Ace Your Accounting Classes: Expert Tutoring_Balance Sheet
21. Raj has been staying in the society for 6 years and has spent 5 years on 10th floor. He has 6...
Raj has been staying in the society for 6 years and has spent 5 years on 10th floor. He has 6 members in his family. He is willing to give an undertaking to stay for another 5years. He has also
served as Maintaince Associate for 1.5 years. A. Resident would not be given any floor
B. Resident would be given any floor C. Resident would be referred to the Society –President D. Resident would be referred to the Welfare –Associate E. Data insufficient Ans-C Sol-% Raj is satisfying all the condition except the 2ndcondition. Thus, Raj would be rteffered to the society president
22. A company is considering two mutually exclusive projects. Both require an initial cash outlay of Rs.
A company is considering two mutually exclusive projects. Both require an initial cash outlay of Rs 10,000 (with no salvage value) and have a life of 5 years. The company’s required rate of return is 10 per cent, and it pays tax at a rate of 35 per cent. The project will be depreciated on a straight line basis for tax purposes. The cash flows (before depreciation and taxation) expected to be generated by the projects are as follows: Year 1 2 3 4 5 Project A (Rs) 4,000 4,000 4,000 4,000 4,000 Project B (Rs) 6,000 3,000 2,000 5,000 5,000 Calculate the net present value and the IRR for each project, and suggest which project should be accepted and why.
23. Here are incomplete financial statements for Donavan, Inc. Calculate the missing amounts. DONAVAN...
Here are incomplete financial statements for Donavan, Inc. Calculate the missing amounts.
DONAVAN, INC. Balance Sheet
Assets
Cash $ 14,900
Inventory 17,900
Buildings 37,100
Total assets $69,900
Liabilities and Stockholders' Equity
Liabilities
Accounts payable $ 6,000
Stockholders' Equity
Common stock (a)
Retained earnings (b)
Total liabilities and stockholders' equity $69,900
DONAVAN, INC. Income Statement
Revenues $84,200
Cost of goods sold (c)
Salaries and wages expense 10,260
Net Income $ (d)
DONAVAN, INC. Retained Earnings Statement
Beginning retained earnings $19,900
Add: Net income (e)
Less: Dividends 4,060
Ending retained earnings $34,900
24. Comprehensive Problem 3 Part 1: Selected transactions completed by Kornett Company during its fir...
Comp. Prob 3 Kornett Co.
Part 1, 2, 3, 4, &5