In: Civil Engineering
In: Civil Engineering
The Following information relates to contract #102,which was undertaken for the construction of a railway bridge for the Kampton Council.The Value of the contract is $250000 and it is at a stage where profits can be attributed to it.Details of the contract are shown in the books:
$
Materials sent to site 85349
Labour engaged on site 74375
Plant installed at cost 15000
Direct expenditure 4136
General Overhead Charges 3167
Materials returned to store 549
Work certified 195000
Cost of Work not certified 4500
Materials on hand,December 31 1883
Wages accrued on December 31 2400
Direct Expenditure 240
Value of Plant December 31 11000
Cash has been received from the contractee,amounting to $180000
Required: (i)contract Account
(ii) profit and loss account
(iii)contractee accounts
In: Accounting
F2 Industries is considering the replacement of its old, fully depreciated dozer. Two upgraded used models under consideration. The Komatsu D39-22 with a cost of $190,000 with and an expected remaining life of 6 years. The D39-22 will provide after tax cash flows (labor savings and depreciation) of $52,000 per year. The second dozer is a Case D-9 which costs $360,000 has a remaining life of 6 years and will produce after tax cash flows of $98,300 per year. Because of the current economic conditions surrounding construction dozers are not expected to rise over the life of the project. Assume F2 Industries cost of capital is 14%. What is the Net Present Value Case D-9 dozer?
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$98,300 |
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$360,000 |
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$22,256 |
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$17.450 |
In: Finance
You have been asked by the president of the Farr Construction Company to evaluate the proposed acquisition of a new earth mover. The mover’s basic price is $200,000, and it would cost another $30,000 to modify it for special use. Assume that the mover falls into the MACRS 5-year class, it would be sold after 4 years for $60,000, and it would require an increase in net operating working capital (spare parts inventory) of $10,000. The earth mover would have no effect on revenues, but it is expected to save the firm $50,000 per year in before-tax operating costs, mainly labor. The firm’s marginal federal-plus-state tax rate is 40 percent and the project’s cost of capital is 10 percent. Evaluate the project using the NPV rule and the IRR rule.
In: Finance
Isabella Construction and Interior Design is an all-equity
company in Central Michigan. The CFO John Thornton Jr. is
considering moving to a capital structure with 25% debt and 75%
equity and using the all the newly raised capital to
repurchaseshares of the common stock. The firm’s tax rate is 22%,
its current beta is 1.40, and it has 25,000 shares of common stock
with a market price of $312 per share. Assume MM propositions
hold.
a. How many shares of common stock will remain after the
repurchase?
b. If the risk-free rate is 3.5% and the market risk premium is
8.0%, by how much would the cost of equity for the levered firm
increase, compared to the cost of equity of the unlevered
firm?
c. What will be the change in the WACC, if the company can borrow
at 7.25 percent?
In: Finance
In: Accounting
With the aid of annotated digram, critically explain the
application of various
construction materials for Civil & Infrastructural projects as
well as comparing the
physical characteristics of construction materials
1. Low rise building
2. High rise building
3. Pavement project
- Should be .DOC
- The length of essay should be between 1500 - 2000 words.
- The report shall be typeset
- Formal report format is required
- Photos are appreciated in the report
- Reference should be provided
In: Civil Engineering
Horizontal Analysis of the Income Statement
Income statement data for Winthrop Company for two recent years ended December 31, are as follows:
| Current Year | Previous Year | ||||
| Sales | $925,000 | $740,000 | |||
| Cost of goods sold | 780,800 | 640,000 | |||
| Gross profit | $144,200 | $100,000 | |||
| Selling expenses | $41,400 | $36,000 | |||
| Administrative expenses | 36,900 | 30,000 | |||
| Total operating expenses | $78,300 | $66,000 | |||
| Income before income tax | $65,900 | $34,000 | |||
| Income tax expenses | 26,400 | 13,600 | |||
| Net income | $39,500 | $20,400 | |||
a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.
| Winthrop Company | ||||
| Comparative Income Statement | ||||
| For the Years Ended December 31 | ||||
| Current year Amount |
Previous year Amount |
Increase (Decrease) Amount |
Increase (Decrease) Percent |
|
| Sales | $925,000 | $740,000 | $ | % |
| Cost of goods sold | 780,800 | 640,000 | % | |
| Gross profit | $144,200 | $100,000 | $ | % |
| Selling expenses | $41,400 | $36,000 | $ | % |
| Administrative expenses | 36,900 | 30,000 | % | |
| Total operating expenses | $78,300 | $66,000 | $ | % |
| Income before income tax | $65,900 | $34,000 | $ | % |
| Income tax expense | 26,400 | 13,600 | % | |
| Net income | $39,500 | $20,400 | $ | % |
b. The net income for Winthrop Company increased between years. This increase was the combined result of an in sales and percentage in cost of goods sold. The cost of goods sold increased at a rate than the increase in sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales.
Check My Work2 more Check My Work uses remaining.
In: Accounting
Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and are interested in estimating costs in potential new locations. They believe that costs are driven in large part by store volume measured by revenue. The following data were collected from last year’s operations (revenues and costs in thousands of dollars):
| Store | Revenues | Costs |
| 101 | $4,250 | $4,439 |
| 102 | 2,377 | 3,194 |
| 103 | 5,963 | 5,406 |
| 104 | 4,282 | 4,373 |
| 105 | 3,139 | 4,126 |
| 106 | 4,323 | 3,844 |
| 107 | 7,044 | 5,254 |
| 108 | 2,004 | 3,124 |
| 109 | 6,166 | 5,288 |
| 110 | 3,678 | 3,409 |
| 111 | 4,186 | 4,554 |
| 112 | 5,065 | 3,500 |
| 113 | 3,702 | 3,006 |
| 114 | 5,417 | 4,955 |
| 115 | 2,874 | 3,211 |
|
a. Use the high-low method to estimate the fixed and variable portions of store costs based on revenues. (Round variable cost percentage answer to 1 decimal place. Enter fixed cost answer in thousands of dollars.)
c. Managers are also considering a “mega-store” with revenues of $25 million. What are the estimated monthly overhead costs, assuming no inflation? (Do not round variable cost percentage for your calculations. Round your intermediate calculations to the nearest whole dollar. Enter your answer in thousands of dollars.) |
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In: Accounting