Canyon Buff Corp. has developed a new construction chemical that greatly improves the durability and weatherability of cement-based materials. After spending $500,000 on the research of the potential market for the new chemical, Canyon Buff is considering a project that requires an initial investment of $9,000,000 in manufacturing equipment.

 The equipment must be purchased before the chemical production can begin. For tax purposes, the equipment is subject to a 5-year straight-line depreciation schedule, with a projected zero salvage value. For simplicity, however, we will continue to assume that the asset can actually be used out into the indefinite future (i.e., the actual useful life is effectively infinite).

 Canyon Buff anticipates that the sales will be $30,000,000 in the first year (Year 1). They expect that sales will initially grow at an annual rate of 6% until the end of sixth year. After that, the sales will grow at the estimated 2% annual rate of inflation in perpetuity.

 The cost of goods sold is estimated to be 72% of sales.

 The accounting department also estimates that at introduction in Year 0, the new product's required initial net working capital will be $6,000,000. In future years accounts receivable are expected to be 15% of the next year sales, inventory is expected to be 20% of the next year's cost of goods sold and accounts payable are expected to be 15% of the next year's cost of goods sold.

 The selling, general and administrative expense is estimated to be $6,000,000 per year, but $1 million of this amount is the overhead expense that will be incurred even if the project is not accepted.

 The market research to support the product was completed last month at a cost of $500,000 to be paid by the end of next year.

 The annual interest expense tied to the project is $1,000,000.

 Canyon Buff has a cost of capital of 20% and faces a marginal tax rate of 30% and an average tax rate is 20%.

Determine the NPV of the project.

“Fourth quarter U.S. online sales grew 26.2 percent as compared to the same period in the previous year. Full year results show U.S. online sales year-over-year growth was 32.2%. Overall, full year total company sales, including both online and store sales, increased 9.5% year-over-year.”

Which of the following would NOT explain what this is about?

"Durable press" cotton fabrics are treated to improve their recovery from wrinkles after washing. Unfortunately, the treatment also reduces the strength of the fabric. The breaking strength of untreated fabric is normally distributed with mean 51.8 pounds and standard deviation 2.6 pounds. The same type of fabric after treatment has normally distributed breaking strength with mean 19.1 pounds and standard deviation 2 pounds. A clothing manufacturer tests 3 specimens of each fabric. All 6 strength measurements are independent. (Round your answers to four decimal places.)

"Durable press" cotton fabrics are treated to improve their recovery from wrinkles after washing. Unfortunately, the treatment also reduces the strength of the fabric. The breaking strength of untreated fabric is normally distributed with mean 51.8 pounds and standard deviation 2.6 pounds. The same type of fabric after treatment has normally distributed breaking strength with mean 19.1 pounds and standard deviation 2 pounds. A clothing manufacturer tests 3 specimens of each fabric. All 6 strength measurements are independent. (Round your answers to four decimal places.)

In a Harris poll of 514 human resource professionals, 90% said that the appearance of a job applicant is most important for a good first impression. Construct a 99% confidence interval for the proportion of all human resource professionals believing that the appearance of a job applicant is most important for a good first impression. Also, find the margin of error.

To more efficiently manage its inventory, Treynor Corporation maintains its internal inventory records using first-in, first-out (FIFO) under a perpetual inventory system. The following information relates to its merchandise inventory during the year:

Required:
1. Determine the amount Treynor would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system.
2. Determine the amount Treynor would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. (Assume beginning inventory under LIFO was 20,000 units with a cost of $11.70).
3. Determine the amount Treynor would report for its LIFO reserve at the end of the year.
4. Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $10,000.

Determine the amount Treynor would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. (Round "Cost per Unit" to 2 decimal places.)

Determine the amount Treynor would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. (Assume beginning inventory under LIFO was 20,000 units with a cost of $11.70).

Determine the amount Treynor would report for its LIFO reserve at the end of the year.

Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $10,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record the year-end adjusting entry for the LIFO reserve.

Note: Enter debits before credits.

    Use the following information for this question:

                   June 1                 Inventory 100 @ $1.00

                            6                 Purchased 150 @ $1.10

                          13                 Purchased   50 @ $1.20

                          20                 Purchased 100 @ $1.30

                          25                 Purchased   25 @ $1.40                                                              

                           Total Units Sold in June: 300 units

Using the last-in, first-out (LIFO) method, the COST OF GOODS SOLD is

Using the first-in, first-out (FIFO) method, the cost assigned to the ENDING INVENTORY (not Cost of Goods Sold) would be

Using the average weighted-average cost method and (if necessary) rounding to the nearest dollar, the cost assigned to the ENDING INVENTORY (not Cost of Goods Sold) would be

Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below.

Data for the Maintenance Department follow:

*Budgeted at $24 per machine-hour.

Data for the Forming and Assembly Departments follow:

The level of fixed costs in the Maintenance Department is determined by peak-period requirements.

Required:

1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department?

2. How much, if any, of the actual Maintenance Department costs for the year should be treated as a spending variance and not charged to the Forming and Assembly departments?

How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department?

How much, if any, of the actual Maintenance Department costs for the year should be treated as a spending variance and not charged to the Forming and Assembly departments?