end of period $226 $220 $227

Required:
a. What is the gross amount of accounts receivables for HPQ in fiscal 2007 and 2006?
b. What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2007 and 2006?
c. What amount of bad debts expense did HPQ report each year 2007 through 2006? What amount was actually written off?

Answers

Answer:

The answer is below

Explanation:

Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report. We have the following:

(a) What is the gross amount of accounts receivables for HPQ in fiscal 2007 and 2006?($ millions)2007, 2006

Gross accounts receivable for year 2007 = $13,646 for year 2006 = 11,093

(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2007 and 2006?(Round your answers to two decimal places.)($ millions) 2007 2006 Percentage of uncollectible accounts to gross accounts receivable for year 2007 =  1.66% for year 2006 =1.98 %

(c)What amount of bad debts expense did HPQ report each year 2005 through 2007? What amount was actually written off? ($ millions)2007, 2006, 2005,

Bad debt expense for year 2007 = $32. Year 2006 = $37.   Year 2005 = $17

Amount actually written off for year 2007 = $29.  Year 2006 = $48 Year 2005 = $76

Each of these is a key element of goal setting:
specific
intelligent
time-bound
measurable

Answers

Answer: Specific, Time-bound, measurable

Explanation: Trust me ;)

You hit the lottery! You get offered $10 million now or $1 million a year for 13 years. Assume a 3 percent interest rate. Which would you choose and why

Answers

Answer:

I would choose to receive $1 million for 13 years because the present value of the cash flows is greater than 10 million

Explanation:

To determine which option i would choose, i have to calculate the present value of the second option

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 13 = $1 million

I = 3%

Present value = $10,634,955

I would choose to receive $1 million for 13 years because the present value of the cash flows is greater than 10 million - $10,634,955 > $10,000,000

To find the PV 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

Option 2 should be considered since it contains more amount of present value as compared to option 1.

Calculation of the present value:

In option 1, it offered $10 million or $10,000,000

While in option 2, the interest rate is 3% and the time period is 13 years Also, the payment is $1 million

So here we need to determine the present value

PV = PMT x (1 - (1+i)-n / i )

PV = 1,000,000 x (1 - (1+0.03)-13 / 0.03 )

PV = 10,634,955.33

Based on this, the option 2 should be considered.

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Sadie Equestrian Services established a petty cash fund in the amount of $500 on June 1, 2013. On June 30, a review of the petty cash vouchers showed disbursements for the following: Stamps $60 Cab Fare for Ms. Sadie to attend meeting downtown $28 Dinner for employees working overtime $185 Messenger Costs for delivering legal documents $54 Advance to salesperson for attending networking event $25 Purchase of emergency office supplies $69. The Petty cash fund had a remaining cash balance of $77. The proprietor, Ms. Sadie also decided to increase the size of the Petty Cash fund to $700. Journalize the following:
a) Transaction to establish
Petty Cash Fund
b) Transaction to replenish
Petty Cash Fund on June 30
c) Transaction to increase the size of the
Petty Cash Fund

Answers

Answer:

a. Date    Description            Debit Credit

1-Jun        Petty cash fund     $500

                    Cash                                  $500

                [To open the petty cash fund]

b. Date   Description                       Debit   Credit

30-Jun    Stamps                               60

               Cab fare                             28

                Dinner expense                185

                Messenger cost                 54

                Advance to sales person  25

                Office supplies                   69

                Cash short and over           2  

                Petty cash fund                                423

                [To replenish the petty cash fund]

c. Date   Description                       Debit   Credit

June 30 Petty cash [$700-$500]  $200  

                Cash                                             $200

               [To increase the petty cash fund]

denver company issued bonds with a face value of 100,000 and stated interest rate of 8%. the bonds have a life of five years and were sold at 102 1/2. if denver amoritizes discounts and premiums using the straight line method, the amount of interest expense each full year would be

Answers

Answer:

$7,500

Explanation:

Calculation for the amount of interest expense each full year

First step is to calculate the the annual interest

Annual interest =$ 8,000

($100,000*8%)

Second step is to calculate the premium paid

Premium paid=$ 2,500

($ 100,000 * 2.5%)

Third step is to calculate the Amortization of premium

Amortization of premium=$500

( $2,500 / 5years )

Last step is to calculate the interest expenses using this formula

Interest expenses=Annual interest-Amortization of premium

Let plug in the formula

Interest expenses ($8,000 - $500 )

Interest expenses= $ 7,500

Therefore the amount of interest expenses each full year would be $7,500

Burke Company has a break-even of $600,000 in total sales. Assuming the company sells its product for $40 per unit, what is its margin of safety in units if sales total $1,000,000

Answers

Answer:

The margin of safety in units is 10,000 units

Explanation:

The computation of the margin of safety in units is shown below:

The Margin of safety in units is

= Budgeted or actual sales - break even sales

= ($1,000,000 ÷ $40 per unit) - ($600,000 ÷ $40 per unit)

= 25,000 units - 15,000 units

= 10,000 units

Hence, the margin of safety in units is 10,000 units

Oct. 1 Stockholders invest $30,000 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $36,000.
3 Buys office furniture for $3,800, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,800 (not paid by Roads at this time).
10 Receives cash of $140 as commission for acting as rental agent renting an apartment.
27 Pays $700 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $3,000 in salary for October.
Required:
Prepare the debit—credit analysis for each transaction.

Answers

Answer:

Debit credit analysis of given journal entries.

Explanation:

1. Cash ac dr , Purchase (common stock) ac cr ... 30000

2. No entry for hiring only , No accrual or cash transaction takes place

3. Furniture ac dr, creditor/ accounts payable (Furniture supplier) ac cr ... 3800

6. Debtor/ accounts recievables (Roads') ac dr, Comission ac cr ... 10800

10. Cash ac dr, Comission ac cr ... 140

27. creditor/ accounts payable (Furniture supplier) ac dr, Cash ac cr ... 700

30. Salary ac dr, Cash ac cr 3000

Countess Corp. is expected to pay an annual dividend of $4.39 on its common stock in one year. The current stock price is $92 per share. The company announced that it will increase its dividend by 3.55% annually. What is the company's cost of equity

Answers

Answer:

8.32 %

Explanation:

With the information provided, we can calculate the company's cost of equity by using the Dividend Growth Model.

Thus,

Cost of Equity = Dividend / Stock Price + Expected Growth

Therefore,

Cost of Equity = $4.39 / $92 + 3.55%

                       = 8.32 %

Which account is an example of a contra-expense account? A. purchases B. purchase returns C. sales D. sales returns

Answers

Answer:

b. purchase returns

An account which is an example of a contra-expense account is purchase returns. The correct option is b.

What is the contra-expense account?

A contra expense account is a general ledger expense account that will intentionally have a credit balance instead of the debit balance that is typical for an expense account. In other words, this account's credit balance is contrary to or opposite of the usual debit balance for an expense account.

Another description of a contra expense account is an account that reduces or offsets the amounts reported in another general ledger expense account. Contra accounts are presented on the same financial statement as the associated account, typically appearing directly below it with a third line for the net amount. Accountants use contra accounts rather than reduce the value of the original account directly to keep financial accounting records clean.

Key examples of contra accounts include accumulated depreciation and allowance for doubtful accounts.

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The readings suggest there are certain strategies for pricing new products, which is decidedly more difficult than adjusting prices to existing products. The new product pricing approaches are:
Skimming
Penetration
Everyday low prices
The pricing approaches discussed for existing products are:
Cost plus
Markup
Markdown
Odd-even pricing
Prestige pricing
Price lining
Demand backward pricing
Leader pricing
Sealed bid pricing
Going-rate pricing
Price bundling
Captive pricing
Product mix pricing
Two-part pricing
Promotional pricing
There is no shortage of pricing approaches, and as customers, we are exposed to all of them at some time or another in our purchasing processes.
Choose one of the pricing approaches and discuss the product, the pricing approach, and why you think it is the most appropriate approach for that particular product given your consumer characteristics. Be sure you understand the definition of your approach before tackling this topic.
Many of you will be tempted to use promotional pricing since it is the easiest to demonstrate. So promotional pricing is not "for sale" (pun intended). Pick one of the other approaches for this topic.

Answers

Answer:

Strategy - Prestige Pricing

Product - Female Bags

Explanation:

Another term for this is Premium Pricing or Image Pricing.

It's a pricing strategy where a product's price is set very high in order to create the impression that it is of very high quality. This strategy is mostly used if it is discovered that keeping the prices low will discourage sales or at best leave it dormant.

In order to use this strategy successfully, the manufacturers always take particular care to differentiate the product by including additional features to the product such as using high-quality materials.

The target market for this product is usually the influencers and love to show off. In order words, they are more particular about their image.

For this strategy to work, the manufacturer has to be consistent in the brand positioning and pay exceptional attention to fine details and finishing. It is also important to target consumers with high spending ability.

A real-world example of a business that uses this strategy is Nike.

Cheers

Firms face competing pressures in the marketplace-how to achieve lower costs through proven approaches to production, while looking at how to maximize their effectiveness in local markets. A firm's choice of strategy must reflect these pressures, and the firm knows that the dynamics of competition may require changes in strategy. Pressures for local responsiveness mean that a firm may not be able to realize the full benefits from economies of scale, learning effects, and location economies. Customization of products brings benefits, but it also limits the firm's ability to realize significant scale economies and location economies. Companies generally choose from four main strategic postures: a global standardization strategy, a localization strategy, a transnational strategy, or an international strategy. The appropriateness of each strategy varies given the competitive realities and the firm's core competences.
Read the case below and answer the questions that follow.
Your firm has been a leader in several lines of fast-moving consumer goods. The firm has been following a localization strategy. Your products have been distributed in a number of foreign markets and regions, and they are distinct enough in local markets to respond to national tastes and preferences. Competition, however, has become more intense, with many competitors using lower cost structures to undercut your prices and still satisfy your customers.
The firm must decide what kind of strategy it needs to follow to meet the demands of the local markets as well as the increased competitive pressures on cost.
a. leverage skills and products associated with a firm's core competencies from one country to another.
b. monitor and adapt to changing customer tastes in a large number of foreign markets.
c. compete effectively in more than one international market.

Answers

Answer:

a. leverage skills and products associated with a firm's core competencies from one country to another.

Explanation:

Company A can still meet the demands of the local markets and the competitive pressures it is facing by utilizing its core competences and deploring its products internationally.  A hybrid of localization and international strategies would be more appropriate.  This hybrid approach will enable the company "to realize the full benefits from economies of scale and learning effects, without losing on location economies," as desired in the case study.

Jeremy Pruitt Ltd is considering the replacement of a delivery truck. The current truck could last for 3 more years. Operating costs are 5000 per year. We are currently depreciating it at 4000 per year. We could sell it at the end of the 3 years for 2000 with a book value of zero. If we purchase the new truck for 32000, we could use three year MACRS. We could sell the old truck now for 7000. Operating costs would drop to 1000 per year. We can sell the new truck for 15000 at the end of the 3rd year. Tax rate is 40%, WACC is 10%. Should we replace the truck?

Answers

Answer: NPV =  - 4433  

As the NPV of the replacement project is negative,

the truck should not be replaced.

Explanation:

                                                                           0               1             2           3

Savings in operating costs (5000-1000):                       4000    4000     4000

Incremental depreciation:-      

Depreciation on the new truck                                      10666    14224    4739

Depreciation on the old truck                                         4000     4000    4000

Incremental depreciation                                                6666     10224    739  

Incremental NOI                                                             -2666      -6224    3261

Tax at 40%                                                                      -1066       -2490    1304

Incremental NOPAT                                                       -1599        -3734   1956

Add: Incremental depreciation                                       6666       10224   739

Incremental OCF                                                             5066       6490   2696

Capital expenditure:-    

Cost of new truck                                        32000    

Less: After tax salvage value of old

NOTE THAT, the book value = 4000*3 =

$12,000 (depreciation per annum is 4000

and three years life is left for the old machine)

truck = 7000 + (12000-7000) × 40% =       9000    

Net initial investment                                  23000    

Incremental terminal salvage value:-    

After tax salvage value of new

truck = 15000 - (15000-2371)× 40% =                                                         9948

Less: After tax salvage value lost on old

truck = 2000 × (1 - 40%) =                                                                            1200

Incremental net residual value                                                                   8748

After tax annual cash flows                       -23000       5066       6490     11444

PVIF at 10%                                                  1           0.90909  0.82645  0.75131

PV at 10%                                                    -23000       4606       5363     8598  

NPV                                                             -4433    

CONCLUSION:      

As the NPV of the replacement project is negative,

the truck should not be replaced.

The bookkeeper for Ivanhoe Company asks you to prepare the following accrual adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
a. Interest on notes payable of $270 is accrued.
b. Services performed but unbilled totals $1,930.
c. Salaries of $700 earned by employees have not been recorded.

Answers

Answer:

      Date     Account titles and explanation   Debit    Credit

(a)  Dec. 31  Interest Expense                            $270  

                           Interest Payable                                     $270

(b)  Dec. 31   Accounts Receivable                     $1,930

                           Service Revenue                                     $1,930

(c)   Dec. 31   Salaries Expense                            $700  

                            Salaries Payable                                     $700

PinaCompany is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows.

Sales: Sales for the year are expected to total 1,200,000 units. Quarterly sales are 20%, 25%, 26%, and 29%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $43 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 15% higher than the budgeted sales for the first quarter of 2017.

Production: Management desires to maintain the ending finished goods inventories at 25% of the next quarter’s budgeted sales volume.

Direct materials: Each unit requires 2 pounds of raw materials at a cost of $10 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter’s production requirements. Assume the production requirements for first quarter of 2018 are 510,000 pounds.

Required:
Prepare the sales, production, and direct materials budgets by quarters for 2017.

Answers

Answer:

where is the question

Explanation:

The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,405,000, $141,000 in the common stock account, and $2,660,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed long-term debt of $1,590,000, $151,000 in the common stock account, and $2,960,000 in the additional paid-in surplus account. The 2016 income statement showed an interest expense of $94,500 and the company paid out $146,000 in cash dividends during 2016. The firm’s net capital spending for 2016 was $970,000, and the firm reduced its net working capital investment by $126,000.
What was the firm's 2016 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Answers

Answer: $589,500

Explanation:

The cash flow to the creditors in 2016 will be calculated as:

= $94,500 – ($1,590,000 - $1,405,000)

= $94,500 – $1,590,000 + $1,405,000

= -$90,500

For the shareholders, the cash flow in 2016 will be:

= $146,000 – [($151,000 + $2,960,000) – ($141,000 + $2,660,000)]

= -$164,000

Capital spending = $970,000

Cash flow due to the net working capital investment = -$126,000

OCF

= -$90,500 + (-$164,000) + $970,000 + (-$126,000)

= $589,500

At the beginning of 2020, Pronghorn Company acquired a mine for $1,732,800. Of this amount, $112,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,600,000 units of ore appear to be in the mine. Pronghorn incurred $190,400 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $44,800. During 2020, 2,718,000 units of ore were extracted and 2,310,000 of these units were sold.

Required:
a. Compute the total amount of depletion for 2020.
b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.

Answers

Answer: a. $434880

b. $369,600

Explanation:

a. Compute the total amount of depletion for 2020.

Depletion Rate can be calculated as:

= (Mine cost - Value of land + Obligation + Development cost)/Ore extracted

= ($1,732,800 - $112,000 + $44,800 + $190,400)/$11,600,000

= $1856000/$11600000

= 0.16

Total amount of depletion for 2020 will now be calculated as:

= Depletion Rate × Ore extracted

= 0.16 × 2,718,000

= $434880

b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.

This will be calculated as the totsl depletion for 2014 divided by the value of the amount of ore that was extracted multiplied with amount of unit sold. This will be:

= (434,880/2,718,000) × 2,310,000

= 0.16 × 2,310,000

= $369,600

Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 20X7, included the following amounts:

Item Mortar Corporation Granite Company


Debit Credit Debit Credit

Cash $38,000 $25,000
Accounts Receivable 50,000 55,000
Inventory 240,000 100,000
Land 80,000 20,000
Buildings and Equipment 500,000 150,000
Investment in Granite Company Stock 202,000
Cost of Goods Sold 500,000 250,000
Depreciation Expense 25,000 15,000
Other Expenses 75,000 75,000
Dividends Declared 50,000 20,000
Accumulated Depreciation $155,000 $75,000
Accounts Payable 70,000 35,000
Mortgages Payable 200,000 50,000
Common Stock 300,000 50,000
Retained Earnings 290,000 100,00
Sales 700,000 400,00
Income from Subsidiary 45,000
$1,760,000 $1,760,000 $710,000 $710,000


Additional Information:

a. On January 1, 20X7, Granite reported net assets with a book value of $150,000 and a fair value of $191,250.
b. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date.
c. Granite's depreciable assets had an estimated economic life of 11 years on the date of combination.
d. The difference between fair value and book value of Granite's net assets is related entirely to buildings and equipment.

Required:
Give all journal entries recorded by Mortar related to its investment in Granite during 20X7.

Answers

Answer:

gouuiydsiuysduitfsdjtydsf iusdtyfdm ssd gthds dhsgsd jsdfgs sdjtsd ngds hgtsd

Explanation:

sdhfd dyhdf jkdfgd fhkdfksdgusbmnj64 uey734n vui8 34bnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnb ky khr uy

Brews 4 U is a local chain of coffee shops. Managers are interested in the costs of the stores and believe that the costs can be explained in large part by the number of customers patronizing the stores. Monthly data regarding customer visits and costs for the preceding year for one of the stores have been entered into the regression analysis.

Average monthly customer-visits 1,462
Average monthly total costs $4,629
Regression results: Intercept $1,496
b coefficient $2.08
R2 0.86814

Required:
a. In a regression equation expressed as y= a + bx, how is the letter b best described?
b. How is the letter y in the regression equation best described?
c. How is the letter x in the regression equation best described?
d. Based on the data derived from the regression analysis, what are the estimated costs for 370 customer-visits in a month?
e. What is the percent of the total variance that can be explained by the regression equation?

Answers

Answer:

Explanation:

a. In a regression equation expressed as y= a + bx, how is the letter b best described?

Here, b is the slope and best described as the estimate of the cost when there's a visit of an additional customer.

b. How is the letter y in the regression equation best described?

The letter y is the observed store cost for that particular month.

c. How is the letter x in the regression equation best described?

The letter x is the observed customer visit for that particular month.

d. Based on the data derived from the regression analysis, what are the estimated costs for 370 customer-visits in a month?

The estimated cost for 370 customer visit will be:

Y = a + bx

where,

a =$1496

b = $2.08

x = 370 customer visit

Y = $1496 + ($2.08 × 370 customer visit)

= $1496 + $769.6

= $2265.6

e. What is the percent of the total variance that can be explained by the regression equation?

The percent of total variance which the regression equation explain will be:

R2 = 0.86814 or 86.814%

The Pet Store experienced the following events for the Year 1 accounting period:________.
1. Acquired $60,000 cash from the issue of common stock.
2. Purchased $65,000 of inventory on account.
3. Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash.
4. Sold inventory on account that cost $38,000 for $71,000.
5. Freight cost on the goods sold in Event 4 was $620. The goods were shipped FOB destination. Cash was paid for the freight cost.
6. Customer in Event 4 returned $4,200 worth of goods that had a cost of $2,150.
7. Collected $58,300 cash from accounts receivable.
8. Paid $59,200 cash on accounts payable.
9. Paid $2,600 for advertising expense.
1. Paid $3,100 cash for insurance expense.
Required:
a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction
b. Record the above events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for NA. investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The beginning balances have been recorded as an example.
Complete this question by entering your answers in the tabs below.
Required A Required B
Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.
Transaction Cost
1
2
3
4
5
6
7
8
9
10

Answers

Answer:

I used an excel spreadsheet since there is not enough room here

Explanation:

         

The purpose of environmental forecasting is to ______. Multiple choice question. collect and interpret data on competitors follow trends in a firm's external environment monitor the external environment predict change

Answers

Answer:

predict change.

Explanation:

Environmental forecasting can be defined as a strategic process which typically involves the management predicting the future characteristics of an external environment of the organization for good decisions making.

Hence, the purpose of environmental forecasting is to predict change.

Environmental forecasting is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.

Generally, the environmental forecasting gives an overview of the opportunities in the market as well as potential threats to an organization.

Hence, the following are descriptive of an environmental forecasting;

1. Used as a tool for corporations to avoid strategic surprise.

2. Used to monitor, evaluate, and disseminate information relevant to the organizational development of strategy.

3. Used to determine a firm's competitive advantage.

4. Used as a tool to ensure a corporation's long-term health.

The shoe buyer plans to promote flip-flop sandals at $24.99. The buyer needs to purchase10,000 flip flops for the event. 6,000 flip-flop sandals have been purchased at a cost of $11.50. The planned markup for the event is 59.0%. What will be the average cost of the remaining sandals?

Answers

Answer:

$22.04

Explanation:

Sales price per sandal = $24.99

Sales price of 10,000 sandals = $24.99*10,000 = $249,900

Markup percentage = 59%

Cost of 10,000 sandals = $249,900 / 1 + 59%

Cost of 10,000 sandals = $249,900 / 1.59

Cost of 10,000 sandals = $157169.81

Cost of 10,000 sandals =        $157,169.81

Less: Cost of 6000 sandals = $69,000   ($11.5*6,000)

Cost of the remaining 4,000   $88,169.81

Average cost of the remaining sandals = $88,169.81/4,000 sandals

Average cost of the remaining sandals = $22.0424525

Average cost of the remaining sandals = $22.04

Laws governing sales are only enacted when the rights of an organization are infringed upon
True
False

Answers

False because I know give brainlessly because I so swag and cool

Answer:

This is true for odyssey-ware

Explanation:

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