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Kipish [7]
3 years ago
9

Masters Golf​ Products, Inc., spent 4 years and $ 1 comma 200 comma 000 to develop its new line of club heads to replace a line

that is becoming obsolete. To begin manufacturing​ them, the company will have to invest $ 1 comma 790 comma 000 in new equipment. The new clubs are expected to generate an increase in operating cash inflows of $ 746 comma 000 per year for the next 13 years. The company has determined that the existing line could be sold to a competitor for $ 254 comma 000. a. How should the $ 1 comma 200 comma 000 in development costs be​ classified? b. How should the $ 254 comma 000 sale price for the existing line be​ classified? c. What are all the relevant cash flows for years 0 thru 13​? ​(Note: Assume that all of these numbers are net of​ taxes.)
Business
1 answer:
marin [14]3 years ago
5 0

Answer:

The development should be not be considered as it not a relevant cash outflow

The $254,000 sale price for existing line is a relevant cash inflow

Cash flows:

Year    0      -$$1,536,000

Years 1-13     $746,000

Explanation:

The development cost has already been incurred,it is not a relevant cash outflow since the cash flows to be considered are those would be incurred in the future in respect of the new line of club heads.

The sale price  of the existing line is a relevant inflow as it would only be received as a result of switching to the new line of club heads.

The relevant  cash  flow from year 1 to 13 is computed thus:

year 0 cash outflow would be the cost of new equipment less the sale price of existing line i.e -$1,790,000+$254,000=-$1,536,000

In years 1 to 13 ,there would cash inflow of $746,000 in each year

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Answer:

B.

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Therefore they will be no need for adjustment to be recorded for bank errors, outstanding checks, and deposits in transit.

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3 years ago
Corporate codes of ethical conduct: Select one: a. effectively deter unethical behavior. b. are sometimes viewed as thinly disgu
skad [1K]

Answer:

B

Explanation:

Corporate code of ethics is defined as a set of laid down rules and regulation that is meant to inform and guides the workers towards professionally conducting themselves in a way that aligns with the mission and core values of the organization .

However , having a code of ethical conduct in place in an organization does not mean compliance , until necessary measures for compliance are put in place. Therefore it is possible to have the code of ethics with minimum or no compliance to it. Based on this , it can sometimes be viewed as thinly disguised attempts to mislead the public into thinking that the company behaves ethically.

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3 years ago
A concrete block making company is developing an aggregate capacity plan from the following sales forecast for its 6” and 8” con
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7 0
3 years ago
Which team member has the most significant role in a team effort?
MrRissso [65]

Answer:

D. All members are equally important

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Edgenuity 2020

6 0
2 years ago
Suppose that the supply function for honey is p=​S(q)=0.4q+2.8​, where p is the price in dollars for an 8​-oz container and q is
Ivanshal [37]

Answer:

The demand function is p= (-2.1)*q + 15.3

Explanation:

The supply function for honey is p=​S(q)=0.4*q+2.8​, where p is the price in dollars for an 8​-oz container and q is the quantity in barrels. The equilibrium price is ​$4.80. So, the equilibrium quantity is:

4.80=0.4*q+2.8​

Solving:

4.80 - 2.8=0.4*q

2=0.4*q

2÷0.4= q

5=q

The demand​ function, assuming it is linear, is p=​m*q+b

The equilibrium quantity is 5 barrels and the equilibrium price is ​$4.80; and the demand is 4 barrels when the price is ​$6.90. So:

\left \{ {{4.80=m*5+b} \atop {6.90=m*4+b}} \right.

Isolating the variable "b" from the first equation, you get:

4.80 - m*5= b

Replacing the previous expression in the second equation you get:

6.90=m*4 + 4.80 - m*5

6.90 - 4.80=m*4 - m*5

2.1= (-1)*m

2.1÷(-1)= m

-2.1=m

Replacing the value of "m" in the expression 4.80 - m*5= b you get:

4.80 - (-2.1)*5= b

Solving you get:

15.3= b

So, <u><em>the demand function is p= (-2.1)*q + 15.3</em></u>

3 0
3 years ago
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