MODULE 7 - RECORDED

MODULE 7 - RECORDED - View Attempt

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View Attempt 2 of 2 Title: 07_Recorded Cash Flows Started: May 7, 2010 9:12 AM Submitted: May 7, 2010 10:08 AM Time spent: 00:56:30 Total score: 100/100 = 100% Total score adjusted by 0.0 Maximum possible score: 100 Done 1. Capital budgeting deals with cash inflows and cash outflows as part of the process. Select a minus (–) from the drop-down box if the term represents an incremental operating cash outflow (accountants say, a credit to cash ) to the company. Select a plus (+) if an incremental operating cash inflow to the company (accountants say, a debit to cash ), and a zero (0) if it is not an incremental operating cash flow. Restrict your analysis to cash flows for capital-budgeting purposes. Statement Response Purchase $78,000 depreciable property - Corporate headquarters charges a project $8,000 overhead. No corporate outlays were required. 0 Corporate headquarters charges a project $8,000 overhead. Additional outlays were required. + The company reports depreciation expense of $13,000 in its financial statements prepared by the national accounting firm Hoggins and Rasmussen. 0 The company reports depreciation expense of $13,000 on its income-tax return. 0 Income taxes of $7,200 are associated with a project. - Interest expense of $976 is incurred on bonds issued to finance depreciable property. 0 The company receives $42,000 from disposal of depreciable property. + The company has a $4,200 1231 gain from disposal of depreciable property. 0 The company has a $4,200 1231 loss from disposal of depreciable property. 0 The company disposes of $20,000 inventory at the end of the project's economic life. + The company trades in equipment for new property and receives a trade-in credit of $10,000. + The company recieves a $4,000 investment tax credit on an investment in depreciable property. + Score: 10/10 2-5 NCI 2. Friedhoffer Associates expects the development of the northwest part of the United States to require current assets of $108,000— additional inventory of $65,000 and accounts receivable of $43,000. The company will rely on $38,000 trade credit (accounts payable) to finance part of current assets. Your location: Assessments View All Submissions › View Attempt View Attempt https://ecampus.unt.edu/webct/urw/lc3868415321231.tp3868415343231/. .. 1 of 8 5/7/2010 12:03 pm
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How much long-term financing from bond holders, preferred stockholders, and common shareholders does the company need to raise from security holders? How much is net capital invested in current assets? Respectively Student Response A. $108,906 and $70,000 B. $70,000 and $108,906 C. $38,000 and $43,000 D. $43,000 and $65,000 E. $70,000 and $70,000 Score: 5/5 3. Melton Company had taxable earnings of $325,400. What is the company's marginal tax rate to use in decision making based on the schedule nearby?
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MODULE 7 - RECORDED - View Attempt

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