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Alex
3 years ago
12

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company

bought some land six years ago for $4.5 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $4.8 million. The company wants to build its new manufacturing plant on this land; the plant will cost $12 million to build, and the site requires $720,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?
Business
2 answers:
dezoksy [38]3 years ago
6 0

Answer:

The proper cash flow investment on fixed assets amount will be $17.22 Million

Explanation:

Firstly we take note that the land has already been purchased so an investment of $4.5 million has been already invested in the project therefore this is the amount that will be used as purchasing of land as it actually involved the spending of $4.5 million in cash to purchase this long term asset that is why we use this amount rather than $4.8 million as this is the fair market value of the land but not the initial amount that costed the company to acquire the land. Further we are given the cost of the plant of $12 million and a further $720000 which will be used to refurbish the land in order to grade the land for building the plant.

The cash flow for initial investment in fixed assets = $4.5 million + $12 million + $0.72 million($720000) = $17.22 Million

we sum all these amounts as they are part of the initial investment where the company builds the plant.

djverab [1.8K]3 years ago
5 0

Answer:

Cash flow amount = $17.52 million.

Explanation:

Cash flow amount = $4.8m of land + $12 m of building + $720k of grading = $17.52 million.

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Answer:

A

Explanation:

In this question, we are to evaluate the validity of the options. We were told he used the acquisition method. When do we use the acquisition method?

The acquisition method is used when a company is taken in by another company by using a merger, acquisition or through a consolidation.

Now, out of all the options presented, we can see that the selling price less the acquisition value is recorded as a realized gain or loss.

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3 years ago
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If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 uni
Lyrx [107]

Answer:

a) True

Explanation:

Sales = Opening + Production - Closing

$200,000 = $22,000 + Production - $24,000

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Hence, the answer is a. True

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3 years ago
The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been authorized. At the end of 2015,
Ainat [17]

Answer:a. Total common stock issued is 750 millions

b. In treasury is 109 million

c. Outstanding 750 million.

Explanation:

Issued shares referred to the total amount of authorised shares that has been issued to the public for subscription.

Treasury stock refers to parts of the issued stock that are held up for the ownership of the issuing company.

Outstanding stock refers to the total number of stock issued and fully paid for from the issued stock.

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3 years ago
On November 1, 2018, ABC signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six mo
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Answer:

ABC

In recording the payment of the note plus accrued interest at maturity on May 1, 2019, ABC would: __________

Journal Entries:

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Debit Interest Payable $1,000

Debit Interest Expense $2,000

Debit Notes Payable $100,000

Credit Cash $103,000

To record the payment of the note plus accrued interest at maturity.

Explanation:

a) Data and Calculations:

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6% 6-month Note Payable = $100,000

December 31, 2018:

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May 1, 2019:

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Transaction Analysis on May 1, 2019:

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3 years ago
Find a current news article (within one week) related to business or technology. Your article can be from a newspaper, the
klasskru [66]

Answer:

Everyone has seen organizations and agencies make a case for their cause on the television, newspaper and radio. We have all heard stories about how a media consultant has helped improve a political candidate's image by cleverly manipulating the press. There are many ways you can use the media to the benefit of your cause. This section introduces you to working with the media.

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Media advocacy is the use of any form of media to help promote an organization's or a company's objectives or goals, which come from the group's vision and mission. For example, suppose you’re a media advocate for a non-profit agency working to reduce gang violence in your neighborhood. You would try to present neighborhood issues related to gang violence and the changes you want to make in such a way that you:

Change the way community members look at gang violence. You might want to make it clear who it affects and why, or why kids get involved in gangs in the first place.

Create a reliable, consistent stream of publicity for your agency's issues and activities, including articles and news items about the causes and results of gang violence and about what your agency’s work entails; personal interest stories; success stories; interviews with agency staff and current and former gang members, etc..

Motivate community members and policy makers to get involved.  You probably have ideas about what could be done with public funding, or with government policies that addressed gang violence. You might have volunteer opportunities, or want to publicize a city- or state-sponsored initiative that needs public input and support.  Or perhaps you’re trying to raise money for your work. The media can help with all of these...if you know how to work with them.

Media advocates, or the people who work to attract publicity for organizations and causes, know that the media can get a public or social policy message across to the largest audience possible in the least amount of time.

As a media advocate, you can use the media to:

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Explanation:

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