Ask Question, Ask an Expert


Ask Basic Finance Expert

problem: A number of transactions follow that affect a specific division within a multiple-division firm. For each transaction describeed, indicate whether the transaction would increase (IN), reduce (D), have no effect (N) or have an indeterminate (I) effect on the following measures: asset turnover, ROI, profit margin, & RI for the present fiscal year. Each transaction is independent:

[A] The division prepares down an inventory of obsolete finished goods. The journal entry is:

Cost of Goods Sold 80,000

Finished Goods Inventory 80,000

[B] A special overseas order is established. The sales price for this order is well below the sales value on normal business but is sufficient to cover all costs traceable to this order.

[C] A piece of machine is sold for $150,000. The machine’s original cost was $900,000. At the time of sale, the book value of the machine is $180,000. The sale of the equipment has no effect on the product sales.

[D] The division fires its R 7 D manager. The manager will not be replaced during the current fiscal year.

[E] The firm raises it target rate of return for this division from 10 to 12%.

[F] At midyear, divisional manager decides to increase scheduled annual productions by 1,000 units. This decision has no effect on scheduled sales.

[G] During the year, division manager spends an additional $250,000 on advertising. Sales immediately increase thereafter.

[H] The divisional manager replaced a labor-intensive operation with machine technology. This action has no effect on sales, but total annual expenses of the operation are expected to decline by 10%.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M921551

Have any Question? 

Related Questions in Basic Finance

According to an article in the wall street journal in june

According to an article in the Wall Street Journal in June 2010, "Treasurys should continue to benefit from the flight-to-safety bid that caught hold this spring on concerns about debt-laden euro-zone nations and the hea ...

1 what do you see as the biggest challenges in conducting a

1. What do you see as the biggest challenges in conducting a brand audit? What steps would you take to overcome them? 2. Pick a brand. See if you can assemble a brand inventory for it.

A bond with a par value of 100000 and a semiannual coupon

A bond with a par value of $1,000.00 and a semiannual coupon has a nominal yield to maturity of 5.30% and a current price of $920.00. If the bond has 6 years to maturity, what is its current yield? 4.23% 4.34% 0.00% 4.18 ...

1 what is the source of most hazardous materials incidents2

1. What is the source of most hazardous materials incidents? 2. List and describe four categories of weapons of mass destruction. 3. What six steps are common to most risk assessment methodologies? 4. Name several of the ...

Als sport store has sales of 2720 costs of goods sold of

Al's Sport Store has sales of $2,720, costs of goods sold of $2,080, inventory of $516, and accounts receivable of $426. How many days, on average, does it take the firm to sell its inventory assuming that all sales are ...

An investor estimates that next years sales for gyna inc

An investor estimates that next year's sales for Gyna Inc should amount to about 56 USD million. The company has 3.7 million shares outstanding, generates a net profit margin of about 8% , and has a payout ratio of 45%.a ...

In early 2009 an article in the new york times

In early 2009, an article in the New York Times observed: "Without a cure for the problem of bad assets, the credit crisis that is dragging down the economy will linger, as banks cannot resume the ample lending needed to ...

Given the following informationcurrent stock price 35stock

Given the following information: Current stock price $35 Stock beta: 2 Risk-free rate: 4% Market risk premium: 6% Expected dividend, D 1 : $3.00 Expected long-run growth rate of dividends: 6% What is the required return ...

Name at least three reasons why some bolts fail

Name at least three reasons why some bolts fail mechanically ? What is the most common cause of bolted joint misbehavior or failure? Name at least two problems that can be caused by overtightening the bolts ? What do we ...

Read one practical article of how psychology affects

Read one practical article of how psychology affects behavior when paying taxes. You can easily retrieve possible articles by doing an online search using the terms "psychology" and "paying taxes." Summarize the main poi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro