ABC Manufacturing has a project that requires an initial investment of $100,000 and has the following expected stream of cash flows: Year Annual cash flow 1 $80,000 2 60,000 3 20,000 Assuming the company's cost of capital is 12 percent, what is the profitability index for the project?
A) 0.749
B) 1.335
C) 1.600
D) 2.985
B
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Under the cash basis of accounting, the allowance method is generally required for financial reporting purposes
Indicate whether the statement is true or false
Harper Company lends Hewell Company $40,000 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared?
A) Cash 200Interest Revenue 200 B) Interest Receivable 800Interest Revenue 800 C) Interest Receivable 200Interest Revenue 200 D) Note Receivable 40,000Cash 40,000
During the year, a company incurred $498,000 of manufacturing overhead costs and allocated $510,000 of manufacturing overhead costs
At the year-end, the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold. Indicate whether the statement is true or false
In which country is safety, as a motive for buying cars, most relevant?
a. England b. Germany c. The Netherlands d. Italy