Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8.4 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $11.2 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $22.4 million to build, and the site requires $990,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Answer:

$34,590,000

Explanation:

Kenny incorporation is looking at setting up a new manufacturing plant in South park

The company purchased some lands six years ago $8.4 million

The land will net $11.2 million if sold today

The plant will cost $22.4 million to build

The site requires $990,000 worth of grading before construction

Therefore the proper cash flow can be calculated as follows

= opportunity costs + costs + upgradation

= $11,200,000 + $22,400,000 + $990,000

= $34,590,000

Hence the proper cash flow is $34,590,000

On April 1, 2017 the Reba Company purchased 10%, $800,000 bonds of the Trading Up Company at par plus accrued interest. These bonds were classified as an investment in trading securities. The bonds pay interest on June 30 and December 31 each year. The entry by Reba on April 1, 2017, would include a: _________

Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment.

Nash's Trading Post, LLC Balance Sheet December 31, 2022

Cash $185000 Accounts payable $195000
Accounts receivable 140000 Salaries and wages payable 25000
Inventory 150000 Mortgage payable 225000
Prepaid insurance 85000 Total liabilities $445000
Stock investments 250000
Land 250000
Buildings $300000 Common stock $335000
Less: Accumulated
depreciation (55000) 245000 Retained earnings 725000
Goodwill 200000 Total stockholders' equity $1060000
Total assets $1505000 Total liabilities and stockholders' equity $1505000

Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.

What big announcement at the Consumer Electronics Show in Las Vegas in January 2008 shifted this format war in Sony's favor

At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following information: Job Direct Materials Direct Labor Machine Hours Job 765 $5,670 $3,500 27 Job 766 8,900 4,775 44 Job 765 produced 152 units, and Job 766 consisted of 250 units. Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour. a. Determine the balance on the job cost sheets for each job. Job 765 $ Job 766 $ b. Determine the cost per unit at the end of April. Round your answers to the nearest cent. Job 765 $ Job 766 $

which of the following is placed in the credit column of the trial balance
a.purchases
b. rent expenses
furniture
sales

Why might a consumer want to know the estimated yearly energy cost for operating an appliance?

Max bought 700 shares of an oil company's stock for $15.60 per share. How much did Max spend?

Planning to HireHuman resource planning cannot be done in a vacuum. The HR department needs to understand the company's strategic plan and be able to hire or shed jobs as necessary. As you read the following case, think about how Alicia Brooks, HR manager at Edu-Films, needs to take a balanced approach to hiring the right amount of staff for the company's next big project. In this exercise, please read the mini-case and answer the questions that follow. Edu-Films is a small design company that writes and produces videos for the elementary and high school education market. The company is in the final stages of negotiating a new contract with a U.S. publisher to create 40 videos for a new K-12 math series, and the videos need to be available by the spring of 2017. Business for Edu-Films has been slow over the past three years, and the company has kept staff levels to a minimum. Mindful of the company's flat fiscal results over the last couple of years but understanding that new hires must be ready to go once the agreement is signed, HR manager Alicia Brooks must put together a cohesive hiring plan.1). What should be Alicia's first step?A). Check with her colleagues in the industry for possible new hires.B). Get together with company execs for a planning session.C). Set goals for hiring new staff.D). Forecast labor supply and demand within the company once video work starts.E). Take out a recruitment ad in the local newspaper.2). Forecasting can use statistical or __________ methods.A). experimentalB). historicalC). scientificD). judgmentalE). experiential3). Statistical methods are excellent for capturing what type of data?A). Subjective dataB). Scientific dataC). Historical trendsD). Expert dataE). Instinctive data4). After forecasts of labor demand and supply are known, what comes next in the planning process?A). Budget reviewB). Program implementationC). Program evaluationD). Employee appraisalsE). Goal setting and strategic planning

If the marginal utility from consuming the ninth unit of a product is 3 and the total utility from all nine units is 115, then the total utility from consuming eight units must be Multiple Choice 112. 118. 38.

For each of the following transactions for the Sky Blue Corporation, give the accounting equation effects of the adjustments required at the end of the month on October 31.

a. Collected $2,250 rent for the period October 1 to December 31, which was credited to Unearned Revenue on October 1.
b. Paid $1,080 for a two-year insurance premium on October 1 and debited Prepaid Insurance for that amount.
c. Used a machine purchased on October 1 for $42,000. The company estimates annual depreciation of $4,200

Ultimately, the responsibility of the project manager is to: _____________

a. make sure the customer is satisfied.
b. finish the project as quickly as possible.
c. finish the project as cost effectively as possible.
d. make independent decisions.

"the difference between market price and the higher price that some individuals in the market would be willing to pay is"

Which of the following is a TRUE statement on service areas?

a. Service areas will be the same for different organizations.
b. Hospitals in rural areas have ill-defined service areas for their particular services.
c. The service areas for public health departments are homogenous within a state, without regard to whether they are metropolitan or rural.
d. Determining the geographic boundaries of the service area may be highly subjective and is usually based on patient histories, the reputation of the organization, and available technology

Which statement best describes the current price for the good shown in this
graph of supply and demand schedules?
Supply and Demand Graph
Price of pizza
Demand curve Supply curve
$12.50
$10.00
$7.50
$5.00
$3.00
Current price
0
100 200 300 400 500
Quantity
O A. The current price equals the equilibrium price for the good.
B. The current price is higher than the equilibrium price for the good.
C. The current price will result in a low supply for the good
D. The current price will result in a low demand for the good.

The Coughlin Company retails twoâ products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is asâ follows:

Standard Carrier Deluxe carrier Total
Units sold 187,500 62,500 250,000
Revenues at $28 and $50 per unit 5250000 3125000 8375000
Variable costs at $18 and $3 per unit 3375000 1875000 5250000
Contribution margins at $10 and $20 per unit 1875000 1250000 3125000
Fixed costs 2250000
Operating income 875,000

Requirement:
a. Compute the breakeven point inâ units, assuming that the company achieves its planned sales mix.
b. Compute the breakeven point in units (a) if only standard carriers are sold and (b) if only deluxe carriers are sold.
c. Suppose 250,000 units are sold but only 50,000 of them are deluxe. Compute the operating income. Compute the breakeven point in units.

Suppose the inflation rate is 3% when a 15-year mortgage loan is given at a fixed rate of 4.5%. Five years later the inflation rate rises to 4%. What impact does this change have on the nominal interest rate and the real interest rate on the mortgage loan

Assume that on December 31, 2019, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Sheffield Storage Company. The following information pertains to this lease agreement.

1. The agreement requires equal rental payments of $66,699 beginning on December 31, 2019.
2. The fair value of the building on December 31, 2019 is $487,529.
3. The building has an estimated economic life of 12 years, a guaranteed residual value of $9,000, and an expected residual value of $6,400. Kimberly-Clark depreciates similar buildings on the straight-line method.
4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor.
5. Kimberly-Clarkâs incremental borrowing rate is 8% per year. The lessorâs implicit rate is not known by Kimberly-Clark.

Required:
a. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2019, 2020, and 2021.
b. Suppose the same facts as above, except that Kimberly-Clark incurred legal fees resulting from the execution of the lease of $5,000, and received a lease incentive from Sheffield to enter the lease of $1,000. How would the initial measurement of the lease liability and right-of-use asset be affected under this situation?
c. Suppose that in addition to the $66,699 annual rental payments, Kimberly-Clark is also required to pay $5,000 for insurance costs each year on the building directly to the lessor, Sheffield Storage. How would this executory cost affect the initial measurement of the lease liability and right-of-use asset?

EcoFabrics has budgeted overhead costs of $1,001,700. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 477,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $381,600 and $620,100 is allocated to the design cost pool. Additional information related to these pools is as follows.

Wool Cotten Total

Machine hours 114,000 114,000 228,000
No of Setups 1,140 570 1710

Required:
a. Calculate the overhead rate using activity based costing.
b. Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing.
c. What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton?

Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia, who is also an employee. Aleshia is in the 24% tax bracket, and Rover is subject to a 21% rate. Because Aleshia's contribution to the business is substantial, Rover believes that a $145,200 bonus in the current year is reasonable compensation and should be deductible by the corporation. However, Rover is considering paying Aleshia a $145,200 dividend because the tax rate on dividends is lower than the tax rate on compensation.

Required:
a. Regarding taxes, which would benefit Aleshia the most?
b. The $135,600 dividend because after taxes she would have $__________ from the dividend and $_______ from the bonus.
c. Regarding taxes, which would benefit Rover Corporation the most?
d. Considering the two parties together, which alternative would provide the most overall tax savings? The $135,600 bonus because when the overall effect to both the corporation and the shareholder are considered the net tax savings is $_______.

Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $15.98 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $745,726 per year. Administrative cost (all fixed) totals $527,604. Comer expects to sell 239,900 strings of light next year.
1. Calculate the break-even point in units.
2. Calculate the margin of safety in units.
3. Calculate the margin of safety in dollars.

Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $97 Units in beginning inventory 500 Units produced 8,400 Units sold 8,500 Units in ending inventory 400 Variable costs per unit: Direct materials $20 Direct labor $37 Variable manufacturing overhead $1 Variable selling and administrative $11 Fixed costs: Fixed manufacturing overhead $67,200 Fixed selling and administrative $161,500 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. What is the net operating income for the month under variable costing

Would you buy a product that costs more because ethical business practices are a part of production costs? If so, how much and for what causes are you willing to spend more? If not, argue why lower priced goods make more sense.

How does diversity help companies have a competive advantage?

buying a $50 Bouquet of roses for Valentine’s Day is an example of a(n) ____ purchase. (fill in blank)
————-
a-esteem
b-physiological
c-security
d-self actualization

U.S. Robotics Inc. is considering changing its capital structure to 60% debt and 40% equity. Increasing the firm’s level of debt will cause its before-tax cost of debt to increase to 10%. Use the Hamada equation to unlever and relever the beta for the new level of debt. What will the firm’s weighted average cost of capital (WACC) be if it makes this change in its capital structure? (Hint: Do not round intermediate calculations.) The optimal capital structure is the one that the WACC and the firm’s stock price. Higher debt levels the firm’s risk. Consequently, higher levels of debt cause the firm’s cost of equity to .

Bagsâ (PB) is a designer ofâ high-quality backpacks and purses. Each design is made in small batches. Eachâ spring, PB comes out with new designs for the backpack and for the purse. The company uses these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. Whenâ completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is asâ follows:

Direct materialsâpurses 319155
Direct materialsâbackpacks 454995
Direct manufacturing laborâpurses 99000
Direct manufacturing laborâbackpacks 113000
Setup 64000
Shipping 73000
Design 169000
Plant utilities and administration 221000
Total 1513150


Backpacks Purse Total
Number of bags 6175 3075 9250
Hours of production 1665 2585 4250
Number of batches 120 80 200
Number of designs 2 2 4

Required:
a. Identify the cost hierarchy level for each cost category.
b. Identify the most appropriate cost driver for each cost category. Explain briefly your choice of cost driver.
c. Calculate the budgeted cost per unit of cost driver for each cost category.
d. Calculate the budgeted total costs and cost per unit for each product line.
e. Explain how you could use the information in requirement 4 to reduce costs.

A company in the growth phase of its product life cycle will normally have which of the following patterns of cash flows? Select one: a. Negative or positive cash flows from operations, negative cash flows from investing and negative cash flows from financing b. Positive cash flows from operations, positive cash flows from investing and positive cash flows from financing c. Negative cash flows from operations, negative cash flows from investing and positive cash flows from financing d. Negative or positive cash flows from operations, negative cash flows from investing and positive cash flows from financing

The Company has prepared a sales budget of finished units for a​ 3-month period. The company has an inventory of units of finished goods on hand at December 31 and has a target finished goods inventory of units at the end of the succeeding quarter. It takes gallons of direct materials to make one unit of finished product. The company has inventory of gallons of direct materials at December 31 and has a target ending inventory of gallons at the end of the succeeding quarter. How many gallons of direct materials should Company purchase during the 3 months ending March​ 31? Select the labels and enter the amounts to calculate the direct materials​ (gallons) to be purchased.

How technological change affect retail business industry?