The impact of management decisions and other topics
4-Financial propositions for Larkins Guild answer beneath:
Statement of Financial Position December 31, Year 2 and Year 1 (dollars in thousands)
Sales (all on recital)
Dividends during Year 2 aggregateed $135 thousand, of which $12 thousand were preferred dividends. The trade appraisement of a portion-out of dishonorable hoard on December 31, Year 2 was $150.
4. Larkins Company's dividend payout affinity for Year 2 was closest to:
A. 40.6% B. 24.6% C. 42.9% D. 14.8%
5. The Clemson Guild reputed the aftercited results definite year for the composition and sale of one of its fruits unreserved as a Tam.
Sales (6,500 Tams at $130 each)
Variable consume of sales
Variable classification consumes
Fixed advertising expenditure
Salary of fruit sequence manager
Fixed manufacturing aloft
Net playing mislaying
Clemson Guild is arduous to detail whether to disestablish the composition and sale of Tams. The playing results reputed aloft for definite year are expected to live in the foreseeable forthcoming if the fruit isn't dropped. The unroving manufacturing aloft represents the consumes of fruition facilities and equipment that the Tam fruit portion-outs delay other fruits executed by Clemson. If the Tam fruit were dropped, there would be no qualify in the unroving manufacturing consumes of the guild.
Assume that discontinuing the composition and sale of Tams succeed bear no result on the sale of other fruit sequences. If the guild disestablishs the Tam fruit sequence, the qualify in annual playing proceeds (or mislaying) should be a
A. $65,000 closeen. B. $70,000 acception. C. $55,000 closeen. D$90,000decrease.
6. Fonics Corporation is because the aftercited three competing cannonade proposals:
Initial cannonade required
Net confer-upon scold
Internal blame of reappear
Using the purpose profitability condemnation, how would the aloft cannonades be ranked (leading to smallest)?
A. Cee, Bee, Aye B. Aye, Bee, Cee C. Aye, Cee, Bee D. Bee, Cee, Aye
7. Which of the aftercited would be classified as a financing soul on the proposition of coin flows?
A. Dividends despicable on cannonades in another guild's dishonorable hoard
B. Dividends remunerated to portion-outholders of the guild on the guild's dishonorable hoard
C. Interest despicable on cannonades in another guild's bonds
D. Interest remunerated on bonds issued by the reporting guild
8. (Ignore proceeds taxes in this collection.) The aftercited grounds pertain to an cannonade:
Cost of the cannonade $18,955. Life of the purpose 5 years. Annual consume savings $5,000
Estimated salvage scold $1,000. Discount blame 10%
The net confer-upon scold of the incomplete cannonade is
A. $621. B. $0. C. $3,355. D. $(3,430).
9. A purpose profitability condemnation elder than nothing for a purpose indicates that
A. the abatement blame is close than the inner blame of reappear.
B. the purpose is uninteresting and shouldn't be pursued.
C. the guild should reevaluate its abatement blame.
D. there has been a forethought hallucination.
10. Centerville Company's debt-to-equity affinity is 0.60 Aggregate proceeds are $320,000, ordinary proceeds are $170,000, and working excellent is $80,000. Centerville's long-term liabilities must be
A. $120,000. B. $80,000. C. $90,000. D. $30,000.
11. Kava Inc. compositions industrial factors. One of its fruits, which is used in the composition of industrial air conditioners, is unreserved as K65. Grounds relating this fruit are absorbed beneath:
Selling appraisement $180--Direct materials $29--Direct drudge $5---Variable manufacturing aloft $4
Fixed manufacturing aloft $21----Variable selling expenditure $2—
Fixed selling and authoritative expenditure $17
The aloft per item grounds are based on annual fruition of 4,000 items of the factor. Direct drudge can be considered to be a mutable consume. (Source: CMA, adapted)
The guild has despicable a exceptional, one-time-only direct for 500 items of factor K65. There would be no mutable selling expenditure on this exceptional direct, and the aggregate unroving manufacturing aloft and unroving selling and authoritative expenditures of the guild wouldn't be fictitious by the direct. Assuming that Kava has surplus parts and can glut the direct delayout bitter end on the fruition of any fruit, what is the poverty appraisement per item on the exceptional direct beneath which the guild shouldn't go?
A. $59 B. $38 C. $180 D. $78
12-Financial propositions for Larkins Guild answer beneath:
13. Brittman Corporation makes three fruits that use the ordinary toil-a point image of deed. Grounds relating those fruits answer beneath:
Selling appraisement per item
Variable consume per item
Minutes on the toil
Assume that competent toil occasion is suited to suffice require for all but the lowest lucrative fruit. Up to how ample should the guild be succeeding to pay to get further of the harsh material?
A. $15.50 per minute B. $13.50 per minute C. $78.65 per item D. $39.15 per item
14-The most fresh redress equivocation and proceeds proposition of Teramoto Corporation answer beneath:
The net coin granted by (used by) operations for the year was
A. $117. B. $52. C. $112. D. $30.