Investment Outlay

Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $19 million, and production and sales will require an initial $4 million investment in net operating working capital. The company's tax rate is 30%.

1. What is the initial investment outlay? Write out your answer completely. For example, 2 million should be entered as 2,000,000.
   $   
   
2. The company spent and expensed $150,000 on research related to the project last year. Would this change your answer?
   -Select-Yes No Item 2
   
3. Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $1.5 million after taxes and real estate commissions. How would this affect your answer?
   The project's cost will -Select-increase decreasenot changeItem 3.

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.40 per car washed.

Required:

Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Incentive Structure (25 pt)

On 1/1/2019, Firm XYZ signs a debt contract. According to the debt contract, Firm XYZ raises $100,000 from an investor and promises to pay the investor $100,000 on 1/1/2020 (i.e., the interest rate is zero). On 1/2/2019, Firm XYZ finds that there are two investment opportunities, and each project costs the firm $100,000:

Project 1: $400,000 with probability 0.4 and $0 with probability 0.6

Project 2: $200,000 with probability 1.

i) Which project exhibits a higher NPV? (4 pt)

ii) Which project does the firm prefer? (7 pt) Firm prefers project 1 because

iii) How about debtholders? (7 pt) Debtholders would prefer project 2 because

iv) Suppose that, on 1/1/2019, the investor knows that the firm will choose a project between project 1 and 2. Would the investor choose to sign the debt contract? (7 pt)

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:

* $3 per unit variable; $254,000 fixed each year.

The company’s $39 unit product cost is computed as follows:

Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.

Production and cost data for the first two years of operations are:

Required:

1. Using variable costing, what is the unit product cost for both years?

2. What is the variable costing net operating income in Year 1 and in Year 2?

3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

i need a research paper talk about how important for the accounting student to study Computrized Accounting Course OR the importance of Compurtized Accounting course .

Please provide the link of the research paper, i would write the wording in my own i just need a help thank you for the help..

Camden Biotechnology began operations in September 2018. The following selected transactions relate to liabilities of the company for September 2018 through March 2019. Camden’s fiscal year ends on December 31. Its financial statements are issued in April.

2018

1. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $19,000,000 at the bank’s prime rate (12.5% at the time). The company will pay no commitment fees.
2. On October 1, borrowed $16 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 12% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note.
3. Received $3,500 of refundable deposits in December for reusable containers used to transport and store chemical-based products.
4. For the September–December period, sales on account totaled $4,140,000. The state sales tax rate is 3% and the local sales tax rate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.)
5. Recorded the adjusting entry for accrued interest.

2019

6. In February, issued $12.4 million of 10-year bonds at face value and paid the bank loan on the March 1 due date.
7. Half of the storage containers covered by refundable deposits were returned in March. The remaining containers are expected to be returned during the next six months.

Required:

2. Prepare the current and long-term liability sections of the December 31, 2018, balance sheet. Trade accounts payable on that date were $347,000.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Prepare the current and long-term liability sections of the December 31, 2018, balance sheet. Trade accounts payable on that date were $347,000. (Enter your answers in whole dollars.)

Taxpayer places in service new equipment for $800,000 (7 year property) on August 15, and elects immediate expensing of the maximum amount:

2016 2018

Cost of equipment

179 deduction

additional first year depreciation

amount subject to MACRS (MACRS rate .1429)

Total cost recovery allowed in 2016

What is same facts but under 2018 law?

Create a simple Chart of Accounts for an owner/ operator business such as a lawn mowing round and also mention how the opening balance for each cost centre/ account can be established? Discuss in 80–100 words.

The Stryker Baseball Bat Company manufactures wooden and aluminum baseball bats at its plant in New England. Wooden bats produced for the mass market are turned on a lathe, where a piece of wood is shaped into a bat with a handle and barrel. The bat is cut to its specified length and then finished in subsequent processes. A specific style of wooden bat is supposed to have a mean barrel circumference of 9 inches with ±0.5 inches tolerance at its thickest point.

The company is trying to buy a new machine to cut the bats due to a projected increase in sales. There are three different candidate machines that the company is trying to buy at different costs. The following table summarizes the process average, process standard deviation (SD), and purchase cost of each machine. Which machine, if any, should the company purchase (they are trying to buy the cheapest machine that can get the job done)?

1. Determine the Upper Specification Limit.
2. Determine the Lower Specification Limit.
3. Calculate the process capability index of machine 1.
4. Based on process capability index of machine 1, is machine 1 capable?
   1. Yes
   2. No
5. Calculate the process capability index of machine 2.
6. Based on process capability index of machine 2, is machine 2 capable?
   1. Yes
   2. No
7. Calculate the process capability index of machine 3.
8. Based on process capability index of machine 3, is machine 3 capable?
   1. Yes
   2. No
9. Which machine should the company purchase?
   1. Machine 1
   2. Machine 2
   3. Machine 3
   4. None of these

WRITE A RESPONSE TO THE FOLLOWING !

The primary objective of financial accounting is to provide accurate financial information. Accounting supplies managers and owners with significant financial data that is useful for decision making. The accounting professional must take the time to carefully access and balance the company or enterprise financial aspects. They must be willing to learn about the resources available while understanding ways to grow based off of past company performance. Internal users: are individuals who use accounting information from within an Organization. An example of an internal user is a store manager. Some of the ways internal users employ accounting information include: Assessing how management has discharged its responsibility for protecting and managing the company’s resources · Shaping decisions about when to borrow or invest company resources · Shaping decisions about expansion or downsizing External users: are individuals that have a financial interest in the reporting aspect of the business. However, they are not involved in the day to day operations. An example of an external user is a supplier or a customer. The external users of accounting information fall into six groups: Owners and prospective owners Creditors and lenders : banks and lending institutions Employees and their unions. Governmental units: tax returns, and other documents General public The integrity of financial reporting is the most important trait to have as a professional in any field. There is heavy reliance on integrity by the people who want to be sure that their information and finances will be handled with confidentially. There are a few Christian valuesthat promote integrity in internal financial reporting: Proverbs 16:8 “Better is a little with righteous than great revenues with injustice." Exodus 20:15 You shall not steal."

What are two reports that can be used to reconcile a cash register? Explain (50–80 words) the distinguishing features of each.

3) Training Programs, Revisited As part of a quality improvement initiative, Consolidated Elec- tronics employees complete a three-day training program on teaming and a two-day training program on problem solving. The manager of quality improvement requested that at least 10 training programs on teaming and at least 10 training programs on problem solving be offered during the next six months. In addition, senior-level management specified that at least a total of 25 training programs must be offered during this period. Consolidated Electronics uses a consultant to teach the training programs. During the next six months, the consultant has 64 days of training time available. Each training program on teaming costs $12,000 and each training program on problem solving costs $6,000.

(a) How many training programs of each type should be offered? What would be the total cost of this? (3 points)

(b) Would the optimal number of training programs for each type change if the cost of problem solving trainings went up by $5000? Why or why not? (2 points).

(c) If management decided to relax the total number of trainings necessary by 3 to only 22 total trainings, what would you expect the reduction in cost to be? (2 points)

4. The division managers were able to provide reliable sales percentages for their product lines by geographical area.

Murphy prepared the following product-line income statement based on the data presented above.

1. Prepare a segmented income statement for Pacific Rim Industries based on the company’s geographical areas. The statement should show the operating income for each segment. (Do not round your intermediate calculations and round your final answers to the nearest dollar amount.)

Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,000 of indirect materials and $11,200 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $10,200 Direct materials $21,000 Direct labor 8,000 Direct labor 15,400 Factory overhead 6,080 Factory overhead 11,704 Total $24,280 Total $48,104

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JOURNAL

CHART OF ACCOUNTS Old School Publishing Inc.General Ledger