(Solved):Q: a Discuss the co…

Question

a Discuss the conditions under which the introduction of ABC is likely to be most effec- tive, paying particular attention to:

● product mix

● the significance of overheads and the ABC method of charging costs

● the availability of information collection procedures and resources, and

● other appropriate factors. 

b Explain why ABC might lead to a more accurate assessment of management perform- ance than absorption costing

(Solved):Q: Suppose you find…

Question
Suppose you find an annuity that pays 8% annual interest, compounded annually. If you invest in this annuity and
contribute $10, 000 annually for 10 years, how much money will be in the annuity after 10 years? Enter your answer
rounded to the nearest hundred dollars and omit the dollar sign and comma (For example $122, 570.21 should be input as
122600.)
Provide your answer below:

Image Transcription

Suppose you find an annuity that pays 8% annual interest, compounded annually. If you invest in this annuity and contribute $10, 000 annually for 10 years, how much money will be in the annuity after 10 years? Enter your answer rounded to the nearest hundred dollars and omit the dollar sign and comma (For example $122, 570.21 should be input as 122600.) Provide your answer below:

(Solved):Q: Warren Buffett’s…

Question

Warren Buffett’s Berkshire Hathaway Com-
pany went public in 1965. The public offering price

was $18 per share. The stock was trading at $190,500
on July 1, 2014, and the market value of the firm was
$304.8 billion.
(a) What is the firm’s average annual compound
growth rate over last 49 years?
(b) If Mr. Buffett’s company continues to grow at

the historical growth rate, what will be his com-
pany’s total market value when he reaches the

age of 100? (Buffett celebrated his 83th birthday
in 2014.)

(Solved):Q: The OK Company, …

Question
The OK Company, Inc. opened an agency in Makati in 2001. The
following is a summary of the transactions of the agency:
Sales orders sent to home office
66,000
Sales orders filed by home office in 2018
55,800
Freight in shipment to agency
1,320
Collections, net of 2% discount
47,628
Selling expenses paid from the agency
3,384
working fund
Administrative expenses charged to agency
5% of goss
sales
Samples shipped to agency:
Cost
3,600
Inventory, Dec. 31, 2018
1,320
The company maintains its gross margin on agency gross sales at 30%
excluding the freight cost on shipments to agency.
Agency's net income is?

Image Transcription

The OK Company, Inc. opened an agency in Makati in 2001. The following is a summary of the transactions of the agency: Sales orders sent to home office 66,000 Sales orders filed by home office in 2018 55,800 Freight in shipment to agency 1,320 Collections, net of 2% discount 47,628 Selling expenses paid from the agency 3,384 working fund Administrative expenses charged to agency 5% of goss sales Samples shipped to agency: Cost 3,600 Inventory, Dec. 31, 2018 1,320 The company maintains its gross margin on agency gross sales at 30% excluding the freight cost on shipments to agency. Agency's net income is?

(Solved):Q: Cash Payback Per…

Question

Cash Payback Period, Net Present Value Method, and Analysis

Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows:

Year Plant Expansion Retail Store Expansion
1 $162,000   $135,000  
2 132,000   159,000  
3 114,000   109,000  
4 103,000   76,000  
5 33,000   65,000  
Total $544,000   $544,000  

 

Each project requires an investment of $294,000. A rate of 10% has been selected for the net present value analysis.

Present Value of $1 at Compound Interest
Year 6% 10% 12% 15% 20%
1 0.943 0.909 0.893 0.870 0.833
2 0.890 0.826 0.797 0.756 0.694
3 0.840 0.751 0.712 0.658 0.579
4 0.792 0.683 0.636 0.572 0.482
5 0.747 0.621 0.567 0.497 0.402
6 0.705 0.564 0.507 0.432 0.335
7 0.665 0.513 0.452 0.376 0.279
8 0.627 0.467 0.404 0.327 0.233
9 0.592 0.424 0.361 0.284 0.194
10 0.558 0.386 0.322 0.247 0.162

Required:

1a.  Compute the cash payback period for each project.

  Cash Payback Period
Plant Expansion  
Retail Store Expansion  

1b.  Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar.

  Plant Expansion Retail Store Expansion
Present value of net cash flow total $fill in the blank 3 $fill in the blank 4
Less amount to be invested $fill in the blank 5 $fill in the blank 6
Net present value $fill in the blank 7 $fill in the blank 8

2.  Because of the timing of the receipt of the net cash flows, the   offers a higher  

(Solved):Q: 3. An asset cost…

Question
3. An asset costs $150,000 and has a salvage value of $15,000 after 10 years. What is the depreciation charge for the
4th year, and what is the book value at the end of the 8th
digit (SOYD) depreciation?
'year with (a) straight-line depreciation, (b) sum-of-years'-

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3. An asset costs $150,000 and has a salvage value of $15,000 after 10 years. What is the depreciation charge for the 4th year, and what is the book value at the end of the 8th digit (SOYD) depreciation? 'year with (a) straight-line depreciation, (b) sum-of-years'-

(Solved):Q: ZUMBA Bhd is a l…

Question
ZUMBA Bhd is a listed company. Ali, the accountant of the company druted the
financial statements for the year ended 31 December 20sl.
Extracts from the draft Statements of Comprehensive Income for the year ended
31 December 20x1, including comparative figures, wre shown below:
200
Profit before tax
Income tax expense
Profit for the year
20x
RM million RM million
150.5
42.5
108.0
1314
40.0
91.4
On I January 20xt, ZUMBA Bhd had 375 million ordinary shares of 50 sen each
in issue. On I April 201, ZUMIBA made a rights isse of one (1) for every three
(3) shares held at 60 sen each. The market price of each share prior to the issue
was RMI.
On 1 Janary 20x0, ZAG issuod RM37.5 million convertible bonds. Each unit of
RM100 bond in issue is convertible into 200 ordinary shares of 50 sen each on 31
December 20x3. The interest expense relating to the liability element of the bonds
for the year ended 31 December 201 was RM3.2 million and for 2010 was RM3
million. The tax efleet related so the interest expense was RMI million for 201
and RMO.9 million for 20x0.
Required:
Calculate the basic and diluted eamings per share for the year ended 31
December 20x1 and the restated earnings per share for 20x0.
Explain the importance of carmings per share.

Image Transcription

ZUMBA Bhd is a listed company. Ali, the accountant of the company druted the financial statements for the year ended 31 December 20sl. Extracts from the draft Statements of Comprehensive Income for the year ended 31 December 20x1, including comparative figures, wre shown below: 200 Profit before tax Income tax expense Profit for the year 20x RM million RM million 150.5 42.5 108.0 1314 40.0 91.4 On I January 20xt, ZUMBA Bhd had 375 million ordinary shares of 50 sen each in issue. On I April 201, ZUMIBA made a rights isse of one (1) for every three (3) shares held at 60 sen each. The market price of each share prior to the issue was RMI. On 1 Janary 20x0, ZAG issuod RM37.5 million convertible bonds. Each unit of RM100 bond in issue is convertible into 200 ordinary shares of 50 sen each on 31 December 20x3. The interest expense relating to the liability element of the bonds for the year ended 31 December 201 was RM3.2 million and for 2010 was RM3 million. The tax efleet related so the interest expense was RMI million for 201 and RMO.9 million for 20x0. Required: Calculate the basic and diluted eamings per share for the year ended 31 December 20x1 and the restated earnings per share for 20x0. Explain the importance of carmings per share.

(Solved):Q: Depreciation of …

Question
Depreciation of non-current assets is
due to : I. wear and tear when the
assets are used, II. physical
deterioration of the assets, III. low
market value after being used for
several years. IV. judgement by the
owner.
I,II
I, II
O I, II, III, IV
O I, II, II

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Depreciation of non-current assets is due to : I. wear and tear when the assets are used, II. physical deterioration of the assets, III. low market value after being used for several years. IV. judgement by the owner. I,II I, II O I, II, III, IV O I, II, II

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