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faust18 [17]
3 years ago
10

4. You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in inven

tory of $8700, an increase in accounts payables of $2300, and an increase in property, plant, and equipment of $48,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is ________.
Business
1 answer:
IrinaK [193]3 years ago
5 0

Answer:

$6400

Explanation:

Working capital is the net of current asset and current liabilities. it is a financial measure that gives insight into how liquid a company is considering that it shows whether or not the current assets can be used to settle the current obligations or liabilities of the company adequately.

The change in property, plant, and equipment of $48,000 is not an element of working capital, Hence change in working capital

= $8700 - $2300

= $6400

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Which would likely require a cost development using reproduction cost?
Minchanka [31]

Answer: Option C

Explanation:  Manufactured dwelling implies a trailer, a camper van or perhaps an engineered residence. It relates to a formation, portable in one or maybe more parts, that is built on a continuous frame and, when linked to the necessary services, is intended to be used even without a perpetual structure.

In simple words, Manufactured accommodation (usually referred to as U.S. mobile homes) is a form of precast concrete accommodation that is primarily constructed in manufacturing plants and then transferred to use locations. Thus, from the above we can conclude that the correct option is C.

6 0
4 years ago
NewKirk Inc.., is an unlevered firm with expected annual earnings before taxes of $21 million in perpetuity. The current require
IrinaVladis [17]

Answer:

$11,895,000

Explanation:

Expected annual earnings before tax = $21,000,000

Debt issue = $30,000,000

Interest rate = 9%

Annual Interest expenses = $30,000,000 × 9%

= $2,700,000

EBT = EBIT - Interest expenses

= $21,000,000 - $2,700,000

= $18,300,000

Net income = $18,300,000 × (1 - 35%)

= $11,895,000

Cash flows available to equity holders after recapitalization will be $11,895,000.

8 0
3 years ago
During a typical evening, a pizzeria receives phone orders for pizza delivery at a constant rate: 18 orders in a typical 4 minut
liberstina [14]

Answer:

the phone order that will exceed $1000 end at 4+ 3hours 23mins = 7:23 PM

Explanation:

Given the following information for pizza delivery

phone orders : 18 orders in 4 minute.

1080 pies are sold in 4 hours

pizzeria starts taking orders at 4:00 PM

profit made = $11 on 10 orders.

When will phone order profit exceed $1,000?

phone orders : 18 orders in 4 minute.

1080 pies are sold in 4 hours

4.5 orders in 1 minute

profit made = $11 on 10 orders.

profit made = $1.1 on 1 orders.

for $1000 = 909.1 orders

at 910 orders the profit made will be $1001 (which > $1000)

therefore, our calculation of time will be base on 910 orders

18 orders in 4 minute

910 orders = 202.2 approximately 202min (which will be less than $1000)

therefore, we need to increase the order to the next minutes says 203 minutes.

913 orders = (913 * 4)/18 = 202.8mins = 3.38 hours = 3hours 23mins

in conclusion, the phone order will end at 4+ 3hours 23mins = 7:23 pm

5 0
3 years ago
A General Power bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 7%. (Assume an
Mamont248 [21]

Answer:

bondholders will receive 8% of $1,000 = $80

Explanation:

The price of the bond varies depending on the yield to maturity, resulting in higher or lower gains for bondholders, but the actual cash amount received will always be equal to the coupon rate.

The same applies to the issuer of the bond, it may receive more or less money depending on the market rate, which increases or decreases interest expense, but the amount of money paid is always the coupon rate.

8 0
3 years ago
Pied Paper Corporation manufacturers safety whistle keychains. They have the following information available to prepare their ma
Nezavi [6.7K]

Answer:

The total cost of direct material purchases for October is $6,788

Explanation:

For computing the total cost, first, we have to find the production cost which is shown  below:

= October units + November or ending units × percentage given - October or beginning units  × percentage given

= 4,500 units + 4,750 units × 10% - 4,500 units × 10 units

= 4,500 units + 475 units - 450 units

= 4,525 units

Now the total cost of material would be

= Production units × number of ounces × price per ounces

= 4,525 units × 3 ounces × $0.50

= $6,788

7 0
3 years ago
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