Eison Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate 12%Tax rate 30%Expected life of the project 4 Investment required in equipment$280,000 Salvage value of equipment$0 Working capital requirement$20,000 Annual sales$610,000 Annual cash operating expenses$470,000 One-time renovation expense in year 3$50,000 The company uses straight-line depreciation on all equipment.The income tax expense in year 3 is:
A. $6,000
B. $42,000
C. $15,000
D. $21,000
Answer: A
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Michael has decided to invest $40,000 in three types of funds. Fund A has projected an annual return of 8 percent, Fund B has projected an annual return of 10 percent, and Fund C has projected an annual return of 9 percent. He has decided to invest no more than 30 percent of the total amount in Fund B and no more than 40 percent of the total amount in Fund C. a. Formulate a linear programming model that can be used to determine the amount of investments Michael should allocate to each type of fund to maximize the total annual return.b. How much should be allocated to each type of fund? What is the total annual return?
What will be an ideal response?
Duncan reported net sales of $2,523 million and average total assets of $1,476 million. Its total asset turnover equals 1.71.
Answer the following statement true (T) or false (F)
Chen Service applied overhead on the basis of direct labor costs during the current year. Overhead applied was $16,500. Actual overhead incurred was $17,200.Prepare the adjusting journal entry for over- or underapplied overhead .
What will be an ideal response?
Product A is made from 2 Bs and 1 C. Lead times for A, B, and C are 2, 3, and 2 weeks respectively. Currently there are 2 Bs and a 5 Cs on hand, with 5 of each scheduled to arrive at the end of week 1
If 20 As are needed during week 4, can the order be completed (it is the start of week 0 currently)?