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marshall27 [118]
3 years ago
8

You are thinking about a project to expand your business. In order to start the project, you have to invest $200,000 in new equi

pment and $50,000 in working capital. You have to spend $15,000 for installation and $5,000 for shipping of the equipment. A few months ago, you spent $7,000 in consulting. The marginal tax rate of your company is 34%. What is the initial outlay of this project?
Business
1 answer:
9966 [12]3 years ago
5 0

Answer:

$270,000

Explanation:

The computation of the initial outlay of the project is shown below:

The initial outlay of this project = Purchase Price of the Asset + Installation Costs + Shipping cost + Investment in Working Capital

= $200,000 + $15,000 + $5,000 + $50,000

= $270,000

We simply added the purchased price, installation charges, shipping cost and the investment in working capital so that the initial outlay could come

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I was employed as a certified public accountant (CPA) for a regional accounting firm that specialized in audits of financial ins
almond37 [142]

Answer:

1.) It depends on an individual position and conscience. If I am stuck in such a situation with people of CEO, COO etc stand i'd be worried about not only my job but also about my career. As these kinda instances can dismantle your career and can have a lasting effect.In my case i'd not have volunteered as the CEO,COO have the power to dissappear information and documents. It would be a blind move if i go and volunteer for it and they documents are not found. However, if the situation is different and i am in possession of those copies of cheques then i'd be blunt in sharing the same to concerned authorities. Also if you have the evidence with you ,no position can coerce you into doing anything once you provide it to concerned authorities because then you have the edge.

2.) loans without sufficient collateral, drawing cheques in spouses's names,paying of personal expenses from corporate credits etc.,

These are just allegations ,if none of them are proved in the court or inquiry ,then these are mere allegations. if however,are supported by evidences,these can be a case if unethical practices.

3.) The ethics of a professional Accountant are-

a.) objectivity- Seeing the things as they are with no bias. Assuming everything that you work for as something pure and respect your work in any way possible.

b.) honesty- One who stands honest with his job are poster figures for any department or organisation a person work on or for. It is implied for anyone to be honest to his work.

c.) Professional competence- An employees is supposed to be of professional competence to his work and organisation. He is required to keep.his knowledge update to that level.of oragnisation's requirement.

d.) Confidentiality- is what the Job descripition states. An accountant by profession is not allowed in any way to share the information of his clients or organisation unless law specifies it so.

e.) Professional Behaviour- A professional behaviour. includes reaching the work on time,completion.of duties to the firm , work within the organisation for its betterment etc. It is in the job description in any organisation

4.) FDIC'S OFFICERS should have been more careful and diligent while working on the case. Each and every department concerned to the alleged wrongdoers sould have been checked for evidences which they clearly didnot do. They were not 100% vigilant with their work which is what made the situation awkard for you.

5.) lesson's that can be learnt are- Business are way too practical and decisions have to be made on the merit of the situation. You can follow your gut in business just as you do or can in life. But sometimws all it takes is one moment that gets you in a position where nobody can touch. In this instance if you had those copies of cheques in your possession,no CEO ,or COO can coerce you into doing anything and at that moment it solely depends upon your reading of the situation.

7 0
3 years ago
If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar
Firdavs [7]

Answer:

Note: <em>The complete question is attached as picture below</em>

1a. The one year spot rate can be calculated using the one year zero bond.

PV * (1 + S1) = FV

1 + S1 = 1000 / 900

S1 = 1.1111 - 1

S1 = 0.1111  

S1 = 11.11%

1b. PV of the 2 year bond = $950

Annual coupon = 1000 * 5% = $50

950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2

950 = 50 / 1.1111 + 1,050 / (1 + S2)^2

1,050/ (1 + S2)^2 = 950 - 45 = 905

(1 + S2)^2 = 1050 / 905

1 + S2 = 1.160221/2

S2 = 7.714%

1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2

Price of the 2 year zero bond = 1,000 / 1.1602

Price of the 2 year zero bond = 861.9203586

Price of the 2 year zero bond = $861.92

3 0
3 years ago
A company uses the declining-balance method of calculating depreciation expense.On January 1, the company buys machinery for $75
elixir [45]

Answer:

Book value for the 3rd year = $ 750,000 - $366,000 = $ 384,000

Explanation:

Straight line rate= 100 % ÷ Useful Life = 100 ÷ 10= 10 %

Double Declining rate = 2 * Straight Line rate= 2 * 10= 20 %

Depreciation expense= Double  declining balance rate * Beginning period book value

Depreciation expense for the first year =    20 % $ 750,000= $ 150,000

Book value for the first year = $ 750,000 - $ 150,000= $ 600,000

Depreciation expense for the 2nd year =    20 % $ 600,000= $ 120,000

Book value for the 2nd year = $ 750,000 - $ 270,000= $ 480,000

Depreciation expense for the 3rd year =    20 % $ 480,000= $ 96,000

Book value for the 3rd year = $ 750,000 - $366,000 = $ 384,000

5 0
3 years ago
waller company does business in two regional segments: north and south. the following annual revenue information was determined
Alla [95]

Answer:

Detaled solution can be seen in the attached diagrams:

8 0
3 years ago
Le Place has sales of $439,000, depreciation of $32,000, and net working capital of $56,000. The firm has a tax rate of 34 perce
Dennis_Churaev [7]

Answer:

Explanation:

Sales$439,000

Profit Margin = 6% x $439,000 = $26,340

Tax liability = 34% x $26,340 = $8,956.

Cash flow from operations:

Net income $26,340

Add depreciation $32,000

Deduct net working capital changes -$56,000

Deduct tax liability $8,956

Cash flow from operating activities -$6,616

5 0
3 years ago
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