Reference no: EM13795945
1. List and discuss the three payment-determination bases.
2. List and describe the three categories of net assets.
3. Which of the following is not a "principle" of financial accounting?
A. Historical cost
B. Revenue recognition
C. Continuity
D. Matching
E. Full disclosure
4. Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?
A. Reduces it
B. Increases it
C. No effect
5. In 20X4, Olentangy Health Care (OHC)'s cost of capital was 6%. Its investments on a historical cost valuation basis are $80,000, on a replacement cost basis are $100,000, and on a current market value basis are $110,000. If you were on OHC's board, what minimum level of annual cash flow would you require in order to continue operations and proceed with planned significant new investments?
$6,000. Significant new investments should be made only if the return based on replacement cost is greater than the firm's cost of capital. So, what cash flow, when divided $100,000, gives 6%.
A. $4,800
B. $6,000
C. $6,600
D. $8,000
6. Beverly Enterprises owns a nursing home that is currently earning $2.0 million in cash flow on an annual basis, but this amount is expected to drop in the future. The nursing home has a book value of $20 million, a replacement cost of $40 million, and a current sale value of $10 million. If Beverly Enterprises has a cost of capital equal to 15 percent, at what value of annual cash flow would Beverly Enterprises be likely to sell the nursing home?
A. $1,500,000
B. $2,000,000
C. $4,000,000
|
Consider a firm using labor and capital as its only inputs
: Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..
|
|
Discuss benefits and results that organization has achieved
: From the library (research companies that you believe have exceptional quality standards (i.e., have achieved six Sigma certification)., select one organization that has achieved Six Sigma certification. Then, discuss the benefits and results that..
|
|
What is the elasticity of demand with respect to advertising
: Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero, Determine the profit maximizing ticket price for the theatre. What is the price elasticity of its demand at t..
|
|
How will pricing relate to elasticity of your product
: Identify elasticity of the product - Include rationale for the following questions and How will pricing relate to elasticity of your product?
|
|
Problems based on calculation of olentangy health care
: Which of the following is not a "principle" of financial accounting?
|
|
Describe where you see each of five conflicts in everyday
: Describe where you see each of the five conflicts in everyday life (e.g., in social media, music, literature, or online learning). How does conflict appear in two or three of the various venues mentioned above?
|
|
Marginal revenue-marginal cost and average total cost curves
: Assume that the market for Coca-cola in your area is perfectly competitive, with Demand P= 11-0.1Qd and supply P= 1+ 0.1Qs. Each firm that sells Coca-cola is identical, with Total Cost TC= 1+0.5Q+2Q? Which gives Marginal Cost MC= 0.5+4Q. Currently th..
|
|
Assignment on renting vs. buying
: Renting vs. Buying
|
|
Describe how a wave is different from a pulse
: Describe how a wave is different from a pulse If we double the frequency of a vibrating object, what happens to its period? Does the frequency that you hear increase, decrease, or stay the same
|