Answer:
True
Explanation:
Coke tried to diversify into the bottling industry by acquiring their bottlers and in the process creating a vertically integrated business. However, 5 years later, they did find out how difficult it was and it led to a failed diversification effort when sold off their bottling operations. This was majorly due to the fact that the bottling business required too much capital investment and time. Capital investment and time that an already large enterprise like coca cola couldn't afford at that period. The initial aim was to have control over the whole production process, but soon after the diversification failed, they went back to producing just the concentrates.
Answer:
Part 1
Dr Lease rentals $300........ Expense
Cr Cash Account $300
Part 2
Dr Leased Equipment $63,536
Cr Finance Lease Liability $63,536
Explanation:
Part 1. Under the operating leases the lessee pays the monthly rentals which must be accounted for as an expense and the double entry is as under:
Dr Lease rentals $300........ Expense
Cr Cash Account $300
Part 2. Under the finance lease agreement, the lessee pays the value of the asset and the interest as well. So after the date of agreement when the asset is handed over the journal entry would be recording of the equipment received, which would written at its fair value or present value of the payments made. The journal entry would be:
Dr Leased Equipment $63,536
Cr Finance Lease Liability $63,536
Answer:
b. encourages people to engage in behaviors directly related to goal accomplishment
Explanation:
When companies engage in planning, they establish a guide for the operations, setting goals and preparing the strategies and actions that will help accomplish those goals. Because of this, planning helps the employees to focus and work towards achieving the objectives.
Answer:
Project should have minimum annual cash flow of $62,373.06 to accept the project
Explanation:
Any project will be accepted if its net present value (NPV) is positive
Hence, NPV>0
Sum of discounted cash inflow - Discounted Cash outflow > 0
Annual cash inflow * PVAF (8.2%, 11 years) - $440,990 > 0
Annual cash inflow * 7.0702 - $440,990 > 0
Annual cash inflow * 7.0702 > $440,990
Annual cash inflow > $440,990 / 7.0702
Annual cash inflow > $62,373.06
So project should have minimum annual cash flow of $62,373.06 to accept the project
