Cr. Rs.‚ the plant wont be operational at half the capacityS The Capex decisions are irreversible Projected P&L : Less Sales Raw Materials Utilities Employee Cost Depreciation Sales and Distn. Repair and maintenance + Administrative Exp. Int. on Working capital Total Cost PBT Tax PAT PAT + Depreciation Non manufacturing Expenses x Cash outflow‚ Inflow: Cash outflow – Investment‚ Incremental working capital (as all the capacity won’t be utilised in some cases) Cash Inflow
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Chapter 1 1. In a contest ‚all twenty finalists were given cash prize.The first winner was given RM860 ‚ the second RM 800 ‚the third RM740 and so on.Calculate the total amount of money awarded to all the finalists. Solution:The prizes are RM860‚RM800 ‚RM740….. It is an arithmetic progression .The first term a=rm860 ‚ common difference d=-60 and n=20. The total amount given is Sn = n/2[ 2a + (n-1)] S26 =20/2[ 2(860) +(20-1)(-60)] =RM5800 The amount is RM 5800 2. Find the minimum number of
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difficult to combat. There is also a decreasing interest rate in the market which means that Harnischfeger corporation will have to deal with high interest rate in the future. The change in the depreciation policies will improve the profitability of the firm now but in the long run there would be higher depreciation costs which lead to greater operating costs. As the plant and equipment age‚ there would be higher maintenance costs which would further cause higher operating
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INT0006: Introduction to Accounting and Finance FOUNDATION PROGRAMME Economics‚ Finance and Management INTO ID Number University ID Number ASSIGNMENT: Title: G. Osborne Ltd Maximum mark: 50 Word count: 1000 Actual word count: __________ student to complete DO NOT WRITE IN THIS SECTION Markers Introduction Quantitative information Narrative 1: 2: First Marker Comments ........................................................................................... ..................
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Waterways Continuing Problem 1 Waterways Continuing Problem WCP1 Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms‚ parks‚ commercial projects‚ and private homes. It has a centrally located factory in a U.S. city that manufactures the products it markets to retail outlets across the nation. It also maintains a division that provides installation and warranty servicing in six metropolitan areas. The mission
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income earned but not yet received 2. Accrued Expense – expenses incurred but not yet paid 3. Deferred Income – income received but not yet earned 4. Prepaid Expense – expenses paid but not yet paid Also‚ adjusting entries are made for: 5. Depreciation Expense‚ and 6. Doubtful Accounts Expense or Bad Debts Expense Composition of an Adjusting Entry Adjusting entries affect at least one nominal account and one real account. A nominal account is an account whose balance is measured from period
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IMBA -FIN 6425 – Quiz 1 Corporate Finance - Solution– Nimalendran This is an individual quiz and you should submit the answers on-line by the scheduled date. You are allowed to use any resources EXCEPT help from any other person. You are allowed to use EXCEL for the calculations. 1. Barkley Credit Union sets a low annual percentage rate (5%) for all its credit card customers instead of basing the interest rates on the customers’ credit scores. Consequently Barkley is exposed to ______________
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COST DEFINITIONS Fixed Cost – expenses that remain constant over a wide range of output volumes Variable Costs – expenses that vary proportionately with changes in output. Sunk Costs – expenses already incurred that have no salvage value Opportunity Costs – profits lost when one alternative is chosen over another that would have provided greater financial benefits. Avoidable Costs – expenses resulting from poor productivity incurred if an investment is not made. Out-of-Pocket Costs – actual
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A311: Final Exam Review Chapter 10 1. Interest Capitalization Delmar Corporation borrowed $200‚000 at 12% interest from state Bank on January 1‚ 2013‚ for the specific purpose of constructing special-purpose equipment to be used in its operations. Construction on the equipment began on 1/1/13‚ and the following expenditures were made prior to the project’s completion on 12/31/13: Expenditures Made in 2013 January 1 $100‚000 April 30 150‚000 November 1 300‚000 December 31 100‚000 Total Expenditures
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PPE – Cost Problem 11 – 1 On August 1‚ 2012‚ Benigno Company purchased a new machinery on a deferred payment basis. A down payment of P 500‚000 was made and 4 monthly instalments of P 1‚250‚000 each are to be made starting September 1‚ 2012. The cash equivalent price of the machine was P 4‚750‚000. Benigno incurred and paid installation costs amounting to P 150‚000. What si the amount to be capitalized as a cost of the machine? a. P 4‚750‚000 b. P 5‚500‚000 c. P 4‚900‚000
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