Questions from Accounting Principles

Q: For Apple’s current annual report, assume it reports the following for

For Apple’s current annual report, assume it reports the following for raw materials. Required 1. Compute Apple’s raw materials inventory turnover ratio for the mo...

Q: Zycon has produced 10,000 units of raw milk at a

Zycon has produced 10,000 units of raw milk at a $15,000 cost. These units can be sold as is to another manufacturer for $20,000. Instead, Zycon can process the units further and produce yogurt. Proce...

Q: 1. A company is considering replacing an old machine. The

1. A company is considering replacing an old machine. The old machine has a book value of $50,000 and a remaining five-year life. The old machine can be sold now for $55,000. The new machine can be pu...

Q: Kando Company currently pays $7 per unit to buy a part

Kando Company currently pays $7 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of $3 for direct materials, $2 for direct labor, and $1 for...

Q: Maya Co. currently buys a component part for $3 per

Maya Co. currently buys a component part for $3 per unit. Maya estimates that making the part would require $2.25 per unit of direct materials and $1.00 per unit of direct labor. Maya normally applies...

Q: Ibez Co. is considering a project that requires an initial investment

Ibez Co. is considering a project that requires an initial investment of $60,000 and will generate net cash flows of $16,000 per year for 6 years. Ibez requires a return of 9% on its investments. The...

Q: Dax Co. is considering an investment with the following information.

Dax Co. is considering an investment with the following information. a. Compute the net present value of the investment. b. Determine whether the investment should be accepted on the basis of net pres...

Q: A company is considering two alternative machines with different net cash flows

A company is considering two alternative machines with different net cash flows and salvage values. Present value amounts are calculated using Excel and the results follow. a. Compute the net present...

Q: The profitability indexes for three alternative investment projects follow. Each project

The profitability indexes for three alternative investment projects follow. Each project has a five-year life. (a) Which project(s) will the company accept on the basis of profitability index? (b) If...

Q: Pena Co. is considering an investment of $27,000

Pena Co. is considering an investment of $27,000 that provides net cash flows of $9,000 annually for four years. (a) If Pena Co. requires a 10% return on its investments, what is the net present value...