Planning for capital expenditures is necessary

Assignment Help Financial Accounting
Reference no: EM13792285

Planning for capital expenditures is necessary for all of the following reasons except:

machinery and other fixed assets wear out

expansion may be necessary to meet increased demand

amounts spent for office equipment may be immaterial

fixed assets may fall below minimum standards of efficiency

Reference no: EM13792285

Questions Cloud

Investment and present value factors : Long Horn Medical Services is considering an investment of $100,000. Data related to the investment and present value factors are as follows: The investment's net present value is:
Total conversion costs : Aberge Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $45,900 and if direct materials are $27,200, the manufacturing overhead is: During the month of September, direct labor cost totaled $21,240 and direct l..
Basis in accounts receivable-partnership interest : Sarah’s basis in her partnership interest was $120,000, including her $40,000 share of partnership liabilities. The partnership decides to liquidate, and after repaying all liabilities, distributes all remaining assets proportionately to the partners..
Cash receipts budget-cash disbursements budget : Johnson Corp is interested in purchasing some new material-handling equipment right after the beginning of the new year. They would like to finance the new equipment with cash and marketable securities, but if necessary they can get a short-term loan..
Planning for capital expenditures is necessary : Planning for capital expenditures is necessary for all of the following reasons except:
Through the cafeteria plan : Andrew earns $100,000 per year in salary. he puts $6,000 per year in his 401k and his employer matches it. his company offers a cafeteria plan and Andrew pays his share of his medical insurance premiums of $5,000 per year through the cafeteria plan. ..
Lenient bankruptcy laws in the world toward debtors : The United States has some of the most lenient bankruptcy laws in the world toward debtors (at least for business-owning debtors). Do you think this is a good system? Why or why not?
What is the average daily cash balance : Firm Y expects a total cash need of $14,500 over the next 4 months. They have a beginning cash balance of $2,500, and cash is replenished when it hits zero. The fixed cost of selling securities to replenish cash balances is $3.50. Based on the firms ..
Factory overhead includes : Factory overhead includes:

Reviews

Write a Review

Financial Accounting Questions & Answers

  The founder of alchemy products inc discovered a way to

the founder of alchemy products inc discovered a way to turn lead onto gold and patented this new technology. he then

  They share equally in the profits and losses

Albert, Betty, and Carol own and operate the Roy Lumber Company. Each contributed one-third of the capital, and they share equally in the profits and losses. Their partnership agreement provides that two partners must authorize all purchases over $2,..

  Classified as debt or equity for tax purposes

What factors did Congress mandate to be considered in determining whether indebtedness is classified as debt or equity for tax purposes? Say you are planning to start a new business. You expect to have losses for the first 2 years and then achieve si..

  What is non controlling interests share of defs net income

ABC Company acquired a 80% interest in the DEF Company in year 1. For the year ended December 31, year 2, ABC reported net income of $100,000. During year 2, ABC sold merchandise to DEF for $10,000 at a profit of $3,000. The merchandise remained in D..

  Evaluate the division''s margin

Evaluate the division's margin, evaluate the division's turnover and  What is the division's return on investment (ROI)?

  Determine short-run average variable cost and marginal cost

For a plant size equal to 150,000 kilowatts, determine the output level that minimizes short-run average variable costs. E. Determine short-run average variable cost and marginal cost at the output level obtained in Part (D).

  Magpie corporation can deduct interest expense

Malcolm owns 60% and Buddy owns 40% of Magpie Corporation. On July 1, 2014, each lends the corporation $53,200 at an annual interest rate of 14%. Malcolm and Buddy are not related. Both shareholders are on the cash method of accounting, and Magpie Co..

  What are the net incomes for the most recent

What are the Net Incomes for the most recent three years and how well do you think this company is operating? Explain your answer.

  Evaluate the cash collections for december

Payments for inventory are 70% in the month following purchase and 30% two months following purchase-Evaluate the cash collections for December

  Beginning finished goods inventory

A manufacturing company has a beginning finished goods inventory of $22,600, raw material purchases of $30,000, cost of goods manufactured of $60,500, and an ending finished goods inventory of $33,800. The cost of goods sold for this company is:

  What is amount of goodwill associated with the investment

What is amount of goodwill associated with the investment? For 2011, what is the total amount of excess amortization for Austin's 25% investment in Gainsville?

  Compute the change in operating income

Company has three departments. Data for the most recent year is presented below: Compute the change in operating income if Olson Company eliminates Dept. C and does not replace it. Compute the change in operating income if Olson Company eliminates De..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd