MODULE 7 - UNRECORDED

MODULE 7 - UNRECORDED - View Attempt...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
07_Unrecorded Cash Flows Started: May 1, 2010 5:10 PM Submitted: May 1, 2010 5:10 PM Time spent: 00:00:25 Total score:0/350 = 0% 1. Cash in and cash out 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 Value Correct Match Purchase $78,000 depreciable property not answered 0.0% - Corporate headquarters charges a project $8,000 overhead. No corporate outlays were required. not answered 0.0% 0 Corporate headquarters charges a project $8,000 overhead. Additional outlays were required. not answered 0.0% + The company reports depreciation expense of $13,000 in its financial statements prepared by the national accounting firm Hoggins and Rasmussen. not answered 0.0% 0 The company reports depreciation expense of $13,000 on its income-tax return. not answered 0.0% 0 Income taxes of $7,200 are associated with a project. not answered 0.0% - Interest expense of $976 is incurred on bonds issued to finance depreciable property. not answered 0.0% 0 The company receives $42,000 from disposal of depreciable property. not answered 0.0% + The company has a $4,200 1231 gain from disposal of depreciable property. not answered 0.0% 0 The company has a $4,200 1231 loss from disposal of depreciable property. not answered 0.0% 0 The company disposes of $20,000 inventory at the end of the project's economic life. not answered 0.0% + The company trades in equipment for new property and receives a trade-in credit of $10,000. not answered 0.0% + The company recieves a $4,000 investment tax credit on an investment in depreciable property. not answered 0.0% + General Feedback: REM that each item is from the perspective of the company as a whole. A credit to any item other than cash is a debit (increase) to cash. A debit to any item other than cash is a credit (decrease) to cash. Score: 0/10 2-11 NCI 2. Calculating ITC-- Friedhoffer example problem View Attempt file:///C:/Users/Mat/Documents/00%20-%20school/CURRENT%20CL. .. 1 of 20 5/1/2010 8:55 pm
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A company makes a $1,000 investment in allowable property and the ITC is 8 percent. What is the net cash invested in allowable property? Student Response Value Correct Answer Feedback A. $920 B. $80 C. $880 D. $890 E. $980 General Feedback: The ITC is a percentage of the allowable investment and reduces the investment. That increases the expected rate of return on investment. Score:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 20

MODULE 7 - UNRECORDED - View Attempt...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online