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Illusion [34]
2 years ago
10

Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1,

the company purchased equipment that cost $120,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. Golden Manufacturing earned $72,000 and $83,000 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation.
Required

a. Record the purchase in a horizontal statements model.
b-1. Prepare income statements for Year 1 and Year 2.
b-2. Prepare balance sheets for Year 1 and Year 2.
b-3. Prepare statements of cash flows for Year 1 and Year 2.

Business
1 answer:
NISA [10]2 years ago
8 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Define and discuss the four common denominators of all organizations, and provide an example for each component. What is the dif
-BARSIC- [3]

Answer: The four common denominator of every organisation is a)common purpose, b) coordinated effort, c)division of labor, d) hierarchy of authority.

Explanation: Every organisation lembodied with these four common denominators:

1) coordination of effort - This is the formulation and enforcement of policies, rules, and regulations achieved through working together in a way that will maximize resources. individuals and groups contribute their effort through diverse skill sets to create value. For example every company consists of different diverse skill set- accountant, manager, clerk, security guard, etc all these people come together to fuse Thier skills in an effective running of any organization.

2)a common goal: This is achieved when every member of an organisation understands it's company's mission, strategy, and values, it tends to bring unity in the organisation and achieve success. For example When a new employee joins a business, he /she would try to fit into the existing culture which is due to a sense of belonging they feel that they will succeed by taking up the behaviors of people whom have had long membership in the culture and worthy of emulation.

3.) division of labor - This occurs when the common goal is pursued by individuals performing discrete parts of a task for greater efficiency for example in a production company Each worker performs a specific task . boosting productivity and efficiency.

4)hierarchy of authority- Also called the chain of command, is a control mechanism which aims to making people do the right things at the all times by enabling them make decisions quickly when necessary. Here order flows from the topmost pyramid of hierarchy to the lowest pyramid m for example

Nicholas receives a report from his Quality control team that a new drug has successfully passed all regulatory tests and is ready for production and sales to the public. Nicholas then sends directions to his head of finance to prepare a budget for financing the manufacturing and marketingof the new drug. He directs his marketing president to develop a marketing plan production manager to develop a production schedule based on the projected budget received from the finance manager.

Each managers will delegate part of their task to their respective department heads who will in turn, delegate some tasks to the members of respective team. Once the task has been completed, the information will flow back up through the hierarchy to Nicholas where it will be assessed and further decisions and directives will be made.

B)

---Open system: An Open system is an adaptive system with porous boundaries which allows exchange of ideas and information whether random or defined with useful feedback . It interacts with its outside environment and thus exchanges information to change thier system with changing conditions in terms of improvement and development. Examples include Hospitals, educational Sectors, Buisness organisation s etc.

--Closed systems, unlike open systems, are not adaptive, or porous. Only very thorough little information is exchanged.

A closed system does not need interactions with its environment and most times isolates from the environment to function effectively. Such systems are very a rare. Examples include the Millitary- army, Monasteries.

4 0
2 years ago
Which method of international expansion causes the least amount of risk? multiple choice joint venture licensing wholly owned su
svetlana [45]
<span>Exporting has the least amount of risk. This is because the company is simply selling its wares to other businesses and consumers, without having to worry about licensing the product, getting permissions from other governments, or having to jump through loopholes to get the product in the hands of the intended audience.</span>
5 0
2 years ago
Net Present Value Analysis Anderson Company must evaluate two capital expenditure proposals. Anderson’s hurdle rate is 12%. Data
Kruka [31]

Answer:

Initial outflows for project X and Y is $120,000

PV for project X = $148,664.98

NPV For project X = $28,664.98

NPV for project Y = $12,170.15

PV for project Y = $132,170.15

Project X is more attractive

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested .

NPV can be calculated using a financial calculator:

NPV for proposal X :

Cash flow in year 0 = $-120,000

Cash flow each year from year one to 12 = $24,000

I = 12%

NPV = $28,664.98

PV = $-120,000 + 28,664.98 = $148,664.98

NPV for proposal Y :

Cash flow in year 0 = $-120,000

Cash flow in year 3, 6, 9, and 12 = $72,000

I = 12%

NPV = $12,170.15

PV = $120,000 + $12,170.15 = $132,170.15

The project X should be chosen because its NPV is greater than that of project Y.

6 0
2 years ago
PNW, LLC purchased equipment, a building, and land for one price of $6,050,500. The estimated fair values of the equipment, buil
umka2103 [35]

Answer:

$4235350.

Explanation:

Given: Estimated fair value of the equipment= $1000000.

           Estimated fair value of the building=     $7000000.

           Estimated fair value of the land=           $2000000.

           One Purchase price of equipment, building and land= $6050500.

First finding the allocated percentage share of building.

Total amount shared by building, land and equipments= \$ 1000000+\$7000000+\$ 2000000

∴ Total amount shared by building, land and equipments= \$ 10000000

Allocated percentage share of building= \frac{Estimated\ fair\ price\ of\ building}{Total\ amount\ shared} \times 100

⇒ Allocated percentage share of building= \frac{7000000}{10000000}\times 100

∴ Allocated percentage share of building= 70\%

Now, calculating amount would the company record the building.

Amount recorded for the building= 70\% \times \$ 6050500

⇒ Amount recorded for the building= \frac{70}{100} \times 6050500

∴ Amount recorded for the building= \$ 4235350.

Hence, amount that company would record for building is $4235350.

8 0
2 years ago
Walter Industries’ current ratio is 0.5. Considered alone, which of the following actions would increase the company’s current r
MissTica

Answer:

a. Borrow using short-term notes payable and use the cash to increase inventories.

Explanation:

The formula to compute the current ratio is shown below:

Current ratio = Total Current assets ÷ total current liabilities  

where,

The current assets = Cash and cash equivalents + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses and other current assets

And, current liabilities would be

= Short-term obligations + Accounts payable

If the current ratio is 0.5 which means that the current asset is 1 and the current liabilities are 2 so the most appropriate option is a.

4 0
2 years ago
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