(five points) Question 2: Determine the total costs of direct materials for August purchases. (five points) Problem 2 - Russell Company has the following projected account balances for June 30, 20X2: Accounts payable | $40,000 | Sales | $800,000 | Accounts receivable | 100,000 | Capital stock | 400,000 | Depreciation, factory | 24,000 | Retained earnings | ? | Inventories (5/31 & 6/30) | 180,000 | Cash | 56,000 | Direct materials used | 200,000 | Equipment, net | 240,000 | Office salaries | 80,000 | Buildings, net | 400,000 | Insurance, factory | 4,000 | Utilities, factory | 16,000 | Plant wages | 140,000 | Selling expenses | 60,000 | Bonds payable | 160,000 | Maintenance, factory | 28,000 | Question 1: Calculate the budgeted net income for June 20X2. (five points) Question 2: Calculate the budgeted total assets as of June 30, 20X2. (five points) Problem 3 - Tylon's Hardware uses a flexible budget to develop planning information for its warehouse operations.
We have a 900 000 Bahts expenditure for Capital Investment (chairs, tables, karaoke equipment, etc), so the initial outlay of the project is between 1 700 000 and 2 100 000 Bahts. We will now analyze the incremental cash flows for the project. We have sales revenues of 4 672 000 (32 tables used twice a
The asset purchase option will generate $700,000 million more tax obligation than stock purchase do. However, under the asset purchase method, the goodwill generated from this transaction could be depreciated over 15 years, or $900,000 annually over 15 years. To justify the price of $40 million, we adjusted an APV approach. We derived the unlevered beta from the comparable firm Modtech. Adding other assumptions to our valuation model, we concluded a firm value of $83.92 million, and 73% of the firm value is $65.17 million.
Currently, the price to rent one of these units is $5,000 per year, and 15 units are rented. Costs of capital and labor are the only significant explicit expenses. The labor and capital inputs can be varied daily. Bond used a $100,000 inheritance to start the business and is quite pleased that he has received several offers in the past month to sell the firm for $300,000. The firm’s accountant has prepared an income statement for 1998 that shows a profit of $15,000 after paying Bond a salary of $25,000 for the year.
1 or No. 2 market share in every market in the world,"(Reed) Shareholders in Delta and Northwest would exchange their shares for stock in the new merged company. The Northwest (NWA) shareholders would get 1.25 shares in the new Delta for each Northwest share. (Reed) The carriers themselves believe that the new merged company would generate $32 billion in annual revenue and the firm as a whole would be valued at $17.7 billion.
Danko uses a predetermined overhead rate to apply overhead to units produced. As of January 1, 2010, Danko anticipated incurring 1,000 hours of direct labor. Danko estimated overhead for 2010 of $5,000 plus $8 per hour. 4. Danko incurred depreciation of $8,000 during 2010, of which $6,000 was factory depreciation and $2,000 was office depreciation.
2. Consider a project costing $1m each year from year 1 to year T. Then starting in year T+1, the project will generate a profit of $700k each year, forever. a) Write a formula for the present value of this project with a discount rate of r. b) Write a formula in terms of r for the value of T at which you break even (ignoring the issue of whether T is an integer). 3. Suppose you had $10,000 to invest for one year.
Reporting Intercorporate Interests (Equity vs Cost Method) 1. On January 1, 2007, Rotor Corporation acquired 30 percent of Stator Company’s Stock for $150,000. On the acquisition date, Stator reported Net assets of $450,000 valued at historical cost and %500,000 stated at fair Value. The difference was due to the increased value of buildings with a remaining life of 15 years. During 2007 and 2008 Stator reported Net Income of $25,000 and $15,000 and paid dividends $10,000 and $12,000, respectively.
In 1869 the first fully professional baseball club, the Cincinnati Red Stockings, was formed and went undefeated against a schedule of semipro and amateur teams. By the following decade, American newspapers were referring to baseball as the "National Pastime" or "National Game." The first attempt at forming a "major league" was the National Association, which lasted from 1871 to 1875. The "major league" status of the NA is in dispute among present-day baseball historians, and Major League Baseball does not include the NA among the major leagues. The National League, which still exists, was founded in 1876 in response to the NA's shortcomings.
The third point is that a closer look at the expenses reveals that professional athletes don’t get to keep all the money they make. Now some will argue that they definitely do get paid more money than they deserve. Right now America is in an 11 trillion dollar debt situation according to http://www.brillig.com. When the salary cap for the upcoming NFL season is $102.5 million per team, and we currently have 32 teams, we are paying $3.28 billion to teams to spend half on players and equipment and the other half on their $50 million dollar houses and their $4 million dollar cars. They would argue that anyone could easily live a year with $150,000 so when we could spend $50 million less on the NFL, then we could easily save $1 billion a year.