Compute for the benefit ratio of the following projects. Project cost Gross income Operating cost Life of project Interest rate O a. 1.20 O b. 1.70 O c. 1.07 O d. 1.02 5,000,000 2,000,000 1,000,000 20 years 10%
Q: Thank you for your response. Can you please show calculations on how you arrived at the $72,560…
A: Goodwill is calculated by subtracting fair value of all assets takes from liabilities taken and…
Q: Other Information 1. The profits for the three months to April 30, 2021, are OMR1,200 million.…
A: Basic EPS is calculated by taking the income of the year and the number of shares outstanding on…
Q: Crane Corporation's master budget for the year is shown below: Sales (60,700 units) Cost of goods…
A: The term "flexible budget" refers to a budget that may be changed or amended depending on the…
Q: Selected T-accounts of Moore Company are given below for the just completed year: Raw Materials…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 9. If the company pursues the investment opportunity and otherwise performs the same as last year,…
A: Return on Investment (ROI) is a measure by which a person calculate the Profitability of the…
Q: Prepare November's direct materials purchases budget for Tobin's Frozen Pizza Inc. For those boxes…
A: Direct Material Purchase Budget is prepared by the Business Entity to find out the estimated…
Q: Debt General Bonds Lease Bonds Revenue Bonds Loans Capital Leases Total Highest Debt Lowest Debt…
A: Debts are the obligations for an entity. These are just like creditors so the payment of the…
Q: Mocha Company manufactures a single product by a continuous process, involving three production…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year…
A: The accumulated portion of a company's profits that are not paid out as dividends to shareholders is…
Q: Given the following information for SAMAH Company, answer the following questions: RO 260 840 Units…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: 6. What is the ROI related to this year’s investment opportunity? (Do not round intermediate…
A: Return of investment (ROI) stands for the Income, as a percentage of the Investment, that a Business…
Q: 6. Suppose that the company’s minimum required rate of return on operating assets is 13% and that…
A: Residual Income :— Residual income is income that one continues to receive after the completion of…
Q: The following information is available for Oriole Company for the year ended December 31, 2022.…
A: Cash Flow Statement is prepared to analysis, measure and interpret the cash inflows and cash…
Q: A Ltd acquired business of B Ltd. The Assets and Liabilities of B Ltd. were taken over at an agreed…
A: Capital Reserve :— If the amount of the consideration is lower than the value of the net assets…
Q: True/False An entity presenting a single statement of comprehensive income shall…
A: Financial statements are defined as the records that are prepared by the business entities as per…
Q: QUESTION 3 The following year-end totals were taken from the records of Langston Company.…
A: Cash Outflow - Cash Outflow is the amount going out of the organization. It shows in the negative…
Q: The Unearned Service Revenue account shows an end-of-year balance of P30,000. The adjusting entry to…
A: The Unearned revenue is the revenue received in advance but has not been earned yet. It has credit…
Q: Rodriguez Corporation issues 15,000 shares of its common stock for $209,500 cash on February 20.…
A: If shares were issued at a premium then the difference between issue price and par value is…
Q: The debits to Work in Process-Assembly Department for May, together with data concerning production,…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: 6 The financial year of Sweet and Cheap Trading ends on 31 October. The following balances were…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of…
A: Predetermined overhead rate is computed using estimated overhead costs and estimated activity…
Q: Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net)…
A: Equity is the component which is shown on the balance sheet of an entity. It shows the amount…
Q: A company reports basic earnings per share of $5.40, cash dividends per share of $2.20, and a market…
A: The ratio analysis helps to analyze the financial statements of the business on regular basis. The…
Q: The amount of the estimated average annual income for a proposed investment of $75,000 in a fixed…
A: Introduction: The monetary value of an investment depreciates over time due to use, wear and tear,…
Q: a. Discuss the various operational budgets prepared for: (i) a service organisation (ii) a trading…
A: Before going for the various operational budget we need to understand the meaning of Operational…
Q: Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor…
A: Variance is difference between actual expenditure and standard expenditure or difference between…
Q: A building acquired at the beginning of the year at a cost of $93,200 has an estimated residual…
A: Depreciation is the expense which is reported in the income statement under the expenses head. It is…
Q: Department W had 2,580 units, one-third completed at the beginning of the period; 12,000 units were…
A: Total number of units is the total of all the units on which cost has been incurred during the…
Q: Given the following cost and activity observations for Smithson Company's utilities, use the…
A: Given that, Highest activity (machine hours) = 29,000 Lowest activity (machine hours) = 20,000…
Q: Lansing Company’s current-year income statement and selected balance sheet data at December 31 of…
A: Cash flow from operating activities is a part of the cash flow statement and it includes transection…
Q: Carmelita Inc., has the following information available: Costs from Costs from Beginning Inventory…
A: Equivalent units of production is the amount of whole units equivalent to the partial units work in…
Q: QUESTION Analyze GBATT’s operational performance by describing its year over year performance.
A: Analysis of GBATT's operational performance by year over year: As we can see that in year 2021 in…
Q: Stellar Company began operations on January 2, 2019. It employs 10 individuals who work 8- hour days…
A: Working Note #1:— Salaries and Wages Expense for vacation days in 2019 = 10 employees×8 hours per…
Q: I'd like you to articulate the similarities and differences between Horizontal Analysis vs. Vertical…
A: The technique of comparing the line items over the time in the comparative financial statement in…
Q: The purpose of recording depreciation expense is to provide cash necessary to replace plant…
A: Depreciation expense is the non-cash outlay which is recorded on the fixed assets to report their…
Q: present three variances: (1) the $ change in profit due solely to me selling more or less units…
A: Variance analysis :— Variance analysis is nothing but the Difference between Standard Cost and…
Q: What is compounding? Question 21 options: The process of calculating the present value from…
A: The interest means the amount that is paid by the borrower to the lender for using the money of the…
Q: Compute conversion costs given the following data: direct materials, $394,600; direct labor,…
A: The costs are classified as direct materials and conversion costs. The conversion costs comprises…
Q: What is the recorded cost of the patent? Total Capitalized cost=
A: As per IAS 16 any cost directly associated with the product to bring to its intended use and desired…
Q: Bugler Corp had the following transactions for 2021 related to bad debts. Bugler began 2021 with…
A: Since part a is already done, I'm providing only parts b and c. When a debtor of a company fails…
Q: Redlands Inc. sold inventory for $100 on credit and charged 5% sales tax on the sale. The amount of…
A: Sales Revenue :— It is the income that is earned or received from sale of goods to customer or…
Q: Differentiate between Uruguay Round, the Failed Doha Round, and Bilateral Agreements?
A: Contract - An agreement between two or more parties is known as a contract. A party is any…
Q: 3 3. At September 30, the end of Beijing Company’s third quarter, the following…
A: Stockholder's Equity - Stockholder's Equity is the section of the balance sheet that includes Common…
Q: estimated residual value of life would be four years, rather than five. There was no change in the…
A: Depreciation is calculated based on the estimates like useful life, salvage value and other…
Q: Prepare a complete projected income statement in the contribution format for each scenario, in the…
A: Lets understand the basics. Contribution margin income statement is a statement prepared by the…
Q: The following information relates to ABC Pty Ltd, a business that manufactures electric products…
A: There are two ways of making a cash flow statement direct and indirect. The difference between them…
Q: A company has the following information: The production budget for the six-month period to 30…
A: Trade payables is one of the current liability of the business which is related with purchase of…
Q: Samuels Company prepares its statement of cash flows using the direct method and engaged in the…
A: The question is based on the concept of Cash Flow Statements.
Q: Bridgeport Corporation was organized on January 1, 2022. It is authorized to issue 15,000 shares of…
A: A ledger is a log or list of accounts that keep track of account transfers.
Q: 6. Depreciation Problem (DBB METHOD) (Show all formulas and all calculations). Melvin Noble, a…
A: Double Declining Balance Depreciation Method :— It is one of the method of depreciation in which…
Step by step
Solved in 2 steps
- Question 2 Compute the B/C ratio at i-10%, for the following project and justify if you selected it or not, based on economic view point (Banefits) $30 $30 $ 20 $ 20 $5 $5 $8 $8 $10 $10 (Recurring costs) (Investment)PW(benefits) PW(operating and maintenance costs) PW(capital cost) Project A £17 000 000 5 000 000 6 000 000 Project B £17 000 000 11 000 000 1 000 000 (a) Compute the benefit-cost ratios for both projects. (b) Compute the modified benefit-cost ratios for both projects. (c) Compute the benefit-cost ratio for the increment between the projects. (d) Compute the present worths of the two projects. (e) Which is the preferred project? Explain.The following table contains information about four projects in which Morales Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared about their potential project. E (Click the icon to view the projects information.) Requirements 1. Rank the four projects in order of preference by using the a. net present value. d. payback period. 2. Which method(s) do you think is best for evaluating capital investment projects in general? Why? c. internal rate of return. b. project profitability index. e. accounting rate of return. Requirement 1. Rank the projects in order of preference. (a) (b) (c) (d) (e) Net Present Profitability Internal Rate Payback Accounting Rate Value Index of Return Period of Return 1st preferred A C 2nd preferred 3rd preferred C 4th preferred ADB D AB
- Consider the following two projects, X and Y: Period Project X Project Y 0 $(100,000) $(120,000) 1 $22,000 $0 2 $22,000 $0 3 $22,000 $0 4 $22,000 $0 5 $45,000 $175,000 Regarding the internal rate of return, which of the following statements is correct? The internal rate of return of Project Y is greater than the internal rate of return of Project X. The internal rate of return of Project X is equal to the internal rate of return of Project Y. O The internal rate of return of Project X is greater than the internal rate of return of Project Y. The internal rate of return of Projects X and Y cannot be determined based on this information.Please help answer From Question 3.1 to 3.5 REQUIREDStudy the information provided below and calculate the following:3.1 Payback Period of Project A (answer expressed in years, months and days). 3.2 Accounting Rate of Return (on average investment) of Project B (answer expressed totwo decimal places).3.3 Net Present Value of both projets (amounts rounded off to the nearest Rand). 3.4 Benefit Cost Ratio of Project A (answer expressed to three decimal places). 3.5 Internal Rate of Return of Project B (answer expressed to two decimal places). INFORMATIONThe following information relates to two possible capital expenditure projects being considered by EdamLtd. Because of capital rationing, only one project can be accepted.Project A Project BInitial cost R800 000 R800 000Expected useful life 5 years 5 yearsAverage annual profit R80 000 R80 000Expected net cash inflows: R RYear 1 240 000 240 000Year 2 260 000 240 000Year 3 280 000 240 000Year 4 220 000 240 000Year 5 200 000 240 000The…Determine the best alternatives for a government project with the following data: PROJECT A B C ANNUAL BENEFIT P250,000.00 P320,000.00 P350,000.00 ANNUAL COSTS P100,000.00 P135,000.00 p180,000.00 B/C RATIO 2.5 2.37 1.94 What is the best Project and its incremental ratio? a. A = 1.2 b. A = 2 c. B = 2.0 d. B = 1.18
- If a $300,000 investment has a project profitability index of 0.25, what is the netpresent value of the project?a. $75,000b. $225,000c. $25,000d. $275,00014. A project has estimated the following benefit possibilities for the year: Benefits ($) Probability. 100 0.25 0.35 0.25 O $3,642 150 O $193.50 O $176 220 Expected benefit is: 290 $391.00 0.15Wallace Company is considering two projects. Their required rate of return is 10%. Which of the two projects, A or B, is better in terms of internal rate of return?
- a. Compute annual rate of return, Pay back period b NPV using 14% discounts rate , Is the Project acceptable using this discount rate Compute NPV using 11% discounts rate. Is the Project acceptable using this discount rateQuestion #1a) What is a âtransfer price?âb) List and describe 3 main reasons for using transfer prices.Question #2Consider the following information about a potential project:Investment requiredExpected annual project revenueExpected annual project expensesRequired rate of returnCurrent division return on investment$3,000,000$6,000,000$5,550,00011%18%a) Calculate the projectâs return on investment.b) Based solely on ROI, is this project in the firmâs best interests? Why or why not?c) Is this project in the division managerâs best interests? Why or why not?d) Perform DuPont Analysis on this project.e) What is the projectâs residual income?Question #3List and describe five traits that can differentiate a customer that is relatively inexpensive to service from a customer that is relatively expensive to service.Question #4List and describe five actions a firm can take if a customer appears…(c) Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, e.g. 10.50%.) Annual rate of return Project Bono % Project Edge % Project Clayton %