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The income statement for Huenra Compary for last year is provided below: The compiny had aver oge operoling as 5 ets of $9,000,000 during the
The income statement for Huenra Compary for last year is provided below: The compiny had aver oge operoling as 5 ets of $9,000,000 during the yed: Reculted: 2. Cons der each of the following questions separately and then compute the new mai igure in dicate whether the Ro will increase, decresse, ar remain unchonged os a result af the events described Q. Byusing JII the company is able to reduce the average level of imventory by $600,000 the releasec funcs are used 10 pay oft short-term shoull be entered as 12.341 . c. The company issues boncs and uses the proceeds to purchase machinery and ecuipment. thus inceasing the average assers by $200,000 Interest on the bonds is $20,000 per yesr Sales remsin undianged. The new. more efficlent equipment reduces fixed production costs by $10,000 per year. (Round intermed late and final answer to 2 decimal places.) Intermed late and finel ensiver to 2 decimel places.i 6. Obsalete nems of inventory camed an the recards at a cost d$180,000 are scrapped and sddfor25% of the book value. (Uie full amoum should be emered =12.341.1 9. The company pays a cash ovidend to its shareholders, which results in a $600.000 change in average operating as sels ifround 12,34
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