Jorge is a Senior Project Manager at the Toyota Motor Corporation. The Toyota Camry is mid-size automobile manufactured by the a

Answer:

The Beet Juice should undergo additional processing

Explanation:

A business should opt for further processing of a product if the income gained from the split-off point exceeds the costs associated with that further processing.

It’s also vital to understand that all expenses incurred before the crushing stage are considered irrelevant to the decision on further processing.

Product           Additional Rev.     Further process cost.     Net income(loss) ($)

Beet Fiber       40-27 =13                         16                              (3) See notes

Beet Juice       100- 43 = 57                28                              29

It is advisable to further process the beet juice into refined sugar while the beet fiber should not be processed any more. Processing the Beet Juice further will yield an additional profit of $29 per unit while Beet Fiber would lead to a deficit of  $(3)

Notes

The net income(loss) is calculated as the difference between income from further processing and the expenses for that processing. The net income(loss) for each product is worked out in the following way:

Beet Fiber  = 13- 16 = (3)

Beet Juice  = 57 - 28 = 29

Answer:

Which journal entry did Pincus make to account for uncollectible accounts in 2021?

During 2021, the company identified $10,800 as uncollectible accounts.

Dr Allowance for Uncollectible Accounts $ 10,800

Cr Accounts Receivable $ 10,800

And how is the bad debt expense recognized for 2021?

Pincus predicts that 5% of the accounts receivable as of 12/31/2021 will not be collected.

Dr Bad Debt Expense $ 1,520

Cr Allowance for Uncollectible Accounts $ 1,520

Explanation:

Pincus rendered services totaling $268,000 on credit.

Dr Accounts Receivable $ 268,000

Cr Sales $ 268,000

In 2021, $10,800 was identified as uncollectible accounts.

Dr Allowance for Uncollectible Accounts $ 10,800

Cr Accounts Receivable $ 10,800

Using the allowance method for bad debts, when an account is written off, the company records a debit to the Allowance for Uncollectible Accounts previously estimated, and a credit to accounts receivable to adjust the accounts receivable balance.

By year-end 2021, cash collected from accounts receivable amounted to $226,800.

Dr Cash $ 226,800

Cr Accounts Receivable $ 226,800

REMAINING BALANCE

Dr Accounts Receivable $ 30,400

Pincus assesses that 5% of the accounts receivable at 12/31/2021 will be uncollectible.

Dr Bad Debt Expense $ 1,520

Cr Allowance for Uncollectible Accounts $ 1,520

Answer:Utilizing the discounted cash flow model for company valuation indicates the company is valued at $85 million / 12% = $708.33 million

Each share would approximately equate to $708.33 million / 100 million = $7.0833 per share

If the firm employs the cash for new projects, future cash flows might approximate to $97.75 million, leading to a company value of $97.75 million / 12% = $814.583 million. This signifies a 15% rise in value. Consequently, share prices are anticipated to increase by 15% to $8.1458 per share.

Should the firm opt to repurchase shares with all cash, it could buy back 35.29 million shares. As we assume that future cash flows will remain unaffected by this choice, the total company value stays at $708.33 million, with each share becoming significantly more valuable = $708.33 / 64.71 million shares = $10.95. This represents a 34.36% increase compared to the previous scenario of investing the cash.

However, it’s worth noting that this scenario may be somewhat unrealistic, as it's not typical for a company to utilize all its cash for share buybacks, as this could drastically elevate stock prices (which are influenced by supply and demand) and lead to a significant increase in the cost of capital due to increased risks.