while guiding organization members in appropriate directions, a manager exhibits a) consideration behavior c. authoritarian beha

Answer:

The answer is option "C": ambiguous or conflicting expectations from stakeholders.

Explanation:

To ensure a project is successful, it is essential to understand the expectations of the company owners. If not, the team tasked with executing the project won't have a clear direction, enhancing the risk of project failure.

Answer:

IRR = 14.96%

The project should be rejected, because the calculated internal rate of return falls short of the required return (14.96% < 16%).

Explanation:

The internal rate of return (IRR) is an essential calculation in capital budgeting for assessing potential investment profitability. The IRR rule guides whether to pursue a project or investment, stipulating that if the IRR exceeds the minimum required return, the project should be accepted. Conversely, if it’s lower than the cost of capital or the requisite return, the project should be turned down.

The formula used is as follows:

$0 = (initial investment x -1) + CF1 / (1 + IRR) ^ 1 + CF2 / (1 + IRR) ^ 2 +... + CFX / (1 + IRR) ^ X

Initial Investment = Total initial investment costs year x-1

CFx = Cash Flow during period X

IRR = Internal rate of return

Due to the nature of the IRR formula, it cannot be computed analytically; it must be derived through trial and error or via specialized software for IRR calculation.

In this instance:

IRR = -27200 + 11200 / (1 + IRR) ^ 1 + 14200 / (1 + IRR) ^ 2 + 10200 / (1 + IRR) ^ 3

IRR = 14.96%

The company should not proceed with the investment, as the calculated IRR is less than what is required (14.96% < 16%).

Response:

Income statement

sales 78000

costs  (25000 )

insurance  (7000 )

depreciation  (9000 )

EBIT          37000

TAX                  (11000)

net profit  26000

EPS                    3.25

STATEMENT OF STOCKHOLDER'S EQUITY

  Common stock  retained earnings  additional paid-in capital  

opening balance  8000                   9000                57000  

net profit                     26000    

closing balance  8000                    35000                  57000

BALANCE SHEET  

assets    

non current assets   154000

machinery           77000

accumulated depreciation  (20000)

book value   57000

current assets   36000

prepaid insurance   3000

cash                   18000

accounts receivable  15000

total assets            190000

Equity and liabilities    

stockholder's equity  100000

common stock   8000

retained earnings   35000

paid-in capital           57000

Liabilities           90000

current liabilities   90000

Accounts payable   11000

wages payable   4000

income tax payable  75000   balancing figure

Clarification:

missing data;

Additional information yet to be recorded as of December 31 includes:

Insurance that expired in the current year, $7.

Wages owed, $4.

Depreciation expense incurred this year, $9.

Income tax expense for the year, $11.

Requirements:

1. Based on the adjusted figures, create an income statement for the current year. (Round "Earnings per share" to two decimal points. Submit answers in thousands.)

2. Based on the adjusted figures, compile a statement of stockholders’ equity for the current year. (Negative amounts should be noted with a minus sign. Provide answers in thousands.)

3. Based on the adjusted figures, construct a balance sheet for the current year. (Negative amounts should be noted with a minus sign. Provide answers in thousands.)