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Could you please help me with these problems so I can understand how to them.

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I need assistance with these accounting review questions. Could you please help me with these problems so I can understand how to them.;See attached file for full problem description.;Review Questions no need to show work;1. When a multi-product factory operates at full capacity, decisions;must be made about what products to emphasize. In making such decisions;products should be ranked based on;A) selling price per unit;B) contribution margin per unit;C) contribution margin per unit of the constraining resource;D) unit sales volume;2. Wenig Inc. has some material that originally cost $73,500. The;material has a scrap value of $45,600 as is, but if reworked at a cost;of $6,600, it could be sold for $58,100. What would be the incremental;effect on the company???s overall profit of reworking and selling the;material rather than selling it as is as scrap?;A) -$22,000;B) -$67,600;C) $51,500;D) $5,900;3. The Milham Company has two divisions - East and West. The divisions;have the following revenues and expenses;Management at Milham is pondering the elimination of the West Division;since it has shown an operating loss for the past several years. If the;West Division were eliminated, its traceable fixed costs could be;avoided. Total common corporate costs would be unaffected by this;decision. Given these data, the elimination of the West Division would;result in an overall company net operating income of;A) $100,000;B) $80,000;C) $120,000;D) $50,000;4. The following information relates to next year???s projected;operating results of the Aluminum Division of Wroclaw Corporation;If Aluminum Division is dropped, $1,000,000 of the above fixed costs;would be eliminated. What will be the effect on Wroclaw???s profit next;year if Aluminum Division is dropped instead of being kept?;A) $500,000 decrease;B) $800,000 increase;C) $1,000,000 increase;D) $1,200,000 increase;5. Hal Etoesus currently works as the fry guy at Burger Breath Drive;Thru but is thinking of quitting his job to attend college full time;next semester. Which of the following would be considered an opportunity;cost in this decision?;A) the cost of the textbooks;B) the cost of the cola that Hal will consume during class;C) Hal???s lost wages at Burger Breath;D) both A and B above;6. Which of the following would be relevant in the decision to sell or;throw out obsolete inventory?;A) A Above;B) B Above;C) C Above;D) D Above;7. Buff Corp. is considering replacing an old machine with a new;machine. Which of the following items is relevant to Buff???s decision?;(Ignore income tax considerations.);A) A Above;B) B Above;C) C Above;D) D Above;8. In a make-or-buy decision, relevant costs include;A) unavoidable fixed costs;B) avoidable fixed costs;C) fixed factory overhead costs applied to products;D) fixed selling and administrative expenses;9. In situations where management must decide between accepting or;rejecting a one-time-only special order where there is sufficient idle;capacity to fill the order, which one of the following is NOT relevant;in making the decision?;A) absorption costing unit product costs;B) variable costs;C) incremental costs;D) differential costs;10. Some investment projects require that a company increase its working;capital. Under the net present value method, the investment and eventual;recovery of working capital should be treated as;A) an initial cash outflow.;B) a future cash inflow.;C) both an initial cash outflow and a future cash inflow.;D) irrelevant to the net present value analysis.;11. The net present value (NPV) method of investment project analysis;assumes that the project???s cash flows are reinvested at the;A) internal rate of return.;B) discount rate used in the NPV calculation.;C) firm???s simple rate of return.;D) firm???s average ROI.;12. If taxes are ignored, all of the following items are included in a;discounted cash flow analysis except;A) future operating cash savings.;B) depreciation expense.;C) future salvage value.;D) investment in working capital.;13. In capital budgeting computations, discounted cash flow methods;A) automatically provide for recovery of initial investment.;B) can???t be used unless cash flows are uniform from year to year.;C) assume that all cash flows occur at the beginning of a period.;D) responses a, b, and c are all correct.;14. The investment required for the project profitability index should;A) be reduced by the amount of any salvage recovered from the sale of;old equipment.;B) be reduced by the amount of any salvage recovered from the sale of;the new equipment at the end of its useful life.;C) be reduced by the amount of any salvage recovered from the sale of;both the old and new equipment.;D) none of the above is correct.;15. The following data on a proposed investment project have been;provided;The net present value of the project would be;A) $3,730;B) $0;C) $32,450;D) $88,370;16. Fossa Road Paving Company is considering an investment in a;curb-forming machine. The machine will cost $240,000, will last 10;years, and will have a $40,000 salvage value at the end of 10 years. The;machine is expected to generate net cash inflows of $60,000 per year in;each of the 10 years. Fossa's discount rate is 18%. What is the net;present value of this machine?;A) $5,840;B) $37,280;C) $(48,780);D) $69,640;17. A project requires an initial investment of $70,000 and has a;project profitability index of 0.932. The present value of the future;cash inflows from this investment is;A) $70,000;B) $36,231;C) $135,240;D) Cannot be determined from the data provided.;18. Information on four investment proposals is given below;Rank the proposals in terms of preference according to the project;profitability index;A) 1, 4, 3, 2;B) 4, 1, 3, 2;C) 3, 4, 1, 2;D) 2, 1, 4, 3;19. Which of the following would be considered a "source" of cash for;purposes of constructing a statement of cash flows?;A) a decrease in accounts payable.;B) dividends paid to the company???s own shareholders.;C) an increase in accrued liabilities.;D) an increase in prepaid expenses.;20. Which of the following would be considered a "source" of cash for;purposes of constructing a statement of cash flows?;A) a decrease in accounts receivable.;B) an increase in prepaid expenses.;C) an increase in accrued liabilities.;D) an increase in plant and equipment.;21. Martin Corporation uses the indirect method to prepare its statement;of cash flows. If Martin purchases additional equipment, which results;in additional depreciation charges, what net effect will the purchase of;this additional equipment have on the net cash provided (used) in the;following sections of Martin???s statement of cash flows?;A) A above;B) B above;C) C above;D) D above;E) E above;22. Under the indirect method of determining net cash provided by;operating activities on the statement of cash flows, which of the;following would be recorded as a deduction from net income?;A) A decrease in accounts receivable?;B) An increase in accounts payable.;C) A decrease in accounts payable.;D) An increase in deferred revenue.;23. An increase in accounts receivable of $1,000 over the course of a;year would be shown on the company???s statement of cash flows prepared;under the indirect method as;A) an addition to net income of $1,000 in order to arrive at net cash;provided by operating activities.;B) a deduction from net income of $1,000 in order to arrive at net cash;provided by operating activities.;C) an addition of $1,000 under financing activities.;D) a deduction of $1,000 under financing activities.;24. Hauta Corporation prepares its statement of cash flows using the;indirect method. Which of the following would be deducted from net;income in the operating activities section of the statement?;A) A above;B) B above;C) C above;D) D above;25. Majorn Auto Parts Store had net income of $81,000 for the year just;ended. Majorn collected the following additional information to prepare;its statement of cash flows for the year;Majorn uses the indirect method to prepare its statement of cash flows.;What is Majorn???s net cash provided (used) by operating activities?;A) $41,000;B) $(53,000);C) $185,000;D) $279,000

 

Paper#27310 | Written in 18-Jul-2015

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