Brandon grew up working on a farm but went to school to become an accountant. He decides to put all of his knowledge to work.

Answer:

NPV = negative 37,599

Explanation:

To determine the NPV of the new sewing machine, we subtract the investment from the present value of anticipated cash inflows.

Initial investment = Cost of machine + Training expenses - Salvage value

Initial investment = 2,450,000 + 85,000 - 250,000

Initial investment = 2,285,000

Year                                      DF(9%)   Present Value

1  Cash inflow     390,000  x 0.917      $357,798

2 Cash inflow     400,000  x 0.842    $336,672

3 Cash inflow     411,000   x  0.772     $317,367

4 Cash inflow     426,000  x 0.708     $301,789

5 Cash inflow     334,100  x 0.650     $217,077       (434,100 - 100,000)

6 Cash inflow     435,000  x 0.596    $259,376

7 Cash inflow     436,000 x 0.547     $238,507

7 Salvage value 400,000 x 0.547     $218,814  

     

Present Value of cash inflow             $2,247,401

Initial investment                                $2,285,000

NPV ($2,247,401 - $2,285,000)          (37,599)    

Conclusion: Hillsong should refrain from acquiring the new machine since the NPV is negative.      

Answer:

False

Explanation:

According to GAAP, if the costs associated with providing accounting information surpass the benefits of obtaining such data, then it should not be reported.

For instance, there might be minimal discrepancies in particular accounts that prevent a balance sheet from being accurate. If the accounting mistake is negligible, such as a few hundred dollars, it isn't practical to have an entire audit team re-examine all financial statements to find the source of the error. An adjusting entry could be utilized to balance the accounts.

Consider a scenario where you, as an auditor, need to verify the physical inventory at a factory, but some supply boxes have been misplaced. Counting all supplies and materials again could take an entire day; however, is it truly worth that time? If the items are highly valuable, then yes, otherwise, if they consist of low-cost components, likely not.

a) The finance charge totals $1,100. b) The APR stands at 9.75%. The amount needing to be financed comes to 11,000 - 4,000 = $7,000, while the total repayment equals 225 x 36 = $8,100. Thus, the finance charge is derived from the total repayment minus the financed amount, yielding $1,100. For part b), we apply the present value formula for annuities to determine the monthly interest rate i: Amount needing financing = (monthly installment x i) / [1 - (1+i)^-36], equating to 7,000 = (225/i) x [1 - (1+i)^-36], giving us i = 0.811%, which translates to APR = 12 x i = 9.732%.

mutual fund. Explanation: A mutual fund is an investment vehicle that aggregates money from various investors, typically smaller ones, and allocates these funds to buy and sell securities such as stocks, bonds, etc. This process is managed by a fund manager, usually an institution rather than a single individual, which in this context is Larkan & Tokodo, and the fund's value is determined based on the price of its shares, which reflects a portion of the investment pool.

A) For the first half of the year, the monthly demand averages to 560 / 6 = 93.33
Order size for the first six months can be calculated using: Sqrt(2 x A x O / C)
Where:
O is the cost of placing an order
C is the carrying cost per order
= Sqrt(2 x 93.33 x 55 / 2) = 71.65, rounded to 72
For the second half of the year, the monthly demand is 900 / 6 = 150
Order size for the second six months:
= Sqrt(2 x A x O / C)
= Sqrt(2 x 150 x 55 / 2)
= 90.83 or 91
B) For the first six months: Total monthly cost = (Q/2) x H + (d/Q) x S= (72 / 2) x 2 + (93.33 / 72) x 5 = $143.30 With a $10 discount, S = $ 55 - $10 = $ 45
Monthly TC at Q = 50 = (50/2) x 2 + (93.33 / 50)x 45 = $134.0 Monthly TC at Q = 100 = (100/2) x 2 + (93.33 / 100) x 45 = $142.00
Monthly TC at Q = 150 = (150/2) x 2 + (93.33 / 150) x 45 = $178.00
C)
Indeed, the manager should take advantage of this proposal and order Q = 50 units for the first six months. For the second six months, d = monthly demand = 900 / 6
= 150,

H = $2.00 for each unit monthly, S = $55, & EOQ = 91.
Calculating Monthly TC (Q = 91):
= (91/2) x 2 + (150/91) x 55
= $181.66
Monthly TC (Q = 50):= (50/2)x2 + (150/50)x 45= $185 Monthly TC (Q = 100) = (100/2) x 2 + (150/100) x 45= $167.50
Monthly TC (Q = 150)= (150/2) x 2 + (150/150) x 45= $195