• Q : What is the cash-payback period....
    Accounting Basics :

    If an asset costs $70,000 and is expected to have a $10,000 salvage value at the end of its 10 year life and generates annual net cash inflows of $10,000 each year, the cash-payback period is?

  • Q : What effect will acceptance of the offer....
    Accounting Basics :

    It costs Lannon Fieds $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in Mexico offers to purchase 2,000 units at $18 each.

  • Q : How might activity-bases costing result in better decisions....
    Accounting Basics :

    After hearing the consultant's recommendations, the CFO decides to adopt activity-based costing but expresses concern about not allocating some of the overhead to the products (plant administration

  • Q : What is the oil price....
    Accounting Basics :

    What is the oil price, within the $35 to $70 per barrel range, where:the undiscounted Investor Cash Flow of both fields is equivalent

  • Q : Prepare pre-tax income statements under absorption....
    Accounting Basics :

    Prepare pre-tax income statements under absorption and variable costing for the years ending 2010, with any volume variance being charged to Cost of Good Sold. Reconcile the differences in income fo

  • Q : How would you invest in more data acquisition....
    Accounting Basics :

    You are thinking of investing in a field that may have commercial amounts of oil. Based on the existing data of the field you believe there is a 15% chance that if you drilled immediately you would

  • Q : Discuss the population of all sandwich items....
    Accounting Basics :

    You can visit the official website of any large restaurant chain to examine the nutritional data for menu items. For fast-food restaurants, many menu items are high in fat, so most of their calorie

  • Q : Outstanding in the amount....
    Accounting Basics :

    Gabel CO has bonds payable outstanding in the amount of $400,000 and the Premium on Bonds Payable account has a balance of $6,000. Each $1,000 bond is convertible into 20.

  • Q : What is the maximum price you should be willing to pay....
    Accounting Basics :

    Assume that you wish to purchase a bond with a 30-year maturity, an annual coupon rate of 10 percent, a face value of $1,000, and annual interest payments.

  • Q : What is the initial investment outlay....
    Accounting Basics :

    Truman Industries is considering an expansion. The necessary equipment would be purchased for $9 million, and the expansion would require an additional $3 million investment in net operating working

  • Q : How should the preferred stock be reported in the stockholde....
    Accounting Basics :

    WW CO has 10,000 shares of $100 par value, 6% convertible stock and 50,000 shares of $10 par value common stock outstanding at Dec 31, 2010.

  • Q : What is the projects operating cash flow for the first year....
    Accounting Basics :

    If this project would cannibalize other projects by $0.5 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest cent. The firm's OC

  • Q : What is the equipments after-tax salvage value....
    Accounting Basics :

    Kennedy Air Services is now in the final year of a project. The equipment originally cost $22 million, of which 70% has been depreciated. Kennedy can sell the used equipment today for $5.5 million,

  • Q : Calculate the national railway debt....
    Accounting Basics :

    The National Railway Company's total assets in a recent year were $29,011 million and its total liabilities were $13,814 million. That year, National Railway reported operating lease commitments for

  • Q : What are the projects annual cash flows in years....
    Accounting Basics :

    You must evaluate a proposed spectrometer for the R&D department. The base price is $240,000, and it would cost another $36,000 to modify the equipment for special use by the firm.

  • Q : Prepare journal entries using cost method....
    Accounting Basics :

    Arantxa CO has 20,000 shares outstanding of $5 par. On Aug 1, Arantxa Co reaquered 200 shares at $80 per share. On Nov 1, Arantxa Co reisued the 200 shares at $70 per share. No previous treasury st

  • Q : How may the use of statistical sampling assist the auditor....
    Accounting Basics :

    Assuming nonstatistical sampling is used, evaluate the sample results of a test forattributes if authorizations are found missing on 7 check requests out of a sample of 100 tested.

  • Q : Prepare journal entries for each transaction....
    Accounting Basics :

    Nottaway Flooring produces custom-made floor tiles. The company's Raw Material Inventory account contains both direct and indirect materials. Until the end of April 2010.

  • Q : For gore company actual sales....
    Accounting Basics :

    For Gore Company actual sales are $1,116,300 and break-even sales are $770,247. Compute the following (a) the margin of safety in dollars and (b) the margin of safety ratio.

  • Q : Compute the required sales in dollars....
    Accounting Basics :

    For Burns Company, variable costs are 62% of sales, and fixed costs are $171,066. Management's net income goal is $72,210. Compute the required sales in dollars needed to achieve management's targe

  • Q : What is the projected net present value of the project....
    Accounting Basics :

    Antonio's is analysing a project with an initial cost of $64,000 and cash inflows of $40,000 a year for 3 years. This project is an extension of the firm's current operations and thus is equally as

  • Q : Compute the required sales....
    Accounting Basics :

    Logan Corp. had total variable costs of $193,260, total fixed costs of $170,160, and total revenues of $322,100. Compute the required sales in dollars to break even?

  • Q : What is the maximum price that you would pay for a share....
    Accounting Basics :

    You are considering the purchase of zee company stock. you anticipate that the company will pay dividends of $3.50 per share next year and $4.00 per the following year.

  • Q : Street uses the interest method....
    Accounting Basics :

    On January 1, 2004, St. Street Corporation issued $100,000 of ten-year bonds that pay 8% annually on December 31. At the time of issue, the bonds' investors were demanding only a 7%.

  • Q : What is the amount of profit on the sale....
    Accounting Basics :

    JM Company leased equipment from KP Company on July 1, 2004, for an eight-year period expiring June 30, 2012. Equal annual payments under the lease are $200,000.

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