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##### ACCT 301 Week 5, 6 and 7 Homework Problems

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ACCT 301 Week 5;Problem 1;Required: Identify each of the following as either a direct or indirect cost.(20 points);Direct or Indirect?;Material used in production;Salary of manufacturing supervisor;Wages of manufacturing worker;Telephone costs;Rent;Problem 2;Required: GH Company is trying to decide whether to replace a current piece of machinery with a new machine. Using the below data, determine the relevant costs of the old machine and the new machine. Should GH Company purchase the new machine?(30 points);Old MachineNew machine;Original cost 100,000;Accumulated depreciation (50,000);Book value 50,000;Market value (now) 25,000 30,000;Salvage value (in 5 years) 5,000 8,000;Annual depreciation expense 11,000;Operating expenses;Per year 9,000 4,500;Times number of years 4 4;Total operating expenses 36,000 18,000;ACCT 301 Week 6 Homework Problems;Problem 1;Required: In the space below, describe the advantages of budgeting.(10 points);Problem 2;Required: Compute the ROI for each division below to two decimal places. (30 points);Which division has the best performance? (10 points);(40 points total);Division ADivision BDivision C;Operating income 245,000 125,000 350,000;Operating assets 1,200,000 775,000 1,500,000;ACCT 301 Week 7 Homework Problems;Problem 1;Required: In the space below, describe the net present value method of capital budgeting. (10 points);Problem 2;Required: Compute the average annual cash inflows. (20 points);Compute the payback period using the accumulation method. (20 points);(40 points total);20132014201520162017;Incremental revenue 6,000 2,000 4,000 2,000 1,000;Cost of new machine 12,000;Compute the average annual cash inflows

Paper#80072 | Written in 18-Jul-2015

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