Which of the following is NOT considered in the calculation of incremental cash flows?
A) tax saving due to increased depreciation expense
B) interest payments if new debt is issued
C) increased dividend payments if additional preferred stock is issued
D) B and C
D
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Tarrant Corporation has two manufacturing departments--Casting and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: CastingFinishingTotalEstimated total machine-hours (MHs) 1,000 4,000 5,000Estimated total fixed manufacturing overhead cost$5,700$11,200$16,900Estimated variable manufacturing overhead cost per MH$1.30$2.90 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Casting Department is closest to:
A. $5.96 B. $7.00 C. $5.70 D. $1.30
What qualitative factors should managers consider before making a special order decision?
Rebecca and Donna, owners of Fine Coffee and Pastry Shop, are concerned because Panera Bread is opening a new store just one mile from their shop. Rebecca and Donna know that Panera will be offering similar products; therefore, Panera Bread will be a ____ to Rebecca and Donna.
A. competitor B. competitive ally C. strategic ally D. distributor E. internal stakeholder
Sanborn Company has 10 employees, who earn a total of $2800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:
A. Debit Salaries Expense, $5600; credit Salaries Payable, $5600. B. Debit Salaries Expense, $14,000; credit Salaries Payable, $14,000. C. Debit Salaries Expense, $8400; credit Cash, $8400. D. Debit Salaries Payable, $8400; credit Salaries Expense, $8400. E. Debit Salaries Expense, $8400; credit Salaries Payable, $8400.