Susmel Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flows -$500 $150 $200 $300 2.03 years 2.25 years 2.50 years 2.75 years 3.03 years

Answers

Answer 1
Answer:

Answer:

Payback period = 2.5 years

Explanation:

given data

Year    0            1           2           3

cash    -$500  $150   $200   $300

to find out

What is the project's payback

solution

Year        Cash flows   Cumulative Cash flows

0                 500             500

1                  150              350

2                 200             150

3                 300              150

so

Payback period = Last period with a negative cumulative cash flow +(Absolute value of cumulative cash flows at that period ÷ Cash flow after that period)      .........................1

put here value we get

so

Payback period = 2+ (150)/(300)    

Payback period = 2.5 years

Answer 2
Answer:

Final answer:

The payback period for the project is approximately 2.75 years.

Explanation:

The payback period is a financial metric used to assess the time it takes for an investment or project to generate enough cash flows to recover the initial investment cost. It's a simple tool for evaluating the risk and return of an investment, with shorter payback periods generally indicating lower risk. The payback period is the amount of time it takes to recover the initial investment in a project.

To calculate the payback period, we sum the cash flows until we reach or surpass the initial investment.

In this case, the initial investment is $500, and the cash flows are: $150, $200, and $300 in years 1, 2, and 3 respectively.

By adding the cash flows together, we find that the project's payback is 2 years and 25% of year 3, which is approximately 2.75 years.

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Assume an investor purchases the net assets of an investee for the cash purchase price is $50,400. The investor is willing to purchase the investee's business for this amount because the fair value of PPE is $47,040 and the fair value of a (previously unrecognized) customer list is $10,080 (the fair values of all other assets and liabilities are equal to their book values). The investee company reports the following balance sheet on the acquisition date:Cash $1,680 Accounts payable 3,360 Accounts receivable $3,360 Accrued liabilities 5,040 Inventories 6,720 Current assets 11,760 Current liabilities 8,400 Long-tem liabilities 6,720PPE, net 16,800 Stockholders' equity 13,440 Total liabilities & equity $28,560 Total assets $28,560Parts A and B are independent of each other. A. Provide the journal entry if the investor pays cash and purchases the assets and assumes the liabilities of the investee company. B. Provide the journal entry if the investor pays cash and purchases all of the stock of the investee's shareholders.

Nuzum Corporation has two divisions: Division M and Division N. Data from the most recent month appear below: Total Company Division M Division N Sales $557,000 $254,000 $303,000 Variable expenses 144,910 81,280 63,630 Contribution margin 412,090 172,720 239,370 Traceable fixed expenses 273,000 128,000 145,000 Segment margin 139,090 44,720 94,370 Common fixed expenses 94,690 43,180 51,510 Net operating income $ 44,400 $ 1,540 $ 42,860 Management has allocated common fixed expenses to the Divisions based on their sales. The break-even in sales dollars for Division N is closest to:

Answers

Answer:

$ 183,544.30 = $ 183,544

Explanation:

Nuzum Corporation

                                       Total             Division M         Division N          

Sales                              $557,000          $254,000      $303,000

Variable expenses          144,910             81,280             63,630

Contribution margin        412,090            172,720          239,370

Traceable fixed expenses 273,000        128,000          145,000

Segment margin                139,090          44,720            94,370

Common fixed expenses 94,690           43,180               51,510

Net operating income    $ 44,400          $ 1,540           $ 42,860

First we find the Segment CM ratio by the following formula:

Segment Contribution Margin Ratio= Segment Sales- Segment Variable Expenses/ Sales

Segment Contribution Margin Ratio= 303,000 -63630/303000

Segment Contribution Margin Ratio= 239370/303000=0.79

Then we find the break even sales in dollars.

Break Even Sales in Dollars= Traceable Fixed Expense/ Segment Contribution Margin Ratio

Break Even Sales in Dollars =145,000/0.79=  $ 183,544.303

At DEC computers, according to the master schedule, the product mix for three different computers will be as follows: 50% product A, 30% product B, and 20% product C. For the coming year aggregate production quantity according to the aggregate plan is 10,400 units. The production will take place evenly throughout the year. Assuming 52 weeks per year, what is the weekly planned production for product Aa. 400
b. 200
c. 50
d. 100
e. 1000

Answers

Answer: 100

Explanation: Its 100

Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.Estimated manufacturing overhead $ 351,960
Estimated machine-hours 8,400
Actual manufacturing overhead $ 352,960
Actual machine-hours 8,460
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
The applied manufacturing overhead for the year is closest to:_________.
A. $357,012
B. $354,474
C. $355,489
D. $352,951

Answers

Answer:

B. $354,474

Explanation:

The Overheads that are initially included in Work In Process before determination of Actual Overheads are called Applied Overheads.

Applied Overheads = Predetermined overhead rate × Actual level of Activity.

Thus said we need to first determine the Predetermined overhead rate :

Predetermined overhead rate = Budgeted Overheads / Budgeted Activity

                                                  = $ 351,960 /  8,400 machine hours

                                                  = $41.90 per machine hour

Therefore,

Applied Overheads = $41.90 × 8,460 machine hours

                                 = $354,474

Conclusion :

The applied manufacturing overhead for the year is closest to: $354,474

Sidewinder, Inc., has sales of $714,000, costs of $348,000, depreciation expense of $93,000, interest expense of $58,000, and a tax rate of 25 percent. The firm paid out $88,000 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Duela Dent is single and had $180,800 in taxable income. Use the rates from Table 2.3. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Calculate her income taxes.Prepare a balance sheet for Alaskan Peach Corp. as of December 31, 2019, based on the following information: cash = $203,000; patents and copyrights = $857,000; accounts payable = $286,000; accounts receivable = $263,000; tangible net fixed assets = $5,200,000; inventory = $548,000; notes payable = $179,000; accumulated retained earnings = $4,686,000; long-term debt = $1,150,000. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Answers

Answer:

Sidewinder, Inc.

The addition to retained earnings is:

=  $73,250

Duela Dent:

Income taxes = $45,200.

Alaskan Peach Corp.:

Balance Sheet as of December 31, 2019

Assets

Current assets:

Cash                                    $203,000

Accounts receivable             263,000

Inventory                               548,000     $1,014,000

Long-term assets:

Tangible net fixed assets 5,200,000

Patents and copyrights        857,000  $6,057,000

Total assets                                           $7,071,000

Liabilities and Equity:

Current liabilities:

Accounts payable             $286,000

Notes payable                      179,000     $465,000

Long-term liabilities:

Long-term debt                                     $1,150,000

Total liabilities                                       $1,615,000

Accumulated retained earnings          4,686,000

Common stock (missing figure)              770,000

Total liabilities and equity                   $7,071,000

Explanation:

a) Data and Calculations:

Sidewinder, Inc.:

Sales revenue  $714,000

Cost of goods sold  $348,000

Depreciation expense $93,000

Interest expense $58,000

Tax rate = 25%

Cash dividends paid = $88,000

Income Statement

Sales revenue                  $714,000

Cost of goods sold           348,000

Gross profit                    $366,000

Depreciation expense       93,000

EBIT                                $273,000

Interest expense              (58,000)

Income before tax         $215,000

Tax rate (25%)                   53,750

Net income                    $161,250

Cash dividends paid        88,000

Addition to Retained

 Earnings                      $73,250

Duela Dent (single):

Taxable income = $180,800

Income tax (25%)     45,200

Alaskan Peach Corp.:

Account Titles                          Debit       Credit

Cash                                    $203,000

Accounts receivable             263,000

Inventory                               548,000

Patents and copyrights        857,000

Tangible net fixed assets 5,200,000

Accounts payable                                  $286,000

Notes payable                                           179,000

Long-term debt                                      1,150,000

Accumulated retained earnings          4,686,000

Common stock (missing figure)              770,000

Totals                               $7,071,000 $7,071,000

Additional data: 1. Dividends declared and paid were $25,400. 2. During the year, equipment was sold for $8,700 cash. This equipment cost $18,200 originally and had a book value of $8,700 at the time of sale. 3. All depreciation expense, $15,600, is in the operating expenses. 4. All sales and purchases are on account. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash.

Answers

Answer:

Preparation of Cash flow statement is below:-

Explanation:

Please find the full information of question

The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $36,400 $19,600 Accounts receivable 33,000 19,200 Inventory 31,000 20,400 Equipment 59,400 77,600 Accumulated depreciation—equipment (29,800 ) (23,700 ) Total $130,000 $113,100 Liabilities and Stockholders’ Equity Accounts payable $28,700 $ 16,100 Income taxes payable 7,100 8,000 Bonds payable 26,300 32,500 Common stock 18,200 13,600 Retained earnings 49,700 42,900 Total $130,000 $113,100 NOSKER COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue $242,100 Cost of goods sold 175,500 Gross profit 66,600 Operating expenses 23,900 Income from operations 42,700 Interest expense 2,400 Income before income taxes 40,300 Income tax expense 8,100 Net income $32,200. Prepare a statement of cash flows for Nosker Company using the direct method.

                    Nosker Company

            Statement of cash flow

         For the year ended 31 December, 2017

Cash flow from operating activities

Receipt from customers       $228,300

($242,100 - $13,800)

Less Cash payment

Suppliers                                $173,500

($175,500 + $10,600 - $12,600)

Operating expenses             $8,300

(23,900 - $15,600)

Income tax expenses           $900

($8,100 + $900)

Interest expenses                $35,100

Cash flow from investing activities

Sale of equipment                                       $8,700

Net cash provided by Investing activities  $8,700

Cash flow from financing activities

Issuance of company stock                         $4,600

Less: Land Redemption                                $6,200

Less: Payment of cash dividend                   $25,400

Net cash used by financing activities           $27,000

Net Increase in cash                                         $16,800

Beginning cash                                                 $19,600

Cash at end of period                                       $36,400

Wide Open Industries Inc. has fixed costs of $475,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow:Product Selling Price Variable Cost per Unit Contribution Margin per UnitAA $145 $105 $40BB 110 75 35The sales mix for products AA and BB is 60% and 40%, respectively. Determine the break-even point in units of AA and BB. Round your interim computations to nearest cent, if required.a. Product AA unitsb. Product BB units

Answers

Answer:

Break-even point (units)= 475,000/ (131 - 93)= 12,500 units

AA= 12,500*0.6= 7,500

BB= 12,500*0.4= 5,000

Explanation:

Giving the following information:

Wide Open Industries Inc. has fixed costs of $475,000.

AA

Selling Price= $145

Variable Cost= $105

Contribution Margin per Unit= $40

BB

Selling Price= 110

Variable Cost= 75

Contribution Margin per Unit= 35

The sales mix for products AA and BB is 60% and 40%, respectively.

Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)

weighted average selling price= 145*0.6 + 110*0.4= 131

weighted average variable expense= 105*0.6 + 75*0.4= 93

Break-even point (units)= 475,000/ (131 - 93)= 12,500 units

AA= 12,500*0.6= 7,500

BB= 12,500*0.4= 5,000

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