MJ

Dangerfield Industrial Systems Company (DISC) is trying to decide between two different conveyor belt systems. System A costs $430,000, has a four-year life, and requires $110,000 in pretax annual operating costs. System B costs $570,000, has a six-year life, and requires $98,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. If the tax rate is 34 percent and the discount rate is 11 percent, the NPV for project A is $_____ and the NPV for project B is _______ .

A local business owner is considering adding another employee to his staff in an effort to increase the number of hours the store is open per day.

a. If the employee will cost the owner $4,000 per month and the store takes in $50/hour in revenue with variable costs of $15/hour, how many hours must the new employee work for the owner to break even?

b. The employee again costs $4000 and has agreed to work 120 hours. If variable costs remain at $15/hour and revenue is uncertain with a 40% chance of being $40/hour, 35% chance of being $20/hour, and 25% chance of being $35/hour should the owner hire the employee?

A swim club is designing a new pool to replace its old pool. The new pool would need to last for 10 years since the club is planning on relocating after 10 years. A concrete shell would cost $100,000 and last for all 10 years. Another option is to install a vinyl liner that would cost only $75,000 to install. However, the vinyl is not guaranteed to last for all 10 years, and has a 33% chance of breaking down. Repair of the vinyl would cost $40,000 and would extend the life of the vinyl liner to the 10 year mark. If both options are acceptable to the swim club, which one minimizes their cost?

A company producing apps for a social networking site is deciding which path to pursue. The first is to create an app that has universal appeal but faces a crowded market. This app, A, would have sales of 100,000 copies at $1 each under ideal conditions, but under tough conditions would have sales of only 60,000 copies at $.80 each. The other app, B, would have sales of 500,000 units at $.50 each under ideal conditions but sales would be reduced to 10,000 units at $.50 each under tough conditions. If ideal and tough conditions occur with the same frequency, which app should the company produce? Note- both apps cost the same to develop.

Your Open Question: Accounting Problem help?

Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2009 for $10,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2010, new technology was introduced that would accelerate the obsolescence of Roland's equipment. Roland's controller estimates that expected future net cash flows on the equipment will be $6,300,000 and that the fair value of the equipment is $5,600,000. Roland intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Roland uses straight-line depreciation.

Instructions

Prepare the journal entry (if any) to record the impairment at December 31, 2010.

Prepare any journal entries for the equipment at December 31, 2011. The fair value of the equipment at December 31, 2011, is estimated to be $5,900,000.

Repeat the requirements for (a) and (b), assuming that Roland intends to dispose of the equipment and that it has not been disposed of as of December 31, 2011.

Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2009 for $10,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2010, new technology was introduced that would accelerate the obsolescence of Roland's equipment. Roland's controller estimates that expected future net cash flows on the equipment will be $6,300,000 and that the fair value of the equipment is $5,600,000. Roland intends to continue using the equipment, but it is estimated that the remaining useful life is 4 years. Roland uses straight-line depreciation.

Instructions

Prepare the journal entry (if any) to record the impairment at December 31, 2010.

Prepare any journal entries for the equipment at December 31, 2011. The fair value of the equipment at December 31, 2011, is estimated to be $5,900,000.

Repeat the requirements for (a) and (b), assuming that Roland intends to dispose of the equipment and that it has not been disposed of as of December 31, 2011.

____1. Why are inventories stated at lower-of-cost-or-market?

a. To report a loss when there is a decrease in the future utility.

b. To be conservative.

c. To report a loss when there is a decrease in the future utility below the original cost.

d. To permit future profits to be recognized.

____2. What is the effect of net markups on the cost-retail ratio when using the conventional retail method?

a. Increases the cost-retail ratio.

b. No effect on the cost-retail ratio.

c. Depends on the amount of the net markdowns.

d. Decreases the cost-retail ratio.

____3. What is the effect of freight-in on the cost-retail ratio when using the conventional retail method?

a. Increases the cost-retail ratio.

b. No effect on the cost-retail ratio.

c. Depends on the amount of the net markups.

d. Decreases the cost-retail ratio.

____7. On February 1, 2012, Joy Corporation purchased a parcel of land as a factory site for $250,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2012. Costs incurred during this period are listed below:

Demolition of old building $ 20,000

Architect's fees 35,000

Legal fees for title investigation and purchase contract 5,000

Construction costs 1,290,000

(Salvaged materials resulting from demolition were sold for $10,000.)

Joy should record the cost of the land and new building, respectively, as

a. $275,000 and $1,315,000.

b. $260,000 and $1,330,000.

c. $260,000 and $1,325,000.

d. $265,000 and $1,325,000.

____8. Prairie Dawn Company purchased equipment for $12,000. Sales tax on the purchase was $800. Other costs incurred were freight charges of $200, repairs of $350 for damage during installation, and installation costs of $225. What is the cost of the equipment?

a. $12,000

b. $12,800

c. $13,225

d. $13,575

Exercise 3.3 Inductive Argument Analysis and Assessment – Instructions: Use the first two steps from the three steps for Spotting Fallacies in Inductive Arguments (page 89) to assess the inductive arguments in this section: Give a full analysis of the argument, (circle or put in bold italics the logical indicators, place the conclusion [in brackets], underline all of the premises, and write out the question and two foundational assumptions). Then, use the Three Questions to Ask for Assessing Inductive Arguments to identify strengths and weaknesses in the premises in the space provided. Consider all three of the questions, and identify the strengths and weaknesses of the premises. A complete assessment should be about 4-5 sentences long. (24 points)

1. Although video game sales have increased steadily over the past 3 years, we can expect a reversal of this trend in the very near future since the number of people from 13 to 16 years of age is expected to decline steadily over the next 10 years, and historically, at least three quarters of video games sold have been purchased by people in this age group. Hence, our company should begin to lessen our investment in new games and gaming-related hardware.

Question:

Assuming:

Assuming:

Assessment:

2. An action is right if it would be reasonably expected to increase the well-being of the people affected by it. An action is wrong if and only if it would be reasonably expected to reduce the well-being of the people affected by it. Thus, actions that would be reasonably expected to leave the well-being of the people affected by them unchanged are also right, and, as a result, such actions should not be legally or morally prohibited.

Question:

Assuming:

Assuming:

Assessment:

True or False: Adequate amounts of dietary vitamin D are associated with lower risk for some diseases.

True or False: Many micronutrients have to be chemically altered before they are active in the body.

Functions of water in the body include all of the following except:

cooling via perspiration

being part of chemical reactions

protecting and lubricating tissues

controlling blood glucose

Body fluid input comes from all of the following except:

foods

metabolism

skin

beverages

I cut my finger it seems a little deep on my index finger with a knife last night, the bleeding stopped after a few minutes straght in the water? I put a band aid on and checked a couple hours later and it seems the cut closed up and its jus black from dry blood, so I put neosprin on it before sleeping and put a new band aid on. I can move my finger normally but my main concern is, its numb near the area of the cut, like the fingertip is still numb? I am assuming this has happened because many small veins got cut from the knife causing so much blood to come out and now its numb becuase of not enough blood? Can someone please suggest on what to do and why is it still NUMB? When will the numbness go away and should I get it checked out???

I cut my finger it seems a little deep on my index finger with a knife last night, the bleeding stopped after a few minutes straght in the water? I put a band aid on and checked a couple hours later and it seems the cut closed up and its jus black from dry blood, so I put neosprin on it before sleeping and put a new band aid on. I can move my finger normally but my main concern is, its numb near the area of the cut, like the fingertip is still numb? I am assuming this has happened because many small veins got cut from the knife causing so much blood to come out and now its numb becuase of not enough blood? Can someone please suggest on what to do and why is it still NUMB? When will the numbness go away and should I get it checked out???

The longevity discrepancy between blacks and whites is a sign of:

1. social inequality

2. lifestyle differences

3. genetics

4. health disparities

Hypertension is directly related to stress, which can be attributed to being poor. However, poor African Americans in the United States have similar rates of hypertension as middle- and upper-class African Americans. What is one theory to explain this?

1. all African Americans may still experience discrimination

2. a genetic predisposition for hypertension

3. bad lifestyle choices

4. lack of adequate health care when they were young

A group of conservationists encourage their community to save water by using low flushing toilets or faucets that release more pressure but less water. Which social movement would this represent?

1. alterative

2. revolutionary

3. reformative

4. redemptive

An example of a(n) ____________ social movement occurred during the civil rights movement, when African Americans refused to ride the bus.

1. reformative

2. redemptive

3. alterative

4. revolutionary

In ____________ societies, tradition was important because the customs that were passed down through the generations helped guide everyday life.

1. postmodern

2. modern

3. premodern

4. early modern

Which sociologist suggested modernity was a time when each person was a unique combination of overlapping group affiliations?

1. Pierre-Charles L’Enfant

2. Georg Simmel

3. Max Weber

4. Carl Marx

The black ghetto was manufactured by whites through a set of deliberate, conscious practices. Which of the following is NOT one of the practices mentioned in your book?

1. property owners signed secret agreements promising to exclude blacks

2. redlining

3. high homeowner association dues

4. if blacks moved in, whites would move out

The game of Monopoly follows the rules of what standard of equality?

1. equality under God

2. equality of opportunity

3. equality of condition

4. ontological equality

Sometimes individuals seek to assert or increase their status, not just through occupation, but also through:

1. All of the above.

2. living in gated communities

3. driving fancy cars

4. wearing stylish clothes

Sociologists often describe an individual’s position in a stratified social order that attempts to classify groups, individuals, families, or households in terms of indicators such as occupation, income, wealth, and education. Sociologists call this:

1. socioeconomic status

2. economic levels

3. social levels

4. stratum

Which nation has one of the highest poverty rates in the advanced world?

1. France

2. Canada

3. Great Britain

4. The United States

When it comes to health care, Western societies are:

1. uninvolved

2. proactive

3. passive

4. reactive

Under the sex/gender system, men universally perform the kinds of tasks:

1. that require more intelligence

2. that are accorded higher value than those done by women

3. that require more strength.

4. that require more education

Many people believe sex to be an either-or situation (either male or female), but sociologists believe natural sex is:

1. strictly biological

2. more of an ideal than an absolute

3. a myth

4. distinctly different

Although a binary sex system imposes order in the world and helps us make sense of a complicated mass of populations, it also:

1. helps us understand reproduction

2. limits our ability to accept difference

3. explains social implications

4. helps us understand hormonal birth defects

By looking at anthropological findings in tribal societies, sociologists can see fluidity in gender, which helps us see that the boundaries within our own system of gender:

1. are psychologically established

2. are emotionally guided

3. are biologically fixed

4. may not be stable

The General Social Survey asked respondents why, on average, African Americans have worse jobs, income, and housing than white people. Most of the respondents believed that blacks:

1. don’t have the motivation to pull themselves out of poverty

2. prefer to live that way

3. have been socially repressed

4. have less inborn abilities to learn

The differences between race and ethnicity underscore the privileged positions of ____________ in America, who have the freedom to pick and choose their identities and freely show their ethnic backgrounds.

1. blacks

2. whites

3. Asians

4. Hispanics

Need help with Sociology?

Although a binary sex system imposes order in the world and helps us make sense of a complicated mass of populations, it also:

1. helps us understand reproduction

2. limits our ability to accept difference

3. explains social implications

4. helps us understand hormonal birth defects

By looking at anthropological findings in tribal societies, sociologists can see fluidity in gender, which helps us see that the boundaries within our own system of gender:

1. are psychologically established

2. are emotionally guided

3. are biologically fixed

4. may not be stable

The General Social Survey asked respondents why, on average, African Americans have worse jobs, income, and housing than white people. Most of the respondents believed that blacks:

1. don’t have the motivation to pull themselves out of poverty

2. prefer to live that way

3. have been socially repressed

4. have less inborn abilities to learn

Under the sex/gender system, men universally perform the kinds of tasks:

1. that require more intelligence

2. that are accorded higher value than those done by women

3. that require more strength.

4. that require more education

Many people believe sex to be an either-or situation (either male or female), but sociologists believe natural sex is:

1. strictly biological

2. more of an ideal than an absolute

3. a myth

4. distinctly different

Vision Corporation has the following on its financial statement:

Preferred Stock 9%, $100 par, cumulative,

10,000 shares authorized 450,000

Common Stock, $3 par, 600,000 shares authorized,

288,000 issued 864,000

Paid-in Capital - Preferred 750,000

Paid-in Capital - Common 1,700,000

Retained earnings 700,000

If Vision paid a total of $77,600 in dividends, how much would each common stockholder receive for each share of stock owned? (Assume there are no dividends in arrears)

$0.06

Some other amount

$0.26

$0.13

4. Shown below is information relating to the stockholders' equity of Grant Corporation at December 31, 2009:

9% cumulative preferred stock, $100 par,

12,000 shares authorized, 7,200 shares issued 720,000

Common stock, $5 par, 800,000 shares authorized,

480,000 shares issued and outstanding 2,400,000

Additional paid-in capital: preferred stock 72,000

Additional paid-in capital: common stock 1,900,000

Retained earnings 720,000

Dividends have been declared and paid for 2009.

The average issue price per share of Grant preferred stock was:

$100.

$110.

$102.

$79.

9. When a corporation issues capital stock at a price higher than the par value:

The amount received over par value increases retained earnings.

The entire issue price is credited to the Capital Stock account.

The amount received in excess of par value constitutes profit to the issuing corporation.

The amount received in excess of par value becomes part of paid-in capital.

Which of the following is not an accurate statement regarding the distinction between debt and equity?

Only equity is considered a source of financing for operations of the business, since debt must be repaid at a specified maturity date.

If a business ceases operations and liquidates, claims of all creditors have legal priority over claims of the stockholders.

Most debt requires the borrower to pay interest; equity financing does not obligate the company to make a specified payment.

The providers of equity are owners of the business; the providers of borrowed funds are creditors.

A $1,000 bond that sells for 104 has a selling price of

The FICA tax paid by an employer is:

Greater than the amount paid by the employee.

Less than the amount paid by the employee.

Equal to the amount paid by the employee.

The employer does not pay FICA tax, only the employee pays the tax.

On December 1, Year 1, Bradley Corporation incurs a 15-year $360,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $4,321, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, Year 1. Compute the total amount to be paid by Bradley over the 15-year life of the mortgage. Round your answer to the nearest dollar amount.