Your firm purchases a machine for $72,662. You purchase the machine using current available cash-balances from a previous period.
You have sales from your retail customers of $289,729. These customers pay with cash.
Your sales from commercial consumers are $31,864. These customers pay with credit.
The cost of your overhead is $17,463 which you pay for with credit.
You have variable costs of $11,658 which you pay for with cash.
Your firm's tax rate is 25%

Finally, you collect on past accounts receivable for $4,536 and pay off past accounts payable for $6,886.

The depreciation schedule is given by:

Depreciation Percentage
Year 1 0.33
Year 2 0.45
Year 3 0.15
Year 4 0.07

What is the free cash-flow in year 1?

Group of answer choices

$135,935.62

$157,845.28

$208,597.62

$186,091.28

Your firm purchases a machine for $95,900. You purchase the machine using current available cash-balances from a previous period. You have sales from your retail customers of $267,000. These customers pay with cash. Your sales from commercial consumers are $33,600. These customers pay with credit. The cost of your overhead is $18,200 which you pay for with credit. You have variable costs of $23,820 which you pay for with cash. Your firm's tax rate is 14% Finally, you collect on past accounts receivable for $1,130 and pay off past accounts payable for $1,150. The depreciation schedule is given by: Depreciation Percentage Year 1 0.33 Year 2 0.45 Year 3 0.15 Year 4 0.07 What is the free cash-flow in year 1? Group of answer choices $145,920.13 $211,389.38 $121,109.38 $115,489.38

The Edward H. & Wael F. (E & W) firm currently sells its product with a 2% discount to customers who pay by cash or credit card when they purchase one of the firm’s products; otherwise, the full price is due within 30 days. Sixty percent of customers take advantage of the discount. The firm plans to drop the discount so the new terms will simply be net 30. In doing so, it expects to sell 150 fewer units per month and all customers to pay at day 30. The E&W firm currently sells 1500 units per month at a cost per unit of $45 and a selling price per unit of $80. If the firm’s required return is 3%, what is the net present value (NPV) of making this change? (Show all the steps and your calculations; see the example 19.4).

A small branch bank has two tellers, one for deposits and one for withdrawals. Customers arrive at each teller’s window with an average rate of 18 customers per hour. (The total customer arrival rate is 36 per hour.) The interarrival times are exponential. The service time of each teller is exponential with a mean of 3 minutes. The bank manager is considering changing the setup to allow each teller to handle both withdrawals and deposits to avoid the situations that arise from time to time when the queue is sizable in front of one teller while the other is idle. However, since the tellers would have to handle both deposits and withdrawals, their efficiency would decrease to a mean service time of 3.2 minutes. Compare the present system with the proposed system with respect to the total average number of customers in the banks and the average time a customer would have to spend in the bank.

A small diner is open for lunch each day. The lunch counter seats a maximum of 12 customers at one time. The average time required for a customer to complete lunch 30 minutes. It takes 4 minutes of a server’s time to take care of a customer. There are two servers assigned to the counter. The cook in the kitchen can prepare an order in 1.5 minutes. Answer the following questions, assuming the diner is relatively full and operating (i.e., you are not at the start-up time).

What is the constraint in the diner? Show your work to support your answer

If the average meal costs $10 and the variable cost is $3 per meal, what is the maximum throughput (production capacity) of the diner per hour?

A new advertising campaign is estimated to increase the number of customers to 36 customers per hour. What are some ways the diner can accommodate this increase.

1. Assume x and y are functions of t. Evaluate dy/dt with 4xy-5x+6y^3=-126, with dx/dt=-18, and x=6,y=-2

2. A retail store estimates that weekly sales and weekly advertising costs x​ are related by s=50,000-30,000e^-0.0004x. The current weekly advertising costs are ​$2,500​, and these costs are increasing at a rate of ​$400 per week. Find the current rate of change of sales per week.

3. Use implicit differentiation to find y’ for the equation below and then evaluate y’ at the indicated point, (-4,4). y^2+5y+9x=0

4. Find the indicated derivative and simplify. Y’ for y=3x-8/x^2+6x

5. Use implicit differentiation to find y’ and evaluate y’ at ​(-2​,-3​). 3xy+y-15=0

6. f(x)=8√ 2x^2+3

7. The demand x is the number of items that can be sold at a price of​ $p. For x=p^4-6p+1000, find the rate of change of p with respect to x by differentiating implicitly. The rate of change of the price p with respect to the demand x is?

8. Suppose that for a company manufacturing​ calculators, the​ cost, revenue, and profit equations are given by C=80,000+30x, R=200x-x^2/20, where the production output in 1 week is x calculators. If production is increasing at a rate of 600 calculators per week when production output is 4,000 calculators. Find the rate of increase in​ cost, revenue, profit.

1a. A small diner serves sandwiches and beverages. Which of the following is a variable cost with respect to the number of customers?

a. Rent

b.Soda

c.New dishwasher

d.All of the above

1b. A firm manufactures luxury automobiles. Which of the following is a product cost?

a.CEO salary

b.Sales commissions

c.Advertising

d.Windshields

1c.Within the relevant range, variable costs can be expected to:

a.increase on a per unit basis as the activity level decreases.

a.remain constant in total as the activity level changes.

c.increase on a per unit basis as the activity level increases.

d.vary in total in direct proportion to changes in the activity level.

1d.Which of the following is true at a firm's break-even point?

a.Profit is zero

b.Total revenue equals total cost

c.Total contribution margin equals total fixed cost

d.All of the above

1e.A corporation has provided the following contribution format income statement

Sales (1,000)                                 $50,000
Variable expense       $32,500
Contribution margin              $17,500
Fixed expenses                             12,250
Net Operating Income            $ 5,250

The break-even point in unit sales is closest to:

a.0 units

b.895 units

c.650 units

d.700 units

1f.A company has the following information:

Income tax rate                        25%
Selling price per unit         $8.00
Variable cost per unit       $5.00
Total fixed costs      $100,000

The contribution margin per unit is:

a.$3.00

b.$2.00

c.$5.00

d.$8.00

The December 31, 2019 statement of financial position of Howson Limited (Howson) showed Trade Accounts Receivable of $450,000 and a credit balance in Allowance for Doubtful Accounts of $45,000. During 2020, the following transactions occurred: Total service revenue of 2,000,000 was recognized of which 75% was billed on account; collections from customers totaled $1,300,000; accounts written off totaled $37,000; and previously written off accounts of $4,000 were collected.

Required

a) Journalize the 2020 transactions. (6 marks)

b) If the company uses the percentage of receivables basis to estimate bad debts expense and determines that uncollectible accounts are expected to be 5% of trade accounts receivable, prepare the adjusting entry at December 31, 2020?
   c) Management of Howson wants to show the highest possible net income for the year ended December 31, 2020. The president states, “one of my competitors told me that using % of credit sales method in determining our bad debt expense would increase the Company’s net income. Our industry average % of 2.4% is very reflective of our bad debt experience.”

    Required:

     The president of Howson has two questions she would like addressed.

1. First, would you recommend Howson adopt this method. (2 marks)

2. Secondly, regardless of your recommendation in (i), what amount would the net book value of the Accounts Receivable show on Howson’s Balance Sheet if the method were adopted?

Mr. and Mts. Patel, local golf stars, opened the Patel Chip‐Shot Driving Range Company on March 1, 2020. They invested $25,000 cash and received common stock in exchange for their investment.

A caddy shack was constructed for cash at a cost of $8,000, and $800 was spent on golf balls and golf clubs. The Patels leased five acres of land at a cost of $1,000 per month and paid the first month's rent. During the first month, advertising costs totaled $750, of which $150 was unpaid at March 31, and $400 was paid to members of the high‐school golf team for retrieving golf balls.

All revenues from customers were deposited in the company's bank account. On March 15, the Patels received a dividend of $1,000. A $100 utility bill was received on March 31 but was not paid. On March 31, the balance in the company's bank account was $18,900. The Patels thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $6,100 to net income of $2,450. Instructions

a. How could the Patels have concluded that the business operated at a loss of $6,100? Was this a valid basis on which to determine net income?

b. How could the Patels have concluded that the business operated at a net income of $2,450? (Hint: Prepare a balance sheet at March 31.) Was this a valid basis on which to determine net income?

c. Determine the actual net income for March.

d. What was the revenue recognized in March?

This question was posted yesterday... the responses (all) provided for requirement 1 was incorrect... I am reposting for assistance....

The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2018, appears below

The following balance sheet information also is available:

In addition, the following transactions took place during the year:

Common stock was issued for $102,000 in cash.

Long-term investments were sold for $51,000 in cash. The original cost of the investments also was $51,000.

$81,000 in cash dividends was paid to shareholders.

The company has no outstanding debt, other than those payables listed above.

Operating expenses include $31,000 in depreciation expense.

Required:
1. Prepare a statement of cash flows for 2018 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities.
2. Prepare the cash flows from operating activities section of Diversified’s 2018 statement of cash flows using the indirect method.