Questions
Aunt Sally’s Sauces Inc., is considering expansion into a new line of all-natural, cholesterol-free, sodium-free, fat-free,...

Aunt Sally’s Sauces Inc., is considering expansion into a new line of all-natural, cholesterol-free, sodium-free, fat-free, low-calorie tomato sauces. Sally has paid $50,000 for a marketing study which indicates that the new product line would have sales of $650,000 per year for the next six years. Manufacturing plant and equipment would cost $500,000, and will be depreciated using the following annual depreciation rates: 0.2, 0.32, 0.1920, 0.1152, 0.1152, 0.0576. The fixed assets will have no market value at the end of six years. Annual fixed costs are projected at $80,000 and variable costs are projected at 60% of sales. Net operating working capital requirements are $75,000 for the six-year life of the project; the outlay for working capital will be recovered at the end of six years. Aunt Sally’s tax rate is 34% and the firm requires a 16% return. a. Compute the annual depreciation and the ending book value of the fixed assets. b. Prepare pro forma income statements for the project for years 1 through 6. c. Compute operating cash flow (NOPAT) for the project for years 1 through 6. d. Compute total projected cash flows for years 0 through 6 for the project. e. Compute the NPV and IRR for the new product line.

In: Finance

Why is it difficult to forecast health care delivery in the United States? Atleast 800 words

Why is it difficult to forecast health care delivery in the United States?

Atleast 800 words

In: Nursing

How is the demand and supply in Morocco? how is the market regulated in Morocco? Impact...

How is the demand and supply in Morocco?
how is the market regulated in Morocco?
Impact of COVID on demand, sypply, price in Morocco?

In: Economics

The following information applies to the questions displayed below.] On January 1, 2021, the general ledger...

The following information applies to the questions displayed below.]

On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:

Accounts Debit Credit
Cash $ 26,400
Accounts Receivable 48,800
Allowance for Uncollectible Accounts $ 5,500
Inventory 21,300
Land 59,000
Equipment 21,500
Accumulated Depreciation 2,800
Accounts Payable 29,800
Notes Payable (6%, due April 1, 2022) 63,000
Common Stock 48,000
Retained Earnings 27,900
Totals $ 177,000 $ 177,000

During January 2021, the following transactions occur:

January 2 Sold gift cards totaling $10,600. The cards are redeemable for merchandise within one year of the purchase date.
January 6 Purchase additional inventory on account, $160,000.
January 15 Firework sales for the first half of the month total $148,000. All of these sales are on account. The cost of the units sold is $80,300.
January 23 Receive $126,700 from customers on accounts receivable.
January 25 Pay $103,000 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $6,100.
January 30 Firework sales for the second half of the month total of $156,000. Sales include $15,000 for cash and $141,000 on account. The cost of the units sold is $86,000.
January 31 Pay cash for monthly salaries, $53,300.

5. Prepare a classified balance sheet as of January 31, 2021.

In: Accounting

As the cost accounting manager at Cambria Chemicals (CC), you are responsible for compiling and reporting...

As the cost accounting manager at Cambria Chemicals (CC), you are responsible for compiling and reporting various performance measures to the senior managers. The company instituted many efficiency improvement programs recently, and the CFO has asked you to measure and report partial productivity for both labor and materials. Data for the last two years follow.

Year 2 Year 1
Gallons input(Thousands) 9,000 8,000
Labor-hours (thousands) 10,000 7,600
Gallons of output (thousands) 10,800 8,800

From the accounting records, you also gather the information for the two years.

Year 2 Year 1
Cost of inputs(per gallon) $85 $90
Wage rate (per hour) $22 $19
Total Manufacturing overhead $1,280,000 $1,160,000
Selling price of output (per gallon) $360 $370

Required:

a. Compute the total factor productivity measures for year 1 and year 2 based on the three inputs (material, labor, and overhead). (round your answers to 3 decimal places)

In: Accounting

"Tale of Genji" is often considered the first novel in history. Give three traits that make...

"Tale of Genji" is often considered the first novel in history. Give three traits that make this story "novel-like" and describe how similar or different these traits are to modern novels. You may want to look up the definition of a novel, or compare it to other modern books like it.

In: Nursing

The management of Kiboko Ltd. want to establish the amount of financial needs for the next...

The management of Kiboko Ltd. want to establish the amount of financial needs for the next two years. The balance sheet of the firm as at 31 December 2001 is as follows:

Sh.’000’

Net fixed assets

Stock

Debtors

Cash

Total assets

124,800

38,400

28,800

    7,200

199,200

Financed by:

Ordinary share capital

Retained earnings

12% long-term debt

Trade creditors

Accrued expenses

84,000

35,200

20,000

36,000

24,000

199,200

For the year ended 31 December 2001, sales amounted to Sh.240, 000,000. The firm projects that the sales will increase by 15% in year 2002 and 20% in year 2003.

The after tax profit on sales has been 11% but the management is pessimistic about future operating costs and intends to use an after-tax profit on sales rate of 8% per annum.

The firm intends to maintain its dividend payout ratio of 80%. Assets are expected to vary directly with sales while trade creditors and accrued expenses form the spontaneous sources of financing. Any external financing will be affected through the use of commercial paper.

(a)        Determine the amount of external financial requirements for the next two years.   

(b)        (i)         A proforma balance sheet as at 31 December 2003.

(ii)        State the fundamental assumption made in your computations in (a) and b(i) above.

In: Finance

TufStuff, Inc., sells a wide range of drums, bins, boxes, and other containers that are used...

TufStuff, Inc., sells a wide range of drums, bins, boxes, and other containers that are used in the chemical industry. One of the company’s products is a heavy-duty corrosion-resistant metal drum, called the WVD drum, used to store toxic wastes. Production is constrained by the capacity of an automated welding machine that is used to make precision welds. A total of 2,140 hours of welding time is available annually on the machine. Because each drum requires 0.4 hours of welding machine time, annual production is limited to 5,175 drums. At present, the welding machine is used exclusively to make the WVD drums. The accounting department has provided the following financial data concerning the WVD drums: WVD Drums Selling price per drum $ 177.00 Cost per drum: Direct materials $52.10 Direct labor ($25 per hour) 5.00 Manufacturing overhead 8.70 Selling and administrative expense 31.20 97.00 Margin per drum $ 80.00 Management believes 6,275 WVD drums could be sold each year if the company had sufficient manufacturing capacity. As an alternative to adding another welding machine, management has considered buying additional drums from an outside supplier. Harcor Industries, Inc., a supplier of quality products, would be able to provide up to 4,175 WVD-type drums per year at a price of $159 per drum, which TufStuff would resell to its customers at its normal selling price after appropriate relabeling. Megan Flores, TufStuff’s production manager, has suggested that the company could make better use of the welding machine by manufacturing bike frames, which would require only 0.5 hours of welding machine time per frame and yet sell for far more than the drums. Megan believes that TufStuff could sell up to 1,740 bike frames per year to bike manufacturers at a price of $274 each. The accounting department has provided the following data concerning the proposed new product: Bike Frames Selling price per frame $ 274.00 Cost per frame: Direct materials $103.60 Direct labor ($18 per hour) 40.00 Manufacturing overhead 43.00 Selling and administrative expense 53.40 240.00 Margin per frame $ 34.00 The bike frames could be produced with existing equipment and personnel. Manufacturing overhead is allocated to products on the basis of direct labor-hours. Most of the manufacturing overhead consists of fixed common costs such as rent on the factory building, but some of it is variable. The variable manufacturing overhead has been estimated at $1.35 per WVD drum and $1.90 per bike frame. The variable manufacturing overhead cost would not be incurred on drums acquired from the outside supplier. Selling and administrative expenses are allocated to products on the basis of revenues. Almost all of the selling and administrative expenses are fixed common costs, but it has been estimated that variable selling and administrative expenses amount to $.75 per WVD drum whether made or purchased and would be $2.00 per bike frame. All of the company’s employees—direct and indirect—are paid for full 40.00-hour work weeks and the company has a policy of laying off workers only in major recessions. As soon as your analysis was shown to the top management team at TufStuff, several managers got into an argument concerning how direct labor costs should be treated when making this decision. One manager argued that direct labor is always treated as a variable cost in textbooks and in practice and has always been considered a variable cost at TufStuff. After all, “direct” means you can directly trace the cost to products. “If direct labor is not a variable cost, what is?” Another manager argued just as strenuously that direct labor should be considered a fixed cost at TufStuff. No one had been laid off in over a decade, and for all practical purposes, everyone at the plant is on a monthly salary. Everyone classified as direct labor works a regular 40.00-hour workweek and overtime has not been necessary since the company adopted Lean Production techniques. Whether the welding machine is used to make drums or frames, the total payroll would be exactly the same. There is enough slack, in the form of idle time, to accommodate any increase in total direct labor time that the bike frames would require. Required:

1. Compute the contribution margin per unit. [assume direct labor is a variable cost]

2. Compute the contribution margin per welding hour. [assume direct labor is a variable cost]

3. Assuming direct labor is a variable cost:

a. Determine the number of WVD drums (if any) that should be purchased and the number of WVD drums and/or bike frames (if any) that should be manufactured. [Assume direct labor is a variable cost]

b. What is the increase (decrease) in net operating income that would result from this plan over current

In: Accounting

Classify Manufacturing Costs (9 marks) A Car Company had the following costs during January 2020 a)...

Classify Manufacturing Costs
A Car Company had the following costs during January 2020
a) Classify each cost as either Direct Material (DM), Direct Labour (DL), Indirect Materials (IM), Indirect (Labour), Manufacturing Overhead (MOH) or period cost. Calculate the total for each type of cost.
• Manufacturing Workers Wages​​​​$125,000 = DL
• Plant utilities​​​​​​$7,000 = MOH
• Office utilities​​​​​​$550 = PC
• Plant/Manufacturing equipment depreciation​​$15,000 = MOH
• Depreciation of Office Equipment​​​$1,800 = PC
• Manufacturing Supplies​​​​​$3,500 = DM
• Engine parts​​​​​​$180,000 = DM
• Factory Janitor Wages​​​​​$18,000 = MOH
• Property taxes on Manufacturing facility​​​$4,500 = MOH
• Property taxes on Office building​​​$500 = PC
• Office Workers Salaries​​​​​$45,000 = PC
b) Calculate total Manufacturing overhead costs
= 7000+15000+4500= 26500
c) Calculate total Inventoriable costs
d) Calculate total prime costs
e) Calculate total conversion costs (1 mark)
f) Calculate total period costs

In: Accounting

Define what is meant by rationing of health care. In what age-based population is health care...

Define what is meant by rationing of health care. In what age-based population is health care rationing most likely to occur? How might this be done? (Give two examples, and provide references as appropriate.) (200 words only)

In: Nursing

The primary goal of most businesses is profit maximization. Discuss the concept of profit maximization. How...

The primary goal of most businesses is profit maximization. Discuss the concept of profit maximization. How can it be reconciled with corporate social responsibility? Can profit maximization promote social welfare?

In: Finance

sketch a graph about the relation between Number of states N(E) and Energy E . and...

sketch a graph about the relation between Number of states N(E) and Energy E .

and explain the different between the empty states and the full states

In: Physics

Suppose, for a random sample selected from a normally distributed population, X^- =51.70 and s= 8.8...

Suppose, for a random sample selected from a normally distributed population, X^- =51.70 and s= 8.8

Round your answers to 2 decimal places.

a. Construct a 95% confidence interval for μ assuming n = 16.

.... to ....

b. Construct a 90% confidence interval for μ assuming n = 16.

.... to ....

Is the width of the 90% confidence interval smaller than the width of the 95% confidence interval calculated in part a?

Yes or No?

c. Find a 95% confidence interval for μ assuming n = 25.

to Is the width of the 95% confidence interval for μ with n = 25 smaller than the width of the 95% confidence interval for μ with n = 16 calculated in part a?

Yes or No?

In: Statistics and Probability

Crane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively....

Crane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product. Its average cost per unit for each product at this level of activity are given below:
Direct materials 30, 18
Direct labor 23,16
Variable manufacturing overhead 10, 8
Traceable fixed manufacturing overhead 19, 21
Variable selling expenses 15, 11
Common fixed expenses 18, 13
Total cost per unit 115, 87
The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.
1. Assume that Cane normally produces and sells 43,000 Betas this year. What is the financial advantage or disadvantage of discontinuing the Beta product line?
2. Assume that Cane normally produces and sells 63,000 Betas and 83,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 18,000 units. What is the financial advantage or disadvantage the Beta product line?
3. Assume that Cane expects to produce and sell 83,000 Alphas during the current year. A supplier has offered to manufacture and deliver 83,000 Alphas to Cane for a price of $92 per unit. What is the financial advantage or disadvantage of buying 83,000 units from the supplier instead of making those units?
4. Assume that Cane expects to produce and sell 53,000 Alphas during the current year. A supplier has offered to manufacture and deliver 53,000 Alphas to Cane for a price of $92 per unit. What is the financial advantage or disadvantage of buying 53,000 units from the supplier instead of making those units?

In: Accounting

There are a number of statistics computed to measure the price level, such as the GDP...

There are a number of statistics computed to measure the price level, such as the GDP deflator and the CPI. The choice of which of these measures to use depends in many cases on the specific question in which you are interested. For each of the following situations, state whether the CPI or GDP deflator is a more appropriate measure to use and explain why. 1. (5 pts) The government is interested in whether increases in defense spending are affecting the price level. 2. (5 pts)An economic consulting firm is investigating the impact on the aggregate price level of more computers and electronic technology used in production.

In: Economics