Periodic Inventory System and Inventory Costing Methods During its first year of operation, Lux Company purchased 5,600 units of a product at $42 per unit. During the second year, it purchased 6,000 units of the same product at $48 per unit. During the third year, it purchased 5,000 units at $60 per unit. Lux managed to have an ending inventory each year of 1,000 units. The company uses the periodic inventory system. Prepare cost of goods sold statements that compare the value of ending inventory and the cost of goods sold for each of the three years using the FIFO inventory costing method. If an amount is zero, enter "0". Year 1 Year 2 Year 3 Beginning inventory: $ $ $ Purchases: $ $ $ Cost of goods available for sale: $ $ $ Ending inventory: $ $ $ Cost of goods sold: $ $ $ Prepare cost of goods sold statements that compare the value of ending inventory and the cost of goods sold for each of the three years using the LIFO method. If an amount is zero, enter "0". Year 1 Year 2 Year 3 Beginning inventory: $ $ $ Purchases: $ $ $ Cost of goods available for sale: $ $ $ Ending inventory: $ $ $ Cost of goods sold: $ $ $
In: Accounting
|
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.97 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,170,000 in annual sales, with costs of $847,000. The project requires an initial investment in net working capital of $390,000, and the fixed asset will have a market value of $255,000 at the end of the project. |
| If the tax rate is 35 percent, what is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (MACRS schedule) (Enter your answers in dollars, not millions of dollars, e.g. 1,234,567. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places, e.g., 32.16.) |
| Years | Cash Flow |
| Year 0 | $ |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
|
If the required return is 9 percent, what is the project's NPV? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
PLEASE SHOW WORK, NO EXCEL PLEASE
In: Finance
Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
| Current Year | Previous Year | |||
| Accounts payable | $982,000 | $229,000 | ||
| Current maturities of serial bonds payable | 580,000 | 580,000 | ||
| Serial bonds payable, 10% | 2,310,000 | 2,890,000 | ||
| Common stock, $1 par value | 100,000 | 120,000 | ||
| Paid-in capital in excess of par | 1,060,000 | 1,070,000 | ||
| Retained earnings | 3,680,000 | 2,920,000 | ||
The income before income tax was $809,200 and $708,100 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
| Current year | |
| Previous year |
b. Determine the times interest earned ratio for both years. Round to one decimal place.
| Current year | |
| Previous year |
c. The ratio of liabilities to stockholders' equity has improved and the number of times bond interest charges were earned has improved from the previous year. These results are the combined result of a larger income before income taxes and lower interest expense in the current year compared to the previous year.
In: Accounting
Phillip and Case are in the process of forming a partnership to import Belgian chocolates, to which Phillip will contribute one-third time and Case full time. They have discussed the following alternative plans for sharing profit and losses. a. In the ratio of their initial investments, which they have agreed will be $164,000 for Phillip and $246,000 for Case. b. In proportion to the time devoted to the business. c. A salary allowance of $4,000 per month to Case and the balance in accordance with their initial investment ratio. d. A $4,000 per month salary allowance to Case, 10% interest on their initial investments, and the balance equally. The partners expect the business to generate profit as follows: Year 1, $101,000 loss; Year 2, $151,000 profit; and Year 3, $251,000 profit. Required: Complete a schedule for each of the four plans being considered by showing how the partnership profit or loss for each year would be allocated to the partners. (Enter all amounts as positive value. Round the final answer to the nearest whole dollar.)
Plan a
:year 1 calculations share to philp share to case total plan
year 2
year 3
plan B
year 1 calculations share to philp share to case total plan
year 2
year 3
In: Accounting
| Question 1 |
What is the accumulated sum of the following stream of
payments?
$924 every year at the end of the year for 11 years at 5.88
percent, compounded annually.
Round the answer to two decimal places and show work
| Question 2 |
For the next 15 years, you decide to place $4,171 in equal year-end deposits into a savings account earning 14.91 percent per year. How much money will be in the account at the end of that time period?
Round the answer to two decimal places and show work
| Question 3 |
What is the present value of the following annuity?
$994 every year at the end of the year for the next 13 years,
discounted back to the present at 14.31 percent per year,
compounded annually?
Round the answer to two decimal places and show work
| Question 4 |
You have accumulated some money for your retirement. You are going to withdraw $98,014 every year at the end of the year for the next 21 years. How much money have you accumulated for your retirement? Your account pays you 3.86 percent per year, compounded annually. To answer this question, you have to find the present value of these cash flows.
Round the answer to two decimal places.
In: Finance
Required information [The following information applies to the questions displayed below.] O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 29 Direct labor $ 18 Variable manufacturing overhead $ 4 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 560,000 Fixed selling and administrative expenses $ 180,000 During its first year of operations, O’Brien produced 96,000 units and sold 77,000 units. During its second year of operations, it produced 82,000 units and sold 96,000 units. In its third year, O’Brien produced 87,000 units and sold 82,000 units. The selling price of the company’s product is $74 per unit. 2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first): a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3.
In: Accounting
discount rate is 10%
1.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=3 and you will receive additional $1000 at the end of the 12 years.,What is the PV at time zero? what is the FV at time 12?
2.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=3.What is the PV at time zero? what is the FV at time 12?
3.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=1 and you will receive additional $1000 at t=5.What is the PV at time zero? what is the FV at time 10
4.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=1 .What is the PV at time zero? What is the FV at time 10?
5.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=1 and you will receive additional $1000 at the end of the 10 years.,What is the PV at time zero? what is the FV at time 12?
In: Finance
Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
| Current Year | Previous Year | |||
| Accounts payable | $464,000 | $286,000 | ||
| Current maturities of serial bonds payable | 470,000 | 470,000 | ||
| Serial bonds payable, 10% | 2,230,000 | 2,700,000 | ||
| Common stock, $1 par value | 90,000 | 110,000 | ||
| Paid-in capital in excess of par | 990,000 | 1,000,000 | ||
| Retained earnings | 3,440,000 | 2,730,000 | ||
The income before income tax was $756,000 and $661,500 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
| Current year | |
| Previous year |
b. Determine the times interest earned ratio for both years. Round to one decimal place.
| Current year | |
| Previous year |
c. The ratio of liabilities to stockholders' equity has improved and the number of times bond interest charges were earned has improved from the previous year. These results are the combined result of a larger income before income taxes and lower
Correct
interest expense in the current year compared to the previous year.
In: Accounting
our company is considering a machine that will cost $ 6,582 at Time 0 and which can be sold after 3 years for $ 231 . To operate the machine, $ 418 must be invested at Time 0 in inventories; these funds will be recovered when the machine is retired at the end of Year 3. The machine will produce sales revenues of $ 981 /year for 3 years; variable operating costs (excluding depreciation) will be 56 percent of sales. Operating cash inflows will begin 1 year from today (at Time 1). The machine is in the 3-year MACRS class. The MACRS class has depreciation of 33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4. The company has a 30 percent tax rate, enough taxable income from other assets to enable it to get a tax refund from this project if the project's income is negative, and a 10 percent cost of capital. Inflation is zero. What are the terminal cash flows associated with ending this project?
Note, I want only the Year 3 terminal cash flows, not the year 3 operating cash flows. Show your answer to the nearest $.01 Do not use the $ symbol in your answer.
In: Finance
[The following information applies to the questions displayed below.]
O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:
| Variable costs per unit: | ||
| Manufacturing: | ||
| Direct materials | $28 | |
| Direct labor | $15 | |
| Variable manufacturing overhead | $4 | |
| Variable selling and administrative | $3 | |
| Fixed costs per year: | ||
| Fixed manufacturing overhead | $580,000 | |
| Fixed selling and administrative expenses | $180,000 | |
During its first year of operations, O’Brien produced 93,000 units and sold 76,000 units. During its second year of operations, it produced 77,000 units and sold 89,000 units. In its third year, O’Brien produced 81,000 units and sold 76,000 units. The selling price of the company’s product is $80 per unit.
1.
value:
1.00 points
Required information
Required:
1. Assume the company uses variable costing and a FIFO inventory
flow assumption (FIFO means first-in first-out. In other words, it
assumes that the oldest units in inventory are sold
first):
a. Compute the unit product cost for Year 1, Year 2, and Year 3.
b. Prepare an income statement for Year 1, Year 2, and Year 3.
References
eBook & Resources
Financial StatementsLearning Objective: 05-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method.
Difficulty: 3 HardLearning Objective: 05-02 Prepare income statements using both variable and absorption costing.
Ask your instructor a questionCheck my work
2.
value:
1.00 points
Required information
2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first):
a. Compute the unit product cost for Year 1, Year 2, and Year 3.
b. Prepare an income statement for Year 1, Year 2, and Year 3.
References
eBook & Resources
Financial StatementsLearning Objective: 05-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method.
Difficulty: 3 HardLearning Objective: 05-02 Prepare income statements using both variable and absorption costing.
Ask your instructor a questionCheck my work
3.
value:
1.00 points
Required information
3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):
a. Compute the unit product cost for Year 1, Year 2, and Year 3. (Round your intermediate calculations and final answers to 2 decimal places.)
b. Prepare an income statement for Year 1, Year 2, and Year 3. (Round your intermediate calculations to 2 decimal places.)
References
eBook & Resources
Financial StatementsLearning Objective: 05-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method.
Difficulty: 3 HardLearning Objective: 05-02 Prepare income statements using both variable and absorption costing.
Ask your instructor a questionCheck my work
4.
value:
1.00 points
Required information
4. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first):
a. Compute the unit product cost for Year 1, Year 2, and Year 3. (Round your intermediate calculations and final answers to 2 decimal places.)
b. Prepare an income statement for Year 1, Year 2, and Year 3. (Round your intermediate calculations to 2 decimal places.)
In: Accounting