Jones Company requires prepayment from all customers. Jones Company reported revenue of $258,000 on its Year 1 income statement. The balance in its Unearned Revenue account was $12,000 at the start of Year 1 and $4,000 at the end of the year. Based on this information alone, the amount of cash that Jones collected from customers for Year 1 was $250,000.
Answer the following statement true (T) or false (F)
True
Ending balance of unearned revenue of $4,000 = Beginning balance of unearned revenue of $12,000 + Increase due to cash collected in advance (the unknown) ? Decrease due to services provided to customers of $258,000
Cash collected in advance from customers = $4,000 ? $12,000 + $258,000 = $250,000
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a. Component parts b. Processed materials c. Raw materials d. Accessory equipment
What is the Profitability Index of the Boeing 787 Dreamliner project? The Boeing 787-8 can carry 230 passengers up to 8,200 nautical miles at a cruising speed of mach 0.85
The Dreamliner is more comfortable for passengers because of higher cabin humidity. Boeing completed construction its assembly plant in Everett Washington in December 2007 at a total cost of $7B. Boeing has secured sales of 865 aircraft over the period 2008-2012 for total proceeds of $138.4B ($160M per aircraft). The cost of building each plane is $140M. Assume that sales (and costs) occur in December of each year. Assume that sales are spread evenly across the five years from 2008-2012. The project cash flows are shown in the table, below. What is the Profitability Index of the project if Boeing's cost of capital is 10%? Calculate the index as of December 1, 2007. Ignore taxes. Year Capital Investment Annual Sales Annual Revenues Annual Costs Cash Flows 2007 -$7,000M -$7,000 2008 173 $27,680 $24,220 $3,460 2009 173 $27,680 $24,220 $3,460 2010 173 $27,680 $24,220 $3,460 2011 173 $27,680 $24,220 $3,460 2012 173 $27,680 $24,220 $3,460 A) -1.52 B) -0.44 C) 1.06 D) 1.87 E) 2.43
Who will end up with the largest amount of money invested at an annual rate of return of 9% over the next 42 years?
A) Jim saves $1,200 per year for the first 14 years and then stops putting any new money into the account for the remaining 28 years. B) Jeremy saves nothing for the first 14 years and saves $1,200 per year for the next 14 years and then puts no more money into the account during the last 14 years. C) Jerry saves nothing for the first 14 years and then saves $1,200 per year for the remaining 28 years. D) Joey saves nothing for the first 14 years and then saves $1,500 per year for 14 years then stops putting any new money into the account for the remaining 14 years. E) John saves nothing for the first 10 years and saves $1,500 per year for the remaining 32 years.
The tax rate on capital gains is determined solely by reference to the capital asset's holding period.
Answer the following statement true (T) or false (F)