As part of adopting a broader vision of inclusion, an organization needs to also be involved with others beyond the organizational walls to include ______.
a. the surrounding community
b. local politicians
c. employees’ families
d. stakeholders
a. the surrounding community
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How is Accumulated Depletion disclosed in the financial statements?
a. Contra-asset account b. Expense account c. Contra-liability account d. Contra-revenue account
Costs incurred in storing inventory usually are not included in inventory costs
Indicate whether the statement is true or false
The insufficient capacity of a company's plant asset to meet the company's productive demands is called ________.
What will be an ideal response?
The Boeing Corp is considering building a new aircraft, the 787--larger than the 747 and larger than the Airbus A380. The company's Renton WA Facility, where 747s are currently manufactured, would have to be expanded
Expansion costs are forecast to be $2.5B, incurred at t = 0. Also at time t = 0, before production begins, inventory will be increased by $1.855B. Assume that this inventory is sold at the end of the project at t = 2. The first sales from operation of the new plant will occur at the end of year 1 (t = 1 ). Boeing forecasts sales of 220 planes in each of the two years. The plane will be sold for $130M each. The cost of manufacturing a plane is $115M. Annual overhead expenses are $775M. The construction facilities are classified as 15 year property. When the plant is closed it will be sold for $1B. The company is in the 34% marginal tax bracket. Boeing's cost of capital is 12%. What are the operating cash flows at the end of Year 1 (t = 1 )? MACRS Depreciation Rates Year 10-Year 15-Year 1 10.00% 5.00% 2 18.00% 9.50% 3 14.40% 8.55% A) $1,584M B) $1,709M C) $1,945M D) $2,400M E) $2,525M