Business
Peng Company is considering an investment expected to generate an average net income after taxes of $2,000 for three years. The investment costs $45,300 and has an estimated $7,500 salvage value.Assume Peng requires a 15% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)Peng Company is considering an investment expected to generate an average net income after taxes of $2,000 for three years. The investment costs $45,300 and has an estimated $7,500 salvage value.Assume Peng requires a 15% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)Cash Flow Select Chart Amount x PV Factor = Present ValueAnnual cash flow Present Value of an Annuity of 1 = Residual value Present Value of 1 = Net present value
Charlie Manufacturing Company has two production departments, Melting and Molding. Direct general plant management and plant security costs benefit both production departments. Charlie allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded: Melting Department direct overhead $350,000 Molding Department direct overhead 600,000 General plant management 180,000 Plant security 70,000 Melting Molding Number of employees 50 90 Space occupied (square feet) 20,000 80,000Machine hours 10,000 2,000 Direct labor hours 4,000 20,000 Required:Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments.
Current Attempt in Progress Cullumber Company entered into these transactions during May 2022, its first month of operations. 1. Stockholders invested $42,500 in the business in exchange for common stock of the company. 2. Purchased computers for office use for $31,900 from Ladd on account. 3. Paid $2,900 cash for May rent on storage space. 4. Performed computer services worth $17,900 on account. 5. Performed computer services for Wharton Construction Company for $5,400 cash. 6. Paid Western States Power Co. $8,300 cash for energy usage in May. 7. Paid Ladd for the computers purchased in (2). 8. Incurred advertising expense for May of $1,600 on account. 9. Received $14,000 cash from customers for contracts billed in (4).Create a tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
J.Crew is planning a new line of jackets for fall. It plans to sell the jackets for $100. It is having the jackets produced in the Dominican Republic. Although J. Crew does not own the factory, its product development and design costs are $400,000. The total cost of the jacket, including transportation to the stores, is $45.1. What is the breakeven quantity for this item? That is, the number that J. Crew will need to sell in order to not lose money?(Treat product development and design costs [$400,000] as fixed, cost of each jacket including transportation [$45] as unit variable cost)a. 6.846 jacketsb. 7,273 jacketsc. 9,118 jacketsd. 8,435 jackets2. What is the breakeven point, in sales revenue dollars?a. $727,300b. $684,600c. $843,500d. $911,800
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $452,000, and direct labor costs to be $2,260,000. Actual overhead costs for the year totaled $419,000, and actual direct labor costs totaled $1,930,000. At year-end, the balance in the Factory Overhead account is a: Multiple Choice $452,000 Credit balance. $386,000 Debit balance. $33,000 Debit balance. $33,000 Credit balance. $419,000 Debit balance.