1.) What is the entry to pay for the cost of the merchandise inventory bought for 1,000?

2.) What does this mean? 2/10, net/30

3.) What is the entry to pay for the cost of the merchandise inventory bought for 1,000 if the payment terms are 2/10, net/30 and we pay in 8 days?

4.) What is the entry to record the payment of a customer on account for merchandise inventory?

5.) What is the entry to record the payment of a customer on account for merchandise inventory for 5,000 if the payment terms are 2/10, net/30 and they pay in 8 days?

An asset can be purchased today at an installed cost of $1,000. It is forecast to generate annual operating net cash inflows of $250 for the next five years and to be sold for $100 at the end of four years. (Assume that there is no income tax and that annual net cash flows occur at the end of each year.)

(a)     Draw a time-line showing all the cash flows relating to this asset.                   (1 mark)

(b)     Using a discount rate of 10% per year, what is the present value of the forecast cash inflows? (Give your answer to the nearest cent.)                                                                             

(c)     Using the present value you calculated in part (b), what is the net present value of this project? (Give your answer to the nearest cent.)                                                                       (1 mark)

(d)     If the asset is depreciated at the rate of $200 per year:

          (i)      What will be the accounting profit in years 1 to 4?                                 (1 mark)

          (ii)     What will be the accounting profit in year 5?                                          (1 mark)

          (iii)    What will be the average annual accounting profit?                                (1 mark)

          (iv)    What will be the average investment (based on the asset’s installed cost and salvage value)?   (1 mark)

            (v)        What will be the accounting rate of return? (Give your answer in percentage points to two decimal places.)

What are the challenges of estimating cost of capital for a project taken by a division in a multi-divisional firm, such as Disney, that do not exist when estimating cost of capital of the firm itself (here, Disney)? How would you deal with these challenges (at least discuss two such challenges)

2. Why is it critical to take into account the cost of money in assessing the financial viability of multi-year programs? Explain what is Cumulative Present Value (CPV).

People in the aerospace industry believe the cost of a space project is a function of the mass of the major object being sent into space. Use the following data to develop a regression model to predict the cost of a space project by the mass of the space object. Determine r2 and se.

Weight (tons) Cost ($ millions)

1.897 $ 53.6

3.019 184.4

0.453 6.4

0.978 23.5

1.058 32.6

2.100 110.4

2.404 104.6

*(Do not round the intermediate values. Round your answers to 4 decimal places.) **(Round the intermediate values to 4 decimal places. Round your answer to 3 decimal places.)

ŷ = __________ + __________ * x

r2 =_________________ **

se = ________________**

Production quantity and the total cost of production are given in the form of a table.

1. Determine the total cost production for (i) 2500 tons (ii) 4500 tons
2. If the total production cost is Rs. 50,000, then how many quantities were produced?

Show the impact of the inclusion of external cost on a supply and demand graph.

"Machine A has an immediate cost of $13,000, and it will earn a net income of $6600 per year for a total of 7 years. Machine B has an immediate cost of $24,000, and it will earn a net income of $4600 per year for a total of 28 years. Assume that Machine A can continually be replaced at the end of its useful life with an identical replacement. Neither machine has any salvage value. Enter the annual equivalent worth of the machine that is the best alternative if the interest rate is 14.8%. If neither machine is acceptable, enter 0."

Explain how characteristics of MNCs can affect the cost of capital.

An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation.

1. Compute b₁ and b₀ (to 1 decimal).
   b₁
   b₀
   
   Complete the estimated regression equation (to 1 decimal).
   =  +  x
   
2. What is the variable cost per unit produced (to 1 decimal)?
   $
   
3. Compute the coefficient of determination (to 3 decimals). Note: report r² between 0 and 1.
   r² =
   
   What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)?
   %
   
4. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?
   $