Accounting question and answers for November 11, 2023
- Q Rapid Pesticides is a manufacturer of pesticides located at the bank of Norton River. The entity has developed the following analysis of its environmental costs and revenues for the financial...
- Q Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $182,465 in overhead. The company has identified...
- Q Upsilon Ltd Date: 30 June 2024Details:Raw materials inventory (cotton):Cost: £34,000Replacement cost: £32,000Finished goods inventory:ProductThetaIotaDirect costs£70,000£60,000Proportion of fixed overhead£18,000£16,000Proportion of selling costs£5,500£5,000Net realizable value£110,000£90,000Machinery: Acquired on 1 July 2017 for £340,000, depreciated over...
- Q Alpha Ltd Date: 31 May 2024Details:Raw material inventory (synthetics):Cost: £35,000Replacement cost: £33,000Finished goods inventory:ProductGammaDeltaDirect costs£70,000£60,000Proportion of fixed overhead£20,000£18,000Proportion of selling costs£5,500£5,000Net realizable value£110,000£90,000Vehicles: Acquired on 1 June 2018 for £320,000, depreciated over...
- Q NASHORA Berhad is considering a project which costs RM2 million and interested in measuring its overall cost of capital. Tax rate charged 40%. One of component's cost of capitals is...
- Q While auditing XYZ Ltd your audit senior found that senior accounts payable clerk, Jillian Perkins, had been creating fake creditor's invoices from non-operating companies that she owned, for goods and...
- Q Poncho, a public limited company, has entered into several share related transactions during the period and wishes to obtain advice on how to account for them.(i) ...
- Q Record the following entries in a worksheet format.You and your friend start a business which sells face masks to small medical practices across Western Australia. You lease a small warehouse,...
- Q Joanne and Tony have been married for 15 years and to celebrate they decided to take a weekend break with their best friends, Kerry and Peter. They went to Newcastle....
- Q Outdoor Equipment (OE) sells camping equipment. Journalize the following entries for the current year. OE accepts Visa Card purchase (1.5% service fee) in addition to A/R and Cash. We purchase...
- Q Budget Mowing manufactures a low cost ride-on lawnmower for the Australian market, the Quickmow. Current annual sales are 600 mowers and they sell for $1,000 each. Staff salaries are $101,000...
- Q Valerina is a restaurant owner in Burwood, VIC. The business prepaid the insurance premium a year in advance. At the time of payment, she thought of recording the prepayment of...
- Q The following items were presented for the purpose of determining comprehensive income. •Profit for the year- P2,000 •Increase in revaluation surplus- P1,000 •Increase in unrealized loss at Fair...
- Q Ranger Corp. is exchanging a piece of land not currently being used for some trucks needed to meet increasing delivery demands. The land has a fair value of $250,000 and...
- Q Faith, Inc. has a fiscal year ending April 30. On May 1, 2018, Faith borrowed P10,000,000 at15% to finance construction of its own building. Repayments of the loan are to...
- Q When using the indirect method of completing the cash flows from operating activities section, what is the proper treatment for a decrease in the inventory account?A. Deduct the increase from...
- Q On March 1, 2022, Burdick Co. issued bonds with a face value of $600,000. The bonds carry a stated interest rate of 8%; interest is payable each June 1st and...
- Q The partnership agreement of Q and R provides that interest at 10% per annum is to be credited to each partner based on their average capital balances. The summary of...
- Q Doja Lipa issues a P1,000 corporate bond with an annual interest rate of P6%, quarterly interest payments for 3 years. The bond's yield to maturity is 12%.a. What is the...
- Q Examination of the records of Dream High Company for the year ended December 31, 2020 revealed the following: •During 2020, Dream High received P40,000 as cash advance from a customer...
- Q Alberto is a company that manufactures and sells mobile phones and mobile phone contracts. It prepares its financial statements under International Financial Reporting Standards and has a year end of...
- Q You are considering two projects, Project C and Project D. Project C requires an initial investment of $8,000,000 and is expected to generate cash inflows of $2,000,000 per year for...
- Q Chi Ltd Date: 30 September 2023Details:Raw materials inventory (paper):Cost: £29,000Replacement cost: £27,000Finished goods inventory:ProductAlphaBetaDirect costs£60,000£50,000Proportion of fixed overhead£14,000£12,000Proportion of selling costs£4,000£3,500Net realizable value£95,000£75,000Machinery: Acquired on 1 October 2017 for £280,000, depreciated over...
- Q Beta Ltd Date: 31 March 2024Details:Raw materials inventory (rubber):Cost: £28,000Replacement cost: £26,000Finished goods inventory:ProductAlphaBetaDirect costs£70,000£60,000Proportion of fixed overhead£18,000£16,000Proportion of selling costs£4,500£4,000Net realizable value£110,000£90,000Machinery: Acquired on 1 April 2018 for £320,000, depreciated over...
- Q YearCash Flow ($)0-3,000,00011,000,00021,200,00031,500,00041,000,000Requirements:Calculate the NPV at a 10% discount rate.Find the IRR.What is the project’s payback period?Assess if the project should be undertaken if the required rate of return is...
- Q You have two mutually exclusive projects with the following cash flows:Project A:Initial Investment: -$6,000,000Year 1: $2,000,000Year 2: $2,500,000Year 3: $3,000,000Year 4: $3,500,000Project B:Initial Investment: -$4,000,000Year 1: $1,000,000Year 2: $1,500,000Year 3:...
- Q You are evaluating two projects with the following cash flows:YearProject MProject N0-$1,000,000-$1,500,0001$300,000$400,0002$400,000$500,0003$500,000$600,0004$600,000$700,000Requirements:Calculate the NPV for each project at a discount rate of 11%.Determine the payback period for each project.Identify the...
- Q Eta Ltd Date: 31 March 2024Details:Raw materials inventory (steel):Cost: £32,000Replacement cost: £30,000Finished goods inventory:ProductThetaLambdaDirect costs£65,000£55,000Proportion of fixed overhead£18,000£15,000Proportion of selling costs£4,000£3,500Net realizable value£100,000£85,000Office machinery: Acquired on 1 April 2016 for £280,000, depreciated...
- Q JKL Industries is evaluating two projects. Both projects require an initial investment of $200,000. The expected cash flows are as follows:YearProject R (USD)Project S (USD)0(200,000)(200,000)160,00070,000270,00080,000380,00090,000490,000100,0005100,000110,000Requirements: a. Calculate the payback period...
- Q Cash Flows:Initial Outlay: $1,500,000Year 1: $500,000Year 2: $600,000Year 3: $700,000Year 4: $800,000Requirements:Compute the IRR.Calculate the NPV at a 12% cost of equity.Find the profitability index.Determine the payback period.
- Q Here are the financial figures for White Sands Corp. as of September 30, 2024. Calculate the company's net income.DescriptionDebit (?)Credit (?)Capital Account350,000Drawings40,000Sales550,000Purchases250,000Salaries70,000Utilities30,000Rent45,000Miscellaneous Expenses10,000Profit and Loss12,000Requirements:Compute total debits and credits.Determine net...
- Q Sigma Corporation Date: 31 October 2023Details:Raw materials inventory (rubber):Cost: £36,000Replacement cost: £34,000Finished goods inventory:ProductGammaDeltaDirect costs£65,000£55,000Proportion of fixed overhead£18,000£15,000Proportion of selling costs£4,000£3,500Net realizable value£100,000£85,000Office machinery: Acquired on 1 November 2018 for £260,000, depreciated...
- Q VWX Enterprises is evaluating a potential project with an initial cost of $600,000. The project is expected to produce the following end-of-year cash flows:Year 1: $160,000Year 2: $150,000Year 3: $140,000Year...
- Q JKL Ltd is planning to undertake a project requiring an investment of $200,000. The project is expected to generate profits before depreciation and tax of:YearProfit (Rs.)160,000270,000380,000490,000550,000Depreciation is to be provided...
- Q Phi Ltd Date: 31 August 2023Details:Raw material inventory (synthetics):Cost: £50,000Replacement cost: £48,000Finished goods inventory:ProductOmicronPiDirect costs£80,000£65,000Proportion of fixed overhead£20,000£18,000Proportion of selling costs£6,000£5,000Net realizable value£125,000£100,000Furniture: Acquired on 1 September 2016 for £300,000, depreciated over...
- Q Omega Inc. Date: 31 October 2023Details:Raw materials inventory (rubber):Cost: £28,000Replacement cost: £26,000Finished goods inventory:ProductGammaDeltaDirect costs£65,000£55,000Proportion of fixed overhead£18,000£16,000Proportion of selling costs£5,500£5,000Net realizable value£105,000£85,000Office machinery: Acquired on 1 November 2018 for £300,000, depreciated...
- Q YearCash Flow to Equity ($)0-4,000,00011,500,00021,500,00031,500,00041,500,000Requirements:Determine the IRR.Calculate the NPV with a 10% discount rate.Should the project be accepted if the cost of equity is 10%?Compute the payback period.
- Q Delta Ltd Date: 30 September 2023Details:Raw materials inventory (glass):Cost: £37,000Replacement cost: £35,000Finished goods inventory:ProductLambdaMuDirect costs£65,000£55,000Proportion of fixed overhead£18,000£15,000Proportion of selling costs£4,000£3,500Net realizable value£100,000£85,000Office equipment: Acquired on 1 October 2018 for £280,000, depreciated...
- Q A project requires an initial investment of $600,000 and is expected to generate the following cash flows. Calculate the payback period, NPV at an 8% discount rate, and IRR.YearCash Flow...
- Q Iota Corporation Date: 31 January 2024Details:Raw material inventory (rubber):Cost: £37,000Replacement cost: £35,000Finished goods inventory:ProductGammaDeltaDirect costs£60,000£50,000Proportion of fixed overhead£16,000£14,000Proportion of selling costs£4,000£3,500Net realizable value£95,000£75,000Vehicles: Acquired on 1 February 2018 for £350,000, depreciated over...
- Q ABC Corp. has the following cash flows for a new project. Calculate the payback period, NPV at a 10% discount rate, and IRR.YearCash Flow (USD)0(700,000)1170,0002180,0003190,0004200,0005210,000
- Q GHI Enterprises is contemplating a project with an initial outlay of $400,000. The project will generate annual revenues of $130,000 for 5 years, with annual operating expenses (excluding depreciation) of...
- Q XYZ Corp is evaluating a new project. The initial investment required is $300,000. The project is expected to generate the following annual cash flows:Year 1: $90,000Year 2: $120,000Year 3: $110,000Year...
- Q Nu Corporation Date: 31 August 2023Details:Raw material inventory (glass):Cost: £39,000Replacement cost: £37,000Finished goods inventory:ProductRhoSigmaDirect costs£75,000£60,000Proportion of fixed overhead£18,000£15,000Proportion of selling costs£4,500£4,000Net realizable value£115,000£90,000Furniture: Acquired on 1 September 2016 for £180,000, depreciated over...
- Q PQR Inc. is evaluating two projects with the following cash flows. Determine the payback period, NPV at a 5% discount rate, and IRR for both projects.YearProject 1 (USD)Project 2 (USD)0(800,000)(800,000)1200,000250,0002250,000300,0003300,000350,0004350,000400,0005400,000450,000
- Q Upsilon Ltd Date: 30 April 2024Details:Raw materials inventory (synthetics):Cost: £45,000Replacement cost: £43,000Finished goods inventory:ProductOmicronPiDirect costs£70,000£60,000Proportion of fixed overhead£18,000£16,000Proportion of selling costs£5,000£4,500Net realizable value£110,000£90,000Machinery: Acquired on 1 May 2017 for £330,000, depreciated over...
- Q Mu Ltd Date: 31 July 2023Details:Raw materials inventory (ceramics):Cost: £35,000Replacement cost: £33,000Finished goods inventory:ProductOmicronPiDirect costs£60,000£50,000Proportion of fixed overhead£14,000£12,000Proportion of selling costs£3,500£3,000Net realizable value£95,000£75,000Machinery: Acquired on 1 August 2019 for £360,000, depreciated over...
- Q Project Cash Flows:Initial investment: $3,500,000Year 1: $1,000,000Year 2: $1,500,000Year 3: $2,500,000Year 4: $1,000,000Requirements:Plot the NPV profile for the project.Calculate the IRR.If the required rate of return is 10%, should the...
- Q List of balances for Silver Lining Inc. as of February 28, 2024:Capital Account: ?275,000 (Credit)Drawings: ?25,000 (Debit)Sales: ?525,000 (Credit)Purchases: ?225,000 (Debit)Wages: ?55,000 (Debit)Utilities: ?12,000 (Debit)Rent: ?28,000 (Debit)Miscellaneous Expenses: ?8,000 (Debit)Profit...
- Q Evaluate the following projects based on their cash flows:YearProject PProject QProject RInitial Outlay-$40,000-$35,000-$45,000Year 1$12,000$10,000$14,000Year 2$12,000$10,000$14,000Year 3$12,000$10,000$14,000Year 4$12,000$10,000$14,000Required:Compute the payback period for each project.Determine the NPV for each project at a...
- Q On March 31, 2024, the financial records of Yellow Stone Ltd. showed the following: The capital account had a credit balance of ?500,000, drawings amounted to ?60,000, sales were recorded...
- Q You have two projects to evaluate with the following cash flows:Project Q:Year 0: -$8,000,000Year 1: $1,000,000Year 2: $2,000,000Year 3: $2,500,000Year 4: $3,000,000Project R:Year 0: -$5,000,000Year 1: $800,000Year 2: $1,200,000Year 3:...
- Q ABC Ltd. is evaluating two projects with the following cash flows. Compute the payback period and NPV for both projects assuming a discount rate of 9%.YearProject X (USD)Project Y (USD)0(600,000)(600,000)1150,000200,0002200,000250,0003250,000300,0004300,000350,000
- Q Phi Inc. Date: 31 March 2024Details:Raw material inventory (wood):Cost: £30,000Replacement cost: £28,000Finished goods inventory:ProductGammaDeltaDirect costs£65,000£55,000Proportion of fixed overhead£18,000£16,000Proportion of selling costs£5,500£5,000Net realizable value£105,000£85,000Equipment: Acquired on 1 April 2018 for £350,000, depreciated over...
- Q LMN Ltd. is considering two projects, A and B. The cash flows are as follows:YearProject A (USD)Project B (USD)0(500,000)(500,000)1100,000150,0002150,000200,0003200,000250,0004250,000300,0005300,000350,000Requirements: a. Compute the payback period for both projects. b. Calculate the...
- Q YearCash Flow to Equity ($)0-1,000,0001600,0002400,0003200,000Requirements:Calculate the NPV at a 15% cost of equity.Find the IRR.Determine the modified internal rate of return (MIRR) assuming a finance rate of 15% and a...
- Q A company is considering the following cash flows for a new project. Calculate the payback period, NPV at a 9% discount rate, and IRR.YearCash Flow (USD)0(600,000)1150,0002160,0003170,0004180,0005190,000
- Q Psi Ltd Date: 31 December 2023Details:Raw material inventory (synthetics):Cost: £35,000Replacement cost: £33,000Finished goods inventory:ProductOmicronPiDirect costs£65,000£55,000Proportion of fixed overhead£18,000£16,000Proportion of selling costs£5,000£4,500Net realizable value£100,000£80,000Vehicles: Acquired on 1 January 2018 for £320,000, depreciated over...
- Q Rho Ltd Date: 31 January 2024Details:Raw material inventory (fiber):Cost: £45,000Replacement cost: £43,000Finished goods inventory:ProductThetaLambdaDirect costs£80,000£65,000Proportion of fixed overhead£20,000£18,000Proportion of selling costs£5,000£4,500Net realizable value£125,000£100,000Equipment: Acquired on 1 February 2017 for £350,000, depreciated over...
- Q Initial Investment: $6,000,000Year 1: $2,000,000Year 2: $2,000,000Year 3: $1,000,000Year 4: $2,000,000Requirements:Plot the NPV profile for this investment.Calculate the IRR.Calculate the NPV at a discount rate of 9%.Should the project be...
- Q Beta Corporation Date: 30 June 2023Details:Raw materials inventory (fiber):Cost: £30,000Replacement cost: £28,000Finished goods inventory:ProductLambdaMuDirect costs£65,000£55,000Proportion of fixed overhead£18,000£16,000Proportion of selling costs£5,000£4,500Net realizable value£105,000£85,000Office machinery: Acquired on 1 July 2017 for £330,000, depreciated...
- Q Gamma Ltd Date: 31 August 2023Details:Raw material inventory (plastic):Cost: £32,000Replacement cost: £30,000Finished goods inventory:ProductThetaIotaDirect costs£70,000£60,000Proportion of fixed overhead£18,000£16,000Proportion of selling costs£5,500£5,000Net realizable value£110,000£90,000Furniture: Acquired on 1 September 2016 for £310,000, depreciated over...
- Q Given the following cash flows for two projects:Project E:Year 0: -$7,000,000Year 1: $2,000,000Year 2: $3,000,000Year 3: $3,500,000Year 4: $4,000,000Project F:Year 0: -$5,000,000Year 1: $1,000,000Year 2: $2,000,000Year 3: $2,500,000Year 4: $3,500,000Requirements:Calculate...
- Q Omicron Inc. Date: 30 April 2024Details:Raw material inventory (metal):Cost: £47,000Replacement cost: £45,000Finished goods inventory:ProductOmicronPiDirect costs£100,000£80,000Proportion of fixed overhead£24,000£20,000Proportion of selling costs£6,000£5,000Net realizable value£140,000£110,000Vehicles: Acquired on 1 May 2019 for £340,000, depreciated over...
- Q Lambda Inc. Date: 30 June 2024Details:Raw material inventory (textiles):Cost: £42,000Replacement cost: £40,000Finished goods inventory:ProductThetaIotaDirect costs£70,000£55,000Proportion of fixed overhead£20,000£18,000Proportion of selling costs£5,000£4,500Net realizable value£110,000£90,000Equipment: Acquired on 1 July 2018 for £320,000, depreciated over...
- Q STU Ltd is considering a project that requires an initial investment of Rs.3,00,000. The project will generate annual cash inflows of Rs.90,000 for 6 years. The project will be depreciated...
- Q Alpha Ltd Date: 31 May 2024Details:Raw material inventory (fiber):Cost: £33,000Replacement cost: £31,000Finished goods inventory:ProductLambdaMuDirect costs£65,000£55,000Proportion of fixed overhead£18,000£16,000Proportion of selling costs£5,000£4,500Net realizable value£100,000£80,000Furniture: Acquired on 1 June 2017 for £350,000, depreciated over...
- Q As of December 31, 2023, Green Field Co. has the following balances. Calculate the net income for the company.Capital Account: ?400,000 (Credit)Drawings: ?50,000 (Debit)Sales: ?600,000 (Credit)Purchases: ?300,000 (Debit)Salaries: ?80,000 (Debit)Utilities:...
- Q The following are the balances from the books of Blue Sky Enterprises as of June 30, 2024. Calculate the company's net income.DescriptionDebit (?)Credit (?)Capital Account250,000Drawings30,000Sales450,000Purchases220,000Wages60,000Utilities15,000Rent35,000Miscellaneous Expenses10,000Profit and Loss15,000Requirements:Calculate the total...
- Q Pi Ltd Date: 31 December 2023Details:Raw materials inventory (plastic):Cost: £38,000Replacement cost: £36,000Finished goods inventory:ProductAlphaBetaDirect costs£70,000£55,000Proportion of fixed overhead£18,000£15,000Proportion of selling costs£4,000£3,500Net realizable value£110,000£85,000Machinery: Acquired on 1 January 2017 for £320,000, depreciated over...
- Q Eta Corporation Date: 31 January 2024Details:Raw material inventory (fiber):Cost: £32,000Replacement cost: £30,000Finished goods inventory:ProductOmicronPiDirect costs£70,000£55,000Proportion of fixed overhead£18,000£15,000Proportion of selling costs£5,000£4,500Net realizable value£110,000£85,000Vehicles: Acquired on 1 February 2018 for £320,000, depreciated over...
- Q A company has the following cash flows for a new project. Calculate the payback period and the NPV assuming a 10% discount rate.YearCash Flow (USD)0(300,000)1100,0002120,0003140,0004160,0005180,000
- Q For the fiscal year ending May 31, 2024, the following details are provided for Ocean Blue Ltd.:ItemAmount (?)Sales550,000Cost of Goods Sold330,000Administrative Expenses38,000Selling Expenses32,000Interest Expense16,000Income Tax19,000Requirements:Calculate the gross profit.Determine the operating...
- Q Initial Investment: $5,500,000Year 1: $1,200,000Year 2: $2,300,000Year 3: $3,000,000Year 4: $1,500,000Requirements:Compute the IRR.Calculate the NPV using an 8% discount rate.Determine the payback period.Evaluate whether the project should be accepted if...
- Q GHI Ltd. is evaluating a project that has the following cash flows. Compute the NPV at a 7% discount rate.YearCash Flow (USD)0(700,000)1200,0002300,0003400,0004500,000
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