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Vitek1552 [10]
3 years ago
14

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

bought some land 10 years ago for $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 $9.6 million. The company wants to build its new manufacturing plant on this land; the plant will cost $15.2 million to build, and the site requires $960,000 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?
Cash Flow amount $ _____
Business
1 answer:
love history [14]3 years ago
4 0

Answer:

$25,760,000

Explanation:

The net amount of decrease and increase of cash a business or individual owns.

To find the proper cash flow amount used as the initial investment in fixed assets, use the following:

Calculation of initial investment outflow = cost of land + cost of plant + grading cost

= $9,600,000 + 15,200,000, + $960,000

= $25,760,000

Calculation of initial investment outflow = $25,760,000

Therefore the initial investment outflow is $25,760,000

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DedPeter [7]

What fact or facts support a situation where trade is advantageous?

B. II only

8 0
3 years ago
_____ systems are generally used by managers at lower levels of an organization. a. tactical support b. internal support c. bott
emmainna [20.7K]

Operations support systems are generally used by managers at lower levels of an organization. Therefore, the correct answer is option 'D'.

An operational support system (OSS) is a collection of computer programs or information technology (IT) system used by communications service providers to monitor, control, analyze, and manage a computer or telephone network system.

OSS software is designed specifically for telecommunications service providers and is primarily used to support network processes such as network inventory management, network component configuration, service provisioning, and fault management.

With the proliferation of new broadband and Voice over Internet Protocol (VoIP) systems, OSS and network management are increasingly being applied to home networks.

An OSS is also referred to as a business support system (BSS).

Hence, the correct option is 'D'.

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4 0
2 years ago
On April 2, Granger Sales decides to establish a $290 petty cash fund to relieve the burden on Accounting.
aliya0001 [1]

Answer and Explanation:

The journal entries are shown below:

On Apr 2

Petty cash $290

           To Cash  $290

(Being the establishment of the petty cash fund is recorded)

For recording this we debited petty cash as it increased the cash and credited the cash as it reduced the assets

On Apr 10

Mail & Postage $62

Contributions and Donations $33

Meals & entertainment $114

Cash Short and Over $4     ($290 - $62 - $33 - $114 - $77)

                       To Cash  $213

(Being the replenishment of the fund is recorded)

For recording this,  we debited the mail & postage, contributions & donations, meals & entertainment as it increased the expenses and credited the cash as it reduced the assets and the balancing figure is debited to cash short and over

On Apr 11

Petty Cash $140    ($430 - $290)

         To Cash  $75

For recording this we debited petty cash as it increased the cash and credited the cash as it reduced the assets

5 0
3 years ago
a bookstore sells 617 books on monday, 498 books on tuesday, and 563 books on wednesday. on which two days did the bookstore sel
OLga [1]

The two days on which the bookstore sells about 600 books are Monday(617) and Wednesday(563).

As of Monday, the sales of the bookstore were only 617, on Tuesday it was 498 and on Wednesday it was 563. As we arrange the data in ascending order as 498<563<617. We come to the conclusion that around 600 there are only two data which are 563 and 617. So, on Monday and Wednesday, the bookstore sells about 600 books.

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6 0
2 years ago
On January 1, 2019, Tonika Company issued a five-year, $10,000, 8% bond. The interest is payable annually each December 31. The
Alex777 [14]

Answer:

So book value at the end of December will be $9676

Explanation:

We have given amount of the bond = $10000

Rate of interest = 8 %

So interest paid Interest paid = 10000×0.08 = 800

Issue price = $9611

Effective interest rate = 9 %

Interest expense = 9611×0.09= 865

Discount amortization = 865-800 = 65

Book value at the end of December 31,2019 = 9611+65 = 9676

4 0
3 years ago
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