Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

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

For this question i had been using spirit airlines 2015 10k

For this question I had been using Spirit AIrlines 2015 10k report on module 1. However, I'm a bit lost as to how to read it in terms of bonds. Can someone explain this to me?  http://ir.spirit.com/financials.cfm  Using ...

According to an article in the wall street journal during

According to an article in the Wall Street Journal, during the last quarter of 2008, the Walt Disney Company "lost money on a fuel hedge for the company cruise line." Why would Disney want to undertake a fuel hedge? How ...

What are the benefits from the perspective of a shareholder

What are the benefits from the perspective of a shareholder of a dividend reinvestment plan? What is the difference between a stock dividend and a stock split? Why would a company want to use a reverse stock split? If a ...

1 generate three examples of nominal variables and three

1. Generate three examples of nominal variables and three examples of quantitative variables that were not mentioned in the chapter. 2. On a piece of paper make two columns. In one column list all of the advantages of fr ...

1 what are transition economies what are some of the

1. What are transition economies? What are some of the important changes occurring in transition economies? 2. Discuss some of the major legal systems that exist around the world. What are some of the most important diff ...

Locate a newspaper or magazine article that reports a

Locate a newspaper or magazine article that reports a behavioral science research project. a. Determine whether the project is a descriptive, a correlational, or an experimental research design. b. What variables are mea ...

Wachovia corporation is a major superregional us bankthe

Wachovia Corporation is a major (superregional) U.S. bank. The Wachovia corporate Web site is located at http://www.wachovia.com. Among the cash management services available to its business customers are lockboxes. Acce ...

1 distinguish between theory model and hypothesis2 describe

1. Distinguish between theory, model, and hypothesis. 2. Describe how researchers use induction versus deduction to generate research hypotheses. 3. Describe the process by which hypotheses are developed and tested.

Project finance is difficult to define what are its

Project finance is difficult to define. What are its essential features? When deciding whether or not to back a project finance proposition, what essential features do potential lenders home in on?

1 a firm is considering the purchase of a machine which

1. A firm is considering the purchase of a machine which would represent an investment of $32 million, and would be depreciated in a straight-line basis over 3 years. Sales are expected to be $12 million per year, and op ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen