Question 1: 2D1-LS02 Which of the following items is not an example of a capital expenditure? A ventilation system upgrade for EPA compliance. Project bonuses paid to employees. Purchase of a new assembly machine that will cut labor and maintenance costs. Purchase of a new computer server for the research and development group. Long-term capital budget expenditures are often grouped in one of the following categories: new machines and equipment intended for expansion‚ replacement of existing
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the NPV and long term prospective of dry bulk industry. Upon business operating in U.S or H.K‚ we consider four scenarios accordingly. In convenient of financial analysis‚ we propose several assumptions concerning tax rate‚ expected daily hire rate salvage value and growth rate. Under different scenarios valuation‚ we apply certain assumptions matched with scenario’s condition‚ as the following calculation indicating. Based on the analysis using data in case‚ we finally recommend that Ocean Carries
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Annual net cash inflow = $4‚000 Salvage Value = $0 Required rate of return = 16% Item Years Amount of cash flow 16% factor Present Value of Cash flow Annual net cash flow 1 to 10 $4‚000 4.833 $19‚332 Intial Investment Now $15‚000 1 $15‚000 Net Present Value (a-b) $4‚332 Project B Initial Cost = $15‚000 Life of the project = 10 years Cash inflow = $6000 (60‚000/10 years) Salvage Value = $0 Required rate of return
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equipment on January 1‚ 2010‚ at a total invoice cost of $400‚000. The equipment has an estimated salvage value of $10‚000 and an estimated useful life of 5 years. The amount of accumulated depreciation at December 31‚ 2011‚ if the straight-line method of depreciation is used‚ is: | $160‚000. | | $78‚000. | | $80‚000. | | $156‚000. | The units-of-activity method takes salvage into consideration; therefore the depreciable cost is $10‚000. This amount is divided by total estimated
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sales agents = 15% 6. Returns and allowances = 2.5% of gross sales 7. COGS = 28% of Gross Sales ($0.56 per bottle) 8. Monthly Inventory 9. Capex a. 2 NAB Mixers of $28‚500 each with life of 5 years and salvage value of $5‚000 b. 2 Bottling Machinery of $9‚600 each with life of 6 years and salvage value of $1‚500 c. 4 Panel Vans of $10‚000 each with life
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of Return = $12‚083 ÷ $130‚000 ≈ 9.3% Example 2: Compare the following two mutually exclusive projects on the basis of ARR. Cash flows and salvage values are in thousands of dollars. Use the straight line depreciation method. Project A: Year 0 1 2 3 Cash Outflow -220 Cash Inflow 91 130 105 Salvage Value 10 Project B: Year 0 1 2 3 Cash Outflow -198 Cash Inflow
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Fraud Cases: Violations of Generally Accepted Accounting Principles (GAAP) Section 1 In July 2002 the Sarbanes-Oxley Act was passed by the U.S. Senate by a vote of 98 to 0. The bipartisan support for the legislation emanated directly from the investing public’s lack of tolerance for financial statement fraud. Not surprisingly‚ when formulating its post-Sarbanes technical audit guidance‚ the Public Company Accounting Oversight Board (PCAOB) made it clear that detecting fraud must be the focus
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Financial Accounting John J. Wild Sixth Edition McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies‚ Inc. All rights reserved. Chapter 08 Reporting and Analyzing Long-Term Assets Conceptual Learning Objectives C1: Explain the cost principle for computing the cost of plant assets. C2: Distinguish between revenue and capital expenditures‚ and account for them. C3: Explain depreciation for partial years and changes in estimates. 8-3 Analytical Learning Objectives
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the NPV and long term prospective of dry bulk industry. Upon business operating in U.S or H.K‚ we consider four scenarios accordingly. In convenient of financial analysis‚ we propose several assumptions concerning tax rate‚ expected daily hire rate salvage value and growth rate. Under different scenarios valuation‚ we apply certain assumptions matched with scenario’s condition‚ as the following calculation indicating. Based on the analysis using data in case‚ we finally recommend that Ocean Carries
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Shoulder dislocation Epidemiology Anterior shoulder dislocation is the commonest dislocation in the body • Makes up 95% of shoulder dislocations • It occurs in around 2% of individuals at some stage • Dislocation is more common in the dominant limb • In young people it is much more common in males • By the 6th to the 7th decade it is more common in females • Instability is bilateral in around 15% Conceptualizing instability Two acronyms are used to think about
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