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December 2018

If a company uses the indirect method to prepare the statement of cash? flows, which of the fol…

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If a company uses the indirect method to prepare the statementof cash? flows, which of the following items would be subtractedfrom net income to determine the net cash flow from operating?activities?A.Depreciation expense would be subtracted from net income todetermine the net cash flow from operating activities in thestatement of cash flows.B.An increase individends payable would be subtracted from net income to determinethe net cash flow from operating activities in the statement ofcash flowC.Amortization of apremium on bonds payable would be subtracted from net income todetermine the net cash flow from operating activities in thestatement of cash flowD.A loss on thesale of equipment would be subtracted from net income to determinethe net cash flow from operating activities in the statement ofcash flow

Compare the statement of cash flows with income statement, using terms of net income and cash at …

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Compare the statement of cash flows with income statement, usingterms of net income and cash at end of the year.just in general. just need a comparison.

Company would like to buy a new piece of equipment for a project which is expected to last for 10…

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company would like to buy a new piece of equipment for a projectwhich is expected to last for 10 years. the costs and benefits areexpected to increase with the inflation rate. based on theinformation what annual worth can the company expect from themachine.Initial Cost $75,000MARR 10%Inflation rate 4%Life of machine 6 yearsproject life 10 yearsmachine value today with life of 4 years: $45000machine value today with life of 6 years: $20000First year costs: $10,000First year benefits: $50,000

Company X has been contracting its overhauling work to Company Y for $44,000 per machine per year…

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Company X has been contracting its overhauling work to Company Yfor $44,000 per machine per year. Company X estimates that bybuilding a $492,000 maintenance facility with a life of 20 yearsand a salvage value of $62,000 at the end of its life, it couldhandle its own overhauling at a cost of only $10,000 per machineper year. What is the minimum annual number of machines (as aninteger) that Company X must operate to make it economicallyfeasible to build its own facility? (Assume an interest rate of14%.) Hint: calculate the annual equivalent cost of the maintenancefacility.

A company developed the following per-unit standards for its product: 2 pounds of direct material…

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A company developed the following per-unit standards for itsproduct: 2 pounds of direct materials at $3.50 per pound. Lastmonth, 2,000 pounds of direct materials were purchased for $6,000.The direct materials price variance for last month was$15,000 unfavorable.$6,000 favorable.$1,000 favorable.$3,000 favorable.

A company issued five-year, 7% bonds with a par value of $250,000. The market rate when the bonds…

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A company issued five-year, 7% bonds with a par value of$250,000. The market rate when the bonds were issued was 6.5%. Thecompany received $284,250 cash for the bonds. Using thestraight-line method, the amount of recorded interest expense forthe first semiannual interest period is:A) $19,897.50B) $5,325.00C) $17,500.00D) $9,948.75E) $8,750.00

The company did not dispose of any property, plant, and equipment, any bonds payable or repurchas…

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The company did not dispose of any property, plant, and equipment, any bonds payable or repurchase any of its own common stock during the year. The company declared and paid a cash of dividend of $13. Prepare a statement of cash flows in good form using the indirect method.

A company employs a standard costing system. The following data are available for February. Actua…

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A company employs a standard costing system. The following dataare available for February.Actual direct labor hours worked……..6500Standard direct labor rate….$8 per hrlabor rate variance…….26000 favorable.With steps, the actual direct labor rate for February is?

A company ended 2014 with cash of $50k, accounts receivable of $100k and inventory of $300k. Prop…

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question.is.clear.and.correct A company ended 2014 with cash of $50k, accounts receivable of $100k and inventory of $300k. Property, plant and equipment were valued at their original cost of $470k, less accumulated depreciation of $170k. Current liabilities other than income taxes owed were $120k, long-term debt was $250k. Stockholders’ equity consisted of (a) $90k capital stock investment and (b) accumulated earnings which had totaled $130k at the end of 2013. Net sales for 2014 were $90k. Expenses including $500k as cost of goods sold, $50k as allowance for depreciation, $85k as selling expense, and $65k as G&A expense. Interest income and expense were $5k and $25k, respectively, and income taxes for the year (unpaid at year’s end) were $80k. Dividends of $20k were paid. Prepare a balance sheet and an income statement reflecting these figures. Also calculate/comment on ratio values: (a) Acid-test ratio; (b) Asset turnover; (c) Profit margin

The Company exchanged $10,000 and equipment that cost $66,000 and has accumulated depreciation of…

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The Company exchanged $10,000 and equipment that cost $66,000 and has accumulated depreciation of $30,000 for equipment with a fair value of $48,000. The Company has determined that the exchange has commercial substance.