Showing 411 to 420 of 695 Questions
  • Perit Industries has $ 100,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 14%. Required: Which investment alternative (if either)

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  • Perry Hospital is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment. After-tax cash inflows for the two competing projects are as follows:Both projects require an initial investment of $500,000. In both cases, assume that the eq

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  • Pet Joy Wholesale Inc., a pet wholesale supplier, was organized on May 1, 2010. Projected sales for each of the first three months of operations are as follows:May $360,000June 450,000July 600,000The company expects to sell 10% of its merchandise for cash. Of sales on account, 50% are expected to be collected in the month of the

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  • Petit Industries has $100,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:The working capital needed for project B will be released at the end of six years for investment elsewhere. Pent Industries’ discount rate is 14%.Required:(Ignore income taxes.) Which investment altern

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  • Pierre Manufacturing Company has four operating divisions. During the first quarter of 2012, the company reported total income from operations of $61,000 and the following results for the divisions.Analysis reveals the following percentages of variable costs in each division.Discontinuance of any division would save 60% of the fixed costs

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  • Pine Corporation secured authorization from the state for 100,000 shares of $10 par value common stock. It has 40,000 shares issued and 35,000 shares outstanding. On June, 5 the board of directors declared a $0.25 per share cash dividend to be paid on June 25 to stockholders of record on June 15. Prepare entries in T accounts to record th

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  • Pisa Pizza Parlor is investigating the purchase of a new $45,000 delivery truck that would contain specially designed warming racks. The new truck would have a six-year useful life. It would save $5,400 per year over the present method of delivering pizzas. In addition, it would result in the sale of 1,800 more pizzas each year. The compa

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  • Pleasant Company has an opportunity to invest in one of two new projects. Project Y requires a $700,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $700,000 investment for new machinery with a three-year life and no salvage value. The two projects yield the following predicted annual resul

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  • Portsmouth Printing Corporation recently purchased a truck for $36,000. Under MACRS, the first year’s depreciation was $7,200. The truck driver’s salary in the first year of operation was $38,400.Required: Show how each of the amounts mentioned above should be converted to an after-tax mount. The company’s tax rate is 30 percent.

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  • Power Net Company is authorized to issue 50,000 shares of common stock. On August 1, the company issued 2,500 shares at $25 per share. Prepare entries in Journal form to record the issuance of stock for cash under each of the following alternatives:1. The stock has a par value of $25.2. The stock has a par value of $10.3. The stock has no

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