Which one of the following items is normally not a manufacturing cost?
A) Direct materials.
B) Factory overhead.
C) General and administrative expenses.
D) Direct labor.
E) Conversion cost.
C) General and administrative expenses.
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NVIDIA Corp. financial statements are presented below. Analysts forecast that its 2018 sales will be $8,260. The expected 2018 tax rate will be 17.35%. Assume the firm pays 5% interest on short-term debt and 7% on long term debt.
a) Use your judgement to forecast the items on the income statement and balance sheet with the percent of sales method. What is the discretionary financing needed in 2018? Is this a surplus or deficit?
Assume that the dividends per share will be $0.54 and the number of shares will be the same as in 2017.
b) Assume that DFN will be absorbed by long-term debt and that the interest rate is 2.5% of the sum of LTD and short-term debt. Set up an iterative worksheet to eliminate it.
c) Create a scatter chart of research and development vs. sales and add a linear trend line. Does there appear to be a consistent trend in this relationship?
d) Use the regression tool to verify your results from part c. Is the trend statistically significant? Use at least three methods to show why or why not.
e) Turn off iteration, and use the Scenario Manager to set up three scenarios:
1. Best Case — Sales are 15% higher than expected.
2. Base Case — Sales are exactly as expected.
3. Worst Case — Sales are 15% less than expected.
What is the DFN under each scenario?
If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period's reconciliation, the amount of this check should be:
A. Added to the book balance of cash as an outstanding check. B. Ignored in preparing the period's bank reconciliation as an outstanding check. C. Deducted from the book balance of cash as an outstanding check. D. Added to the bank balance of cash as an outstanding check. E. Deducted from the bank balance of cash as an outstanding check.
Personnel costs comprise one of the highest sources of project expense
Indicate whether the statement is true or false
Customers moving up future purchases to the present is
A) market growth. B) stealing share. C) forward selling. D) forward buying.