class. The machinery is expected to have a salvage value of $25‚000 after 4 years of use. The new line would generate incremental sales of 1‚250 units per year for four years at an incremental cost of $100 per unit in the first year‚ excluding depreciation. Each unit can be sold for $200 in the first year. The sales price and cost are expected to increase by 3% per year due to inflation. Further‚ to handle the new line‚ the firm’s net operating working capital would have to increase by an amount
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PYROLYSIS PLANT PROPOSED FINANCIAL ASPECTS ( 2 ton conversion per day--3 batches of 8 hours each‚ Assumption : 26 working days per month ) A. FIXED CAPITAL (i) Land and Building Deposit for 2250sqft 550‚000.00 Total 550‚000.00 (ii) Machinery & Equipment SI.No. Description Qty. Rate (Rs.) Value (Rs.) 1 2 tons conv. Machine 1 6‚820‚000.00 6‚820‚000.00 2 Office Furniture 10‚000.00 Taxes‚ licensing expenses‚ trasnportation
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A Guide to Earnings and Financial Reporting Quality A Guide to Earnings and Financial Reporting Quality Quality of reported financial information is a critical element in evaluating financial statement data. The higher the quality of financial reporting‚ the more useful the information is for business decision making. 5-2 A Guide to Earnings and Financial Reporting Quality There are a number of areas on the earnings statement that provide management with opportunities for influencing the
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rate of return on their investment of capital in the proposed new bank‚ are they likely to proceed with their charter application given the above estimates? 2. Do problem 1 under the following assumptions: a tax rate of 30% and straight line depreciation of physical assets. 3. Hampton Savings Bank is considering the establishment of a new branch office at the corner of Queen Street and Victoria Boulevard. The savings association’s economics department projects annual operating revenues of $1
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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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accountant would then record a debit to the rent expense account and a credit to the prepaid rent account in the amount of $1000‚ each month for the next three months. (Nobels‚ et al. 139) Another example of a prepaid transaction is recording the depreciation of plant assets. A plant asset is any asset the business has that may depreciate in value
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inventory 11‚700 Trucks 32‚000 Accum. depreciation-Trucks - Equipment 45‚000 Accum. depreciation-Equipment 12‚200 Accounts payable 5‚000 Estimated warranty liability 1‚400 Unearned services revenue - Interest payable - Long-term notes payable 15‚000 D. Buggs‚ Capital 59‚700 D. Buggs‚ Withdrawals 10‚000 Extermination services revenue 60‚000 Interest revenue 872 Sales (of merchandise) 71‚026 Cost of goods sold 46‚300 Depreciation expense-Trucks - Depreciation expense-Equipment - Wages expense
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ACTG381 Sample Midterm Midterm 1 Name:_____________________________________________ Part 1: Multiple Choice (25 questions @ 3 pts ea. Suggested time 50 minutes) Use a scantron to fill in the letter corresponding to the “best” answer. 1. Which of the following properly describes a deferral? a. Cash is received after revenue is earned. b. Cash is received before revenue is earned. c. Cash is paid after expense is incurred. d. Cash is paid in the
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Dealing with Operating Leases in Valuation Aswath Damodaran Stern School of Business 44 West Fourth Street New York‚ NY 10012 adamodar@stern.nyu.edu Abstract Most firm valuation models start with the after-tax operating income as a measure of the operating income on a firm and reduce it by the reinvestment rate to arrive at the free cash flow to the firm. Implicitly‚ we assume that the operating expenses do not include any financing expenses (such as interest expense on debt). While this assumption
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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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