Accounting Help for College and University Students

Machine replacement decision Investment Decision (using NPV, IRR and the payback method)

1) Terminal Cash Flow – Replacement decision Russell Industries is considering replacing a fully depreciated machine having a remaining useful life of 10 years, with a newer more sophisticated machine. The new machine will cost $200,000 and will require $30,000 in installation costs. It will be depreciated under MACRS u ...continues

Cash Flow to Total Liabilities Ratio and the Return to Net Operating Ratio

THE PROBLEM: Calculate the Cash Flow to Total Liabilities Ratio and the Return to Net Operating Ratio for Johnson and Johnson (2002) 1) Here are the sites with the financial statements and data: http://www.jnj.com/2002AnnualReport/financials/consolidated/index.htm http://www.jnj.com/2002AnnualReport/financial ...continues

Accounting Analysis

Calculating NOI, sales figures, cost and return.

Calculating rates of return, future values and NPV.

1) Calculating Interest Rates and Future Values. A 1949 Vincent Black Shadow Series B vintage motorcycle (of which only 80 were made) sold for about $45,000 in 1996. If you were fortunate enough to have purchased one new for $630 in 1949, what return did you earn on your investment? If the value of a $20,000 1998 Bimota Superm ...continues

Pappy's Potato: Calculating Project Cash Flows and NPV for your portfolio

Calculating Project Cash Flows and NPV - See attached file. If your portfolio is invested 30 percent each in A and B and 40 percent in C, what is the portfolio's expected return? The variance? The standard deviation? b. If the expected T-bill rate is 4.25 percent, what is the expected risk premium on the portfolio? c. I ...continues

Accounting

Prepare financial statements

Analysis of financing options in purchasing a car

You are considering the purchase of a new car. The choices are: A. Pay $27,500 cash, or B. Pay $650 a month for 4 years, with an up-front service fee of $500, or C. Pay $750 a month for 3 years plus a balloon payment of $5,000. What are the implied interest rates in financing arrangements B and C?

Stickey Wicket, Inc.: Prepare the balance sheet as it would appear at December 31, 2004. Prepare a statement of cash flows for 2004.

Stickey Wicket, Inc. Balance Sheet December 31, 2003 Cash $20,000 Accounts Receivable $21,200 Investments (trading) $32,000 Plant Assets (net) $81,000 Land $40,000 Total $194,200 Accounts Payable $30,000 Long-Term Notes Payable $41,000 Capital Stock $100,000 Retained Earnings $23,2 ...continues

Accounting: Calculating cost: 3 questions on costing: 1) overhead allocation using Activity Based Costing 2) Calculation of incremental cost for a special order for Happy Apparel Company 3) calculation of total overhead costs using ABC

Calculating cost 1. During class we discussed the need to be able to calculate the “cost” of a product. Please indicate why the “cost” of a product is important information for a business manager. In addition, please give an example of overhead allocation using a single cost pool and an example (using the same numbers) of ove ...continues

Inventory Valuation and Accounts Receivables

4. The Howard Swatch Company had 300 swatches in its July 1 inventory. The company uses periodic inventory system and made the following purchases of swatches during July and August. July 8 40 swatches for $20 each July 27 100 swatches for $21 each Aug 18 50 swatches for $22 each Aug 24 60 swatches for $23 ...continues