3(9)KingbirdCorporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $55,728. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,100. At the end of eight years, the company will sell the truck for an estimated $27,500. Traditionally, the company has used a general rule that it should not accept a proposal unless it has a payback period that is less than 50% of the asset's estimated useful life.DonaldRobinson, a new manager, has suggested that the company should not rely only on the payback approach but should also use the net present value method when evaluating new projects. The company's cost of capital is 8%.

Calculate the cash payback period and net present value of the e proposed investment.(If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).Round cash payback period to 2 decimal place, e.g. 12.51.For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124and net present value to 0 decimal places, e.g. 5,275.)

Cash payback period		enter a number of years rounded to 2 decimal places1.56	years
Net present value		$enter a dollar amount rounded to 0 decimal places

(b)

Does the project meet the company's cash payback criteria?

The projectselect an option meetsdoes not meetcash payback criteria.

Does it meet the net present value criteria for acceptance?

The projectselect an option does not meetmeetsnet present value criteria.

3(10)BridgeportCompany is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $478,000, has an expected useful life of14years and a salvage value of zero, and is expected to increase net annual cash flows by $72,000. Project B will cost $288,000, has an expected useful life of14years and a salvage value of zero, and is expected to increase net annual cash flows by $46,000. A discount rate of10% is appropriate for both projects. Calculate the net present value and profitability index of each project.(If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round present value answers to 0 decimal places, e.g. 125 and profitability index answers to 2 decimal places, e.g. 15.52. For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124.)

		Project A		Project B
Net present value		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places
Profitability index		enter the index rounded to 2 decimal places		enter the index rounded to 2 decimal places

Which project should be accepted based on net present value?

select a project Project AProject B

should be accepted.

Which project should be accepted based on profitability index?

select a project Project AProject B

should be accepted.

4(4)Consider the following income statement data for Barolo Inc.:

	2024		2023
Sales revenue	$97,300		$86,200
Less: Cost of goods sold	45,600		53,400
Gross profit	51,700		32,800
Less: Selling and administration costs	22,500		18,300
Net Income	$29,200		$14,500

Based on common-size analysis, which of the following statements is correct?

Select answer from the options below

The increase in sales revenue in 2024 was caused by higher selling and administrative expenses.

The company's cost to sales ratio improved in 2024.

The increase in gross profit in 2024 was due to increased sales.

Net income as a percent of sales declined in 2024.

4(8)The financial data forSheridanFoods Inc. andSunlandEnterprises Ltd. for the current year are as follows (amounts in thousands):

		Annual Sales		Accounts Receivable Jan. 1		Accounts Receivable Dec. 31
SheridanFoods		$61,450		$5,700		$7,340
SunlandEnterprises		32,560		1,680		2,230

(a)

(a)

Calculate the accounts receivable turnover for each company assuming that all sales are on account.(Round answers to 1 decimal place, e.g. 18.4.)

		SheridanFoods		SunlandEnterprises
Accounts receivable turnover		enter a number of times rounded to 1 decimal place9.4times		enter a number of times rounded to 1 decimal place16.7times

(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(b)

Calculate the average number of days required by each company to collect its receivables.(Round answers to 1 decimal place, e.g. 18.4.)

		SheridanFoods		SunlandEnterprises
Days to collect		enter a number of days rounded to 1 decimal place38.8days		enter a number of days rounded to 1 decimal place..........days

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(c)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(c)

Which company appears to be more efficient at handling its accounts receivable?

select a company SheridanFoodsSunlandEnterprisesappears to be more efficient at handling its accounts receivable.

6(6)The Heidelberg Company began the period with a balance of $13,000 in its Work in Process (WIP) account. During the period the company incurred $16,000 in direct labour costs, requisitioned $10,000 in direct materials, and applied $17,000 in manufacturing overhead. Actual overhead costs for the period were $18,500. If the balance in the WIP account at the end of the period was $22,000 then Cost of Goods Manufactured for the period was

Select answer from the options below- Incorrect!

$21,000

$34,000

$35,500

$56,000

none of the above

At the beginning of the year, managers at King Industries estimated $400,000 in manufacturing overhead, 20,000 direct labor hours and 50,000 machine hours. Actual manufacturing costs at the end of the year were $425,000 in manufacturing overhead. During the year 22,000 direct labor hours and 47,000 machine hours were incurred. If overhead is applied based on direct labor hours, how much overhead was applied during the year?

Select answer from the options below

$467,500

$399,960

$440,000

$425,040

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6(6)Curly Girl Manufacturing manufactures salon-quality hair dryers. Curly Girl applies overhead based on direct labor hours. The company's predetermined overhead rate was based on an estimated 480,000 direct labor hours and $1,728,000 estimated total overhead. During November, the company manufactured 22,400 hair dryers in Job CG12 and incurred the following costs: Direct Materials: $103,040 Direct Labor (39,200 hours at $18): $705,600 and Actual overhead incurred during the month: $148,960. What is the unit cost of the hair dryers produced in Job CG12?

Select answer from the options below

$42.75

$42.40

$24.23

$36.10

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6(7) In January,WildhorseTool & Die requisitions raw materials for production as follows: Job 1 $950, Job 2 $1,500, Job 3 $770, and general factory use $650. Prepare a summary journal entry to record raw materials used.(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31	enter an account title for the journal entry on January 31Work in process Inventory	enter a debit amount3220	enter a credit amount
	enter an account title for the journal entry on January 31Raw Materials	enter a debit amount	enter a credit amount3220
	enter an account title for the journal entry on January 31 ivaCost of goods	enter a debit amount650	enter a credit amount

6(8)In January,PharoahTool & Die accumulated factory labour costs of $6,800. During January, time tickets show that the factory labour of $6,800was used as follows: Job 1 $2,390, Job 2 $1,770, Job 3 $1,500, and general factory use $1,140. Prepare a summary journal entry to record factory labour used.(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 31	enter a debit amount	enter a credit amount

6(9)During the first quarter,SunlandCompany incurs the following direct labour costs: January $44,400, February $55,400, and March $69,200. For each month, prepare the entry to assign overhead to production using a predetermined rate of93% of direct labour costs (date journal entries as at the end of the month).(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date Jan. 31Feb. 28Mar. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Jan. 31Feb. 28Mar. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date Jan. 31Feb. 28Mar. 31	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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6(10)In March,OrioleCompany completes Jobs 10 and 11. Job 10 cost $26,600and Job 11 cost $37,000. On March 31, Job 10 is sold to the customer for $42,500in cash. Journalize the entries for the completion of the two jobs and the sale of Job 10.(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 31	enter an account title to record the completion of the two jobs on March 31	enter a debit amount	enter a credit amount
	enter an account title to record the completion of the two jobs on March 31	enter a debit amount	enter a credit amount
	(To record the completion of the two jobs)
31	enter an account title to record the sale of job 10 on March 31	enter a debit amount	enter a credit amount
	enter an account title to record the sale of job 10 on March 31	enter a debit amount	enter a credit amount
	(To record the sale of Job 10)
31	enter an account title to record the cost of the job sold on March 31	enter a debit amount	enter a credit amount
	enter an account title to record the cost of the job sold on March 31	enter a debit amount	enter a credit amount
	(To record the cost of the job sold)