A Company is considering investing in a new dock that will cost $350,000. The company expects to use the dock for 5 years, after which it will be sold for $90,000. LakeFront anticipates annual net cash inflows of $85,000 resulting from the new dock. Instructions
Calculate the net present value of the dock assuming the company's cost of capital is 10%.
Calculate the net present value of the dock assuming the company's cost of capital is 15%.
In: Accounting
A student planning a career in management wondered why it was important to learn cost and management accounting. How would you respond? Give some examples to support your point of view.
In: Accounting
Answer as many as you can please
In: Accounting
The managers of Luckyprod Manufacturing are discussing ways to allocate the cost of service departments, such as Quality Control and Maintenance, to the production departments. To aid them in this discussion, the controller has provided the following information:
| Quality control | Maintenance | Machining | Assembly | Total | |
| Budgeted overhead costs before allocation | $350,000 | $200,000 | $400,000 | $300,000 | $1,250,000 |
| Budgeted machine hours | -- | -- | 50,000 | -- | 50,000 |
| Budgeted direct labor hours | -- | -- | -- | 25,000 | 25,000 |
| Budgeted hours of service | |||||
| Quality control | -- | 7,000 | 21,000 | 7,000 | 35,000 |
| Maintenance | 10,000 | -- | 18,000 | 12,000 | 40,000 |
Requirements:
(28-1) If Luckyprod uses the direct method of allocating service department costs, calculate the total amount of overhead costs (including its own overhead costs) allocated to the assembly department. (3 points).
(28-2) If Luckyprod uses the step-down method of allocating service costs beginning with the support department with the highest amount of interdepartmental support service, calculate the total amount of overhead costs (including its own overhead costs) allocated to the assembly department. (5 points)
(28-3) If Luckyprod uses the reciprocal method of allocating service costs, calculate the total amount of overhead costs (including its own overhead costs) allocated to the assembly department. (7 points)
(28-4) Comment on your results in (28-1), (28-2), and (28-3). Discuss the differences, advantages, and disadvantages of the three methods. (6 points)
In: Accounting
Cheyenne Co. is building a new hockey arena at a cost of $2,560,000. It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,110,000 to complete the project. It therefore decides to issue $2,110,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 11%.
Prepare the journal entry to record the issuance of the bonds on January 1, 2016. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.)
Assume that on July 1, 2019, Cheyenne Co. redeems half of the bonds at a cost of $1,110,800 plus accrued interest. Prepare the journal entry to record this redemption. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
In: Accounting
In a random sample of
50
refrigerators, the mean repair cost was
$132.00
and the population standard deviation is
$15.10
A
95%
confidence interval for the population mean repair cost is
(127.81,136.19).
Change the sample size to
n=100
Construct a
95
confidence interval for the population mean repair cost. Which confidence interval is wider? Explain.
In: Statistics and Probability
The Collins Corporation purchased office equipment at the
beginning of 2019 and capitalized a cost of $2,200,000. This cost
included the following expenditures:
| Purchase price | $ | 1,960,000 | |
| Freight charges | 42,000 | ||
| Installation charges | 32,000 | ||
| Annual maintenance charge | 166,000 | ||
| Total | $ | 2,200,000 | |
The company estimated an eight-year useful life for the equipment.
No residual value is anticipated. The double-declining-balance
method was used to determine depreciation expense for 2019 and
2020.
In 2021, after the 2020 financial statements were issued, the
company decided to switch to the straight-line depreciation method
for this equipment. At that time, the company’s controller
discovered that the original cost of the equipment incorrectly
included one year of annual maintenance charges for the
equipment.
Required:
1 & 2. Ignoring income taxes, prepare the
appropriate correcting entry for the equipment capitalization error
discovered in 2021 and any 2021 journal entries related to the
change in depreciation methods. (If no entry is required
for a transaction/event, select "No journal entry required" in the
first account field. Round your final answers to the nearest whole
dollar.)
In: Accounting
Please, use this forum to provide a cost benefit analysis of taking this class in an accelerated online format.
What are some of the
benefits of taking this course online? What are some benefits of
taking this course in an accelerated format? (half of a semester
time).
What were the costs?
This is for my online (macro) econ class discussion. please help! this is a make or break. thanks!
In: Economics
Conduct a financial statement analysis of Verizon Communication Inc Cost structure.
In: Accounting
A company tends to sell the rice for £1 a kilogram. The variable cost of production per kilogram is 60 pence and the fixed costs associated with this product are estimated to be £50000 a year. The company’s maximum output of rice will be 250,000 kg per year. Present graphically by drawing break-even charts for the company. Also illustrate numerically.
In: Accounting