A100%2BFall+1%2C+2011

A 0 b 8000 c 6000 d 4500 e none of the above 8 which

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: iece of equipment. The equipment will cost $10,000 and is expected to last 5 years with no salvage value. Assume Sare's tax rate is 25%. What is the company's expected after-tax cash flow if the net income before tax is expected to be $8,000? a $0 b $8,000 c $6,000 d $4,500 e None of the above 8 Which of the following is true of a manufacturing company? a Process costing is used when the company needs cost information kept separate by the product produced. b All factory costs go into the cost of inventory. c Companies typically include detailed information about their fixed and variable costs in their financial statements. d The three inventory accounts for a manufacturing business are (1) direct materials, (2) direct labor, and (3) manufacturing overhead. e Manufacturing businesses typically include all selling expenses in the cost of inventory. Use the following information to answer questions 9 through 12: Walnut Company produces a product that has variable cost of $7 per unit and fixed cost of $4 per unit when 3,000 units are produced and sold. 9 If the sales price per unit is $12...
View Full Document

Ask a homework question - tutors are online