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MakcuM [25]
2 years ago
8

Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8

.6 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $11.4 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $22.6 million to build, and the site requires $1,010,000 worth of grading before it is suitable for construction.
Required:
What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)
Business
1 answer:
Alisiya [41]2 years ago
4 0

Answer:

$35,010,000

Explanation:

Calculation for the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Cash flow = $11.4 million + $22.6 million + $1,010,000

Cash flow = $35,010,000

Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,010,000

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Max Weber believed that a company that is a bureaucracy never achieves a competitive advantage because it is inefficient and is
Ket [755]

Answer:

False

Explanation:

Max Weber's theory on bureaucracy was in favor of efficiency and rationality in the way of operations either of a governing system or a business organisation.

Bureaucracy is the structure of administration governing any particular large organisation either a public/government organisation (ministry) or a private organisation (companies and firms). Bureaucracy as far as a company is concerned is the hierarchy structure that oversees the affairs of the business.

Hence, Max Weber speaks in favour of the fact that bureaucracy brings efficiency and rationality in how organisational activities are conducted and that the introduction of hierarchical structures reinforces this rationality as well as the maximization of efficiency as well as order in an organisation.

5 0
3 years ago
The financial statements for Highland Corporation included the following selected information:
ICE Princess25 [194]

Answer:

a. Additional paid-in capital:

= Amount received from shares issued - Common stock

= (33 per share * 93,000) - 465,000

= $2,604,000

b. Beginning retained earnings:

Ending retained earnings = Beginning retained earnings + Net income - Dividend

830,000 = Beginning retained earnings + 1,120,000 - 720,000

Beginning retained earnings = 830,000 - 1,120,000 + 720,000

= $430,000

c. Treasury stock:

= Shares issued - Shares outstanding

= 93,000 - 65,000

= 28,000 shares

4 0
2 years ago
In a certain economy, jam and bread are produced, and the economy currently operates on its production possibilities frontier. W
valkas [14]

Answer:

C. The economy experiences economic growth.

Explanation:

When the economy is already working on the production possibility frontier the economic agents are already employed and working on full optimization.

In case of economic growth the production possibility frontier shifts upward and results in producing more jam and bread.

5 0
2 years ago
Two foreign companies want to trade shares of their stock on u.s. stock exchanges. one company follows ifrs but the other compan
Svetach [21]

Answer;

-A foreign company that wants to have their shares traded on U.S. stock exchanges who uses accounting practices that comply with IFRS

Explanation;

Financial Accounting Standards Board (FASB) is the primary accounting standard-setting body in the United States. Generally accepted accounting principles (GAAP) is a set of accounting standards that have substantial authoritative support and which guide accounting professionals.

-FASB goal is to provide leadership for public companies in establishing and improving the accounting methods used to prepare financial statements. The FASB has the authority to set, but not enforce, accounting standards. Enforcement falls under the jurisdiction of the SEC. The FASB takes recommendations from the SEC and the AIPA when devising or improving standards; however, it is not required to.

3 0
3 years ago
A manufacturer of industrial grade gas handling equipment wants to have $725,000 in an equipment replacement contingency fund 10
Amanda [17]

Answer:

$41,354.98

Explanation:

Required future worth = Annual savings x FVIFA(r%, N) x (1 + r)

Required annual savings ($) = [Required future worth / FVIFA(r%, N)] / (1 + r)

= 725,000 / [FVIFA(10%, 10) * 1.1]

= 725,000 / (15.9374 * 1.1)

= 725,000 / 17.53114

= 41354.98318991235

= $41,354.98

Note: Since this is annuity due (deposit made at beginning of year), FV is divided by (1+r).

7 0
2 years ago
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