Answer:
The horizon date of Holt Enterprises is at the end of the second year.
Explanation:
The horizon date is when there is a constant growth or the growth rate becomes constant. The horizon date is the last year in the free cash flow when the growth rate is constant. It is also called forecast horizon or terminal date because it is at the end of the forecast. At the horizon date, the firm becomes stable and profitable.
The horizon date of Holt Enterprises is at the end of the second year.
Answer:
Before, During and After Processing
Explanation:
Technology can be used to track availability of materials for production <em>before</em> beginning of processing. If materials have fallen below desired level, use of technology can help notify the requisition department on time.
<em>During</em> the process technology can be used to keep track of completion stage of work - in - process materials.
<em>After</em> processing, use of technology can help communicate the availability (in-stock) of finished products which are needed by customers.
Answer: Pharaohs journal $
Date
December 31, 2017
StaffBonusexpensesDr384,900
Accruede liability Cr384,900
Narration. Staff bonus due as at date.
February 15,2018
Accrued liability Dr 384, 900
Bank Cr. 384,900
Narration. Payment of staff bonus due
Explanation:
In line with the acrual concept of recognising expenses at the period they are due for payment. The staff bonus will be recognized as an expense to the income statement in 2017 and accrued as liability in the balance sheet if it's not paid.
The payment in 2018 will be a debit to the liability account and credit to the cash or bank account.
Answer:
Speedy Bikes
a. Incremental Analysis for the sell-or-process-further decision:
Cost of an Cost an Difference
unassembled bike assembled bike
Alternative 1 Alternative 2 Increment
Sales price of unassembled bike $450 $495 $45
Manufacturing cost per unit $290 $312 (22)
Net operating income $160 $183 $23
b. Speedy should process the bikes further.
c. It will generate an incremental net operating income of $23 per bike.
Explanation:
a) Data and Calculations:
Cost of an Cost an
unassembled bike assembled bike
Direct materials $150 $155
Direct labor 70 80
Variable overhead (70% of direct labor) 49 56 ($80 * 70%)
Fixed overhead (30% of direct labor) 21 21
Manufacturing cost per unit $290 $312
Marliss will want to invest her money in a savings bond to help her save money for college. The correct answer is A.
