Answer:

**Answer: Please see below**

**Explanation: The values from the question are scattered, but here is how they should appear**

Case A Case B Case C

Net income $310,000 15,000 $420,000

Depreciation expense 40,000 150,000 80,000

Accounts receivable increase

(decrease 100,000 (200,000) (20,000)

Inventory increase (decrease) (50,000) 35,000 50,000

Accounts payable increase (50,000) 120,000 70,000

Accrued liabilities increase

(decrease) 60,000 (220,000) (40,000)

To calculate the operating activities section of cash flows for each of the given cases,

we use the** Indirect method formula**

Net cash flow from operating actvities = Net Income + Non-Cash Expenses – Increase in Working Capital

Net cash flow from operating actvities =Net Income +/- Changes in Assets & Liabilities + Non-Cash Expenses

Net cash flow from operating actvities = Net Income + Depreciation + Stock Based Compensation + Deferred Tax + Other Non Cash Items – Increase in Accounts Receivable – Increase in Inventory + Increase in Accounts Payable + Increase in Accrued Expenses + Increase in Deferred Revenue

**Following the formulae above, we can determine what expense should be added or subtracted to give the operating activities of cash flow below as **

** Case A Case B Case C **

Net Income $310,000 15,000 $420,000

Net Income Adjustments to Reconcile Net Income to net Cash provided by operating activities

Depreciation 40,000 150,000 80,000

Changes in Assets and Liabilities

Accounts Receivable - 100,000 200,000 20,000

Inventory 50,000 -35,000 - 50,000

Accounts Payable -50,000 120,000 70,000

Accrued Liabilities 60,000 - 220,000 -40,000

**Net Cash Provided by Operating Activities**

** $310,000 $230,000 $500,000**

True Fit Shoe Company makes loafers. During the most recent year. True Fit incurred total manufacturing costs of $24.500.000. Of this amount. $3,000,000 was direct materials used and $16, 800,000 was direct labor. Beginning balances for the year were Raw Materials Inventory. $900,000. Work-in-Process Inventory. $600,000; and Finished Goods Inventory. $1, 300,000. At the end of the year, balances were Raw Materials inventory. $800,000; Work-in-Process Inventory. $1, 700,000; and Finished Goods inventory. $390,000.RequirementsAnalyze the inventory accounts to determine:1. Cost of raw materials purchased during the year.2. Cost of goods manufactured for the year.3. Cost of goods sold for the year.4. Cost of raw materials purchased during the year.

A company performs $10,000 of services and issues an invoice to the customer using the accrual method what’s the correct entry to record the transaction?

Assume Gillette Corporation will pay an annual dividend of $ 0.61 one year from now. Analysts expect this dividend to grow at 12.9 % per year thereafter until the 6th year. Thereafter, growth will level off at 1.7 % per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.8 %?

Derek has the opportunity to buy a money machine today. The money machine will pay Derek $43,245.00 exactly 5.00 years from today. Assuming that Derek believes the appropriate discount rate is 13.00%, how much is he willing to pay for this money machine?

A project with an initial cost of $51,400 is expected to generate annual cash flows of $16,910 for the next 5 years. What is the project's internal rate of return

A company performs $10,000 of services and issues an invoice to the customer using the accrual method what’s the correct entry to record the transaction?

Assume Gillette Corporation will pay an annual dividend of $ 0.61 one year from now. Analysts expect this dividend to grow at 12.9 % per year thereafter until the 6th year. Thereafter, growth will level off at 1.7 % per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.8 %?

Derek has the opportunity to buy a money machine today. The money machine will pay Derek $43,245.00 exactly 5.00 years from today. Assuming that Derek believes the appropriate discount rate is 13.00%, how much is he willing to pay for this money machine?

A project with an initial cost of $51,400 is expected to generate annual cash flows of $16,910 for the next 5 years. What is the project's internal rate of return

B : $6.85

C : $5.80

D : $3.00

**Answer:**

**B : $6.85**

**Explanation:**

Because Dora, Inc. has enough capacity to fill the special order in excess of regular sales volume, the fixed cost of its remain unchanged at $196,000.

Widget variable cost per unit of Dora is 210,000/70,000 = $3

To break even on the special order, the respective total sales amount has to cover all related cost, including allocated fixed cost, variable cost as well as additional shipping charges. Putting all the numbers together, we have:

3,000 x P - 196,000 x (3,000/73,000) - 3 x 3,000 - 3,150 = 0 with P is the selling price.

Solve the equation we get **P = 6.73.** Option answer A,C or D will result in loss for this special order. So, the suitable answer is B.

**Answer:**

$4.05

**Explanation:**

**Answer:**

Option c. 0.73

**Explanation:**

Data provided in the question:

Market value of securities = $5,000

Current beta of the portfolio = 1.28

Beta of the riskiest security = 1.75

Required beta = 1.15

Now,

let the beta of the other security be 'x'

Portfolio beta = weighted average of individual betas in the portfolio

or

1.28 × 8 × $5000 = [ x × (8 - 1) × $5000 ] + [ 1.75 × $5000 ]

or

$51,200 = $35,000x + $8750

or

$35,000x = $42,450

or

x = 1.21

Thus,

If she wishes to reduce the beta to 1.15, by replacing the riskiest security,

let the beta of the replacement security be 'y'

Therefore,

1.15 × 8 × $5000 = [ 1.21 × (8 - 1 ) × $5000 ] + [ y × $5000 ]

or

$46,000 = $42,350 + $5,000y

or

$5,000y = $3,650

or

y = 0.73

Hence,

**Option c. 0.73**

**Answer:**

the options are missing, but I wrote down the two possible answers

the journal entry to record the purchase assuming perpetual inventory method:

Dr Merchandise inventory 40,000

Cr Accounts payable 40,000

the journal entry to record the damaged merchandise assuming perpetual inventory method:

Dr Accounts payable 4,000

Cr Merchandise inventory 4,000

the journal entry to record the purchase assuming periodic inventory method:

Dr Purchases 40,000

Cr Accounts payable 40,000

the journal entry to record the damaged merchandise assuming periodic inventory method:

Dr Accounts payable 4,000

Cr Purchases returns 4,000

**Answer:**

Total ending inventory $ 2,162.5 LIFO perpetual method

**Explanation:**

At the time of each sale we determinate the last untis available for sale:

Beginning 175

Purchase 200

Slaes of 300

We use the entire 200 units purchase and 100 of the beginning inventory leaving

Beginning inventory of 75

Now, we continue:

Beginning inventory 75

5/15 purchase 200

Sales of 250 units

we use the entire 200 untis form the purchase and 50 units from beginning inventory

leaving

Beginning inventory 25 at 11.50 = 287.5

5/25 purcahse 150 units at 12.50 =__ 1875 __

Total ending inventory 2,162.5

**Answer:**

Returns to scale = 1.15

Increasing returns to scale.

**Explanation:**

Cobb-Douglas production function of the form:

Here, we are using a simple rule of factors to find the returns to scale:

Hence,

By adding up the powers of L and K, we can get the returns to scale.

**Returns to scale = 1.15**

Suppose, the power of L be 'a' and the power of K is 'b',

if a + b = 1, then it exhibits constant returns to scale

if a + b > 1, then it exhibits increasing returns to scale

if a + b < 1, then it exhibits decreasing returns to scale.

In our case,

a + b = 1.15 which is greater than 1, so this production function exhibits **increasing returns to scale.**

**Answer:**

a) 8 dollars

b) 1,640,000

2.- It should be rejected as decreases operating income to 410,000 from 1,640,000

contribution margin: $14

operating income: $ 410,000

**Explanation:**

68 - 60 = 8

b)

units sold x $8 contribution less fixed cost

410,000 x 8 - 1,640,000 = 1,640,000

2 contribution margin:

68 - 54 = 14

410,000 x 14 - 5,330,000 = 410,000