Item1 10 points Time Remaining 59 minutes 50 seconds00:59:50 eBookItem 1 Time Remaining 59 minutes 50 seconds00:59:50 Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $150,000 and would have a sixteen-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $20,000 per year to operate and maintain, but would save $50,000 per year in labor and other costs. The old machine can be sold now for scrap for $15,000. The simple rate of return on the new machine is closest to (Ignore income taxes.)

Answer:

Denny Corporation

The simple rate of return on the new machine is closest to:

= 13.75%.

Explanation:

a) Data and Calculations:

Cost of new machine = $150,000

Estimated useful life = 16 years

Salvage Value = $0

Annual depreciation expense = $9,375 ($150,000/16)

Operation and maintenance cost per year = $20,000

Savings in labor and other costs per year = $50,000

The net savings in costs per year = $30,000 ($50,000 - $20,000)

Incremental net income = $20,625 ($30,000 - $9,375)

The simple rate of return = Net Savings per year/Cost of new machine * 100

= $20,625/$150,000 * 100

= 13.75%

b) This simple rate of return of 13.75% does not account for inflation or the time value of the investment.  So there is no discounting or calculation of the present values of the investment and the incremental net income.  Instead, it considers the annual depreciation expense that is attributable to the investment.

A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $192,000 of its accounts receivable as collateral for the loan. The contract provided that Miami would advance 85% of the gross amount of the receivables. Sterling Inc. continues to collect payments for the receivables and the cash from customers is then remitted to the finance company. The cash remitted is first applied to the finance charges, with the remainder applied to principal.

During the first month, customers owing $131,200 paid cash, less sales returns and allowances of $5,120, originally recorded as a refund liability. The finance charge at the end of the first month was $1,120. During the second month, the remaining receivables were collected in full, except for $1,280 off as uncollectible. Final settlement was effected with the finance company, including payment of an additional finance charge of $480.

Required:
a. Record the entry for Sterling to record the secured borrowing.
b. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

Exercise 10-3 Recording bond issuance and interest LO P1 On January 1, Boston Enterprises issues bonds that have a $1,950,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months

Alexandria's Dance Studio is currently an all-equity firm with earnings before interest and taxes of $338,000 (in perpetuity ) and a cost of equity of 14.2%. Assume the tax rate is 22%. The firm is considering adding $400,000 of debt with a coupon rate of 7% to its capital structure. The debt will be sold at par value. What is the levered value of the equity

Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows: January $300,000 February 500,000 March 750,000 All sales are on account. Seventy-five percent of sales are expected to be collected in the month of the sale, 20% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for January, February, and March. Enter all amounts as positive numbers.

Broha Company manufactured 1,764 units of its only product during 2019. The inputs for this production are as follows: 490 pounds of Material A at a cost of $1.50 per pound 340 pounds of Material H at a cost of $2.95 per pound 380 direct labor hours at $28 per hour The firm manufactured 2,100 units of the same product in 2018 with the following inputs: 540 pounds of Material A at a cost of $1.40 per pound 400 pounds of Material H at a cost of $2.70 per pound 440 direct labor hours at $26 per hour In 2019, the partial financial productivity of Material A is:

Question 3. A Lilian and Brad both graduated from a law college, decided to donate money to their college. They setup 5 scholarships per year starting in 2046 for every year (assume more than 100 years). If $40,000 is invested in the trust fund in the year 2021 and if it earns a very good rate of return of 10% per year, what will the amount of each scholarship are starting in 2035

Under the periodic inventory system, Village Fabrics purchased 25 yards of blue plaid fabric at a cost of $2.00 per yard on June 1; on June 3, 22 yards were sold of the blue plaid; a new shipment came in with 25 more yards at a cost of $1.25 per yard on June 5; on June 15, 17 yards of the blue plaid fabric were sold; Village Fabrics purchased another 25-yard bolt at a cost of $1.00 per yard on June 19; on June 27, 6 more yards had been sold. What is the value of inventory as of June 30 under the LIFO method

On August 2, ABC Co. receives a $7,900, 90-day, 10.5% note from its customer who is past due on what he owes. This note is replaces the customer's $7,900 account receivable. Prepare ABC's journal entry assuming the note is honored by the customer on October 31 of that same year. (Do not round intermediate calculations. Round your answers to nearest whole dollar value. Use 360 days a year.)

Required information
Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3
[The following information applies to the questions displayed below.]
Jarden Company has credit sales of $3,100,000 for year 2017. On December 31, 2017, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $19,564. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here.
December 31, 2017
Accounts Receivable Age of
Accounts Receivable Expected Percent
Uncollectible
$ 620,000 Not yet due 0.85 %
248,000 1 to 30 days past due 1.60
49,600 31 to 60 days past due 6.10
24,800 61 to 90 days past due 30.75
4,960 Over 90 days past due 64.00
Problem 9-3A Part 1
Required:
1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method.
Problem 9-3A Part 2
2. Prepare the adjusting entry to record bad debts expense at December 31, 2017.

Comparative advantage in production is achieved by: Group of answer choices Subsidizing, specializing, and lowering the price of an exported good. Being able to produce a good with fewer inputs than in other countries. Having terms of trade that are better than the terms of trade faced in other countries. Having a lower opportunity cost of producing a good relative to that of other countries.

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity is 1710. If the number of students who actually got their orientation session is 1500, What is the ratio of the utilization of the system to its efficiency

OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1 the company issues a one-year note for the amount of $5.3 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: (Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)

AbbVie Pharmaceuticals (headquartered in Lake Forest, IL) has commenced a $80 million R&D project to develop a new drug to treat a rare disease. So far, it has spent $25 million of the $80 million, and preliminary results are positive. If the remaining $55 million is invested, the drug will certainly be completed and is expected to generate profit1 of $100 million (in present value) for AbbVie. Meanwhile, a research biologist at Northwestern has independently developed a treatment for the same disease. The scientist has offered to sell her invention to AbbVie for $2 million. Her drug would be just as effective as AbbVie’s drug, and would also generate profit of $18 million in present value.

Required:
a. Should AbbVie buy the drug for $2 million?
b. What is the most AbbVie should be willing to pay for the Illinois Tech researcher’s drug?
c. How would your answer change if the Illinois Tech biologist had developed her drug two years ago, before AbbVie started its own R&D project?
d. Suppose that Merck has also expressed interest in the biologist’s invention. If Merck buys the drug, there is a 50% chance that it will beat AbbVie’s drug to market. If that happens, suppose the profit of the second drug to market is zero. Now how much should AbbVie be willing to pay for the drug? How much should Merck be willing to pay?

QUESTION 9 of 10: Which of the following is not part of the process of passion transference?

a) The fan attends an event where branding/sponsorship is present,
b) The fan sees the brand as special and set apart from competitors.
c) The fan does not see the relevance of the brand advertisement,
d) The fan purchases the brand,

Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 Skip to question [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 1,392,180 Credit sales $ 3,376,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 1,022,928 debit Allowance for doubtful accounts $ 22,240 debit Problem 7-2A (Algo) Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. Bad debts are estimated to be 2% of credit sales. Bad debts are estimated to be 1% of total sales. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.

Which of the following statements concerning the add-on interest method is true?
O Interest is added to the amount borrowed before the payments are calculated.
O It usually results in a higher APR than the discount interest method.
O The lender subtracts the interest due from the principal before the borrower receives the loan proceeds.
O It results in a lower APR than the simple interest method.

What are various options to regulate monopolies in the United States?

I’ll give brainliest

During the months of January and February, Hancock Corporation sold goods to three customers. The sequence of events was as follows:

Jan.
6 Sold goods for $1,400 to S. Green and billed that amount subject to terms 3/10, n/30.
6 Sold goods to M. Munoz for $690 and billed that amount subject to terms 3/10, n/30.
14 Collected cash due from S. Green. Feb. 2 Collected cash due from M. Munoz.
28 Sold goods for $400 to R. Reynolds and billed that amount subject to terms 3/10, n/45.

Required:
Assuming that Sales Discounts is treated as a contra-revenue, compute net sales for the two months ended February 28.

On January 1, 2017, Desert Company purchased a copyright for $2,500,000, having an estimated useful life of 16 years. In January 2021, Desert paid $326,927 for legal fees in a successful defense of the copyright. Copyright amortization expense for the year ended December 31, 2021, should be?

How can I be more swag?

On January 1, 2021, Peach Corporation issues $600,000, 5-year, 7% bonds at par. Interest is paid semiannually on January 1 and July 1. Peach Corporation uses the straight-line method of amortization. The company's fiscal year ends on December 31. Which of the following statements about the journal entry for these bonds on July 1, 2021 is TRUE?
a. The entry decreases assets and increases stockholder's equity
b. The entry increases expenses and increases assets.
c. The entry decreases net income and increases liabilities
d. The entry decreases assets and stockholder's equity

On April 1, Sunland Company purchased for $1620000 a tract of land on which a warehouse and office building was located. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost Land $620000 $570000 Warehouse 390000 360000 Office building 790000 690000 $1800000 $1620000 What are the appropriate amounts that Sunland should record for the land, warehouse, and office building, respectively

Policy makers have been trying to diminish the gender gap in pay for several decades. Let's begin by determining the gender gap in 2004. For both of the maps, move the timeline back to 2004. The overall statistics give two values. The first value (the National Median) is the amount earned by the person for whom half of the country earn more and half earn less. Normally in thinking about pay inequality, we give the amount that women earn for every dollar a man earns. To get that number, divide the National Median for women by the National Median for men. In 2004 how much did women earn, on average for every dollar earned by a man?
a. $0.96
b. $1.32
c. $0.76
d. $0.80

you can have your cake or chose to eat it
this is example of property rights providing tye right for you to
enjoy property

own property
exclude people from your property
Exchange property

ElectroWizard Company produces a popular video game called Destructo which sells for $32. Last year ElectroWizard sold 50,000 Destructo games, each of which costs $6 to produce. ElectroWizard incurred selling and administrative expenses of $80,000 and depreciation expense of $10,000. In addition, ElectroWizard has a $100,000 loan outstanding at 12%. Their tax rate is 40%. There are 100,000 common shares outstanding.

Required:
Prepare an income statement for Electro Wizard in good form and include earnings per share (EPS)

why do we carry out stock taking​

a decrease in supply is illustrated by the supply curve shifting to the

left or right

The following data (in millions) are taken from the financial statements of Tarrow Corporation: Recent Year Prior Year Revenue $386,972 $356,000 Operating expenses 326,634 303,000 Operating income $60,338 $53,000 a. For Tarrow Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: Revenue Operating expenses Operating income Amount of Change (in millions) Percent of Change (round to 1 decimal place) Increase or Decrease 1. Revenue $fill in the blank 1 30,976 fill in the blank 2 % 2. Operating expenses fill in the blank 4 fill in the blank 5 3. Operating income fill in the blank 7 fill in the blank 8 b. During the recent year, revenue and operating expenses . As a result, operating income , from the prior year.

Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items carried by its dot clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 190,000 items were shipped to customers using 8,300 direct labor-hours. The company incurred a total of $29,050 in variable overhead costs. According to the company’s standards, 0.03 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.55 per direct labor-hour. Required: 1. What is the standard labor-hours allowed (SH) to ship 190,000 items to customers? 2. What is the standard variable overhead cost allowed (SH × SR) to ship 190,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead efficiency variance?

Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.76 percent. Selected operating data for the three divisions follow:

Peak View Grand
Sales revenue $339,000 $223,000 $300,000
Cost of goods sold 197,000 111,000 188,000
Miscellaneous operating expenses 43,000 32,000 38,000
Average invested assets 1,320,000 960,000 1,185,000.

Required:
a. Compute the return on investment for each division.
b. Compute the residual income for each division.