Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Question
Chapter 9, Problem 3ATC
a.
To determine
Compute the ratios for 2011 and 2014 using end-of-year amounts for total assets and total equity instead of averages.
b.
To determine
Based on the analysis, comment on the apparent effects of Incorporation DE’s acquisition of Company PE.
c.
To determine
Based on the analysis, explain whether the effects of the merger were good or bad for Incorporation DE.
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Problem 12-12 (IAA)
Bicol Company uses approximately 200,000 units of raw
material in its manufacturing operations.
On December 1, 2021, the entity purchased a call option
to buy 200,000 units of the raw material on July 1, 2022 at
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The entity paid P20,000 for the call option. The entity
designated the call option as a cash flow hedge against
price fluctuation for its July purchase,
The market price of the raw material is P28 on December
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1. What amount should be reported as derivative asset on
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a. 600,000
b. 580,000
C.
20,000
d.
0
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in 2022?
a. 300,000
b. 500,000
c. 200,000
d. 20,000
3. What amount should be reported as derivative liability
on July 1, 2022?
a. 800,000
b. 400,000
c. 780,000
d.
0
4. What amount should be reported as cost of purchases on
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a. 5,000,000
b. 4,980,000
c.
4,200,000
d. 4,220,000
345
Question Content Area
Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 12%. The patent is expected to generate the following amounts of annual income and cash flows:
Year 1
Year 2
Year 3
Year 4
Net income
$5,100
$6,500
$6,300
$3,000
Operating cash flows
16,800
18,500
18,200
14,750
(Click here to see present value and future value tables)
A. What is the NPV of the investment? Round your present value factor to three decimal places and final answer to the nearest dollar.
$fill in the blank 1
B. What happens if the required rate of return increases?
If the required rate of return increases,
.
Question Content Area
Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 10%. The patent is expected to generate the following amounts of annual income and cash flows:
Year 1
Year 2
Year 3
Year 4
Net income
$5,100
$6,500
$6,300
$3,000
Operating cash flows
16,900
18,200
18,450
14,800
(Click here to see present value and future value tables)
A. What is the NPV of the investment? Round your present value factor to three decimal places and final answer to the nearest dollar.
$fill in the blank 1
B. What happens if the required rate of return increases?
If the required rate of return increases,
.
Please round off please?
Chapter 9 Solutions
Survey Of Accounting
Ch. 9 - 1. Why are ratios and trends used in financial...Ch. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - 4. What is the significance of inventory turnover,...Ch. 9 - 5. What is the difference between the current...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - 9. What are some limitations of the earnings per...Ch. 9 - Prob. 10Q
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Exercise 9-1 Horizontal analysis Winthrop...Ch. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Comprehensive analysis The December 31, 2019,...Ch. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Ratio analysis Compute the specified ratios using...Ch. 9 - Prob. 14ECh. 9 - LO 13-2, 13-3, 13-4, 13-5 Exercise 13-15A...Ch. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Problem 9-21 Ratio analysis Selected data for...Ch. 9 - Prob. 22PCh. 9 - Problem 9-23 Ratio analysis The following...Ch. 9 - Prob. 24PCh. 9 - Prob. 1ATCCh. 9 - Prob. 3ATCCh. 9 - ATC 9-5 Ethical Dilemma Making the ratios look...
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