This Tutorial contains excel sheet P10-4 (similar to) Opportunity cost. “� Richardses’ Tree”� Farm, Inc. has branched into gardening over the years and is now considering adding patio furniture to its product lineup. “� Currently, the area where the patio furniture is to be displayed is a vacant slab of concrete attached to the indoor shop. The company originally paid “�$8000 to put in the slab of concrete three years ago. It would now cost “�$13000 to put in the same slab of concrete. Should the company consider the concrete slab when expanding its outdoor garden shop to include patio”� furniture? If”� yes, which value should it”� use?Should the company consider the concrete slab when expanding its outdoor garden shop to include patio”� furniture? If”� yes, which value should it”� use?”�”� “�(Select the best”� response.) A. No. The slab is a sunk cost unless there is another use for the slab that could provide cash flow to”� Richardses’ Tree Farm. The additional cash flow that the slab could provide is the opportunity”� cost, not the current replacement cost or the original cost. B. “�Yes, use “�$13 comma 000 as the cost. C. “�Yes, use “�$8 comma 000 as the cost. P10-5 Working capital cash flow.”�”�Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These plastic bottles cost $0.007 each. The monthly sales for the first four months of the coming year are as follows: What is the monthly increase or decrease in cash flow for inventory given that an increase is a use of cash and a decrease is a source of cash?”�”�Note:”�”�Enter a decrease as a negative number. What is the change in working capital for”� January? What is the change in working capital for”� February? What is the change in working capital for”� March? P13-3 (similar to) Average production cycle. Use the following account information to find the average production cycle for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company Cash sales � $463,000 Credit sales $573,000 Total sales � $1,036,000 Cost of goods sold � $607,205 What is the average production cycle for Rian”� Company? P13-4 (similar to) � � � � Average production cycle. Use the following account information for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company � � � � � � “� � � � � � 12/31/14 � 12/31/13 Change Accounts receivable $42,912 � � $52,041 � � $9,129 Inventory � $62,011 � � $66,087 � � $4,076 Accounts payable � $29,433 � � $27,645 � � $1,788 2014 Selected Income Statement Items for Rian Company � � Cash sales “�$576000 Credit sales “�$500000 Total sales Cost of goods sold “�$554736 For the coming”� year, Rian Company wants to reduce its average production cycle to 39.5 days. If the”� target-ending inventory for 2015 is “�$68267″�, what cost of goods sold will the company need to reach its”� goal? P13-5 (similar to) Average collection cycle. Use the following account information to find the average collection cycle for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company 2014 Selected Income Statement Items for Rian Company P 13-6 Average collection cycle. Use the following account information for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company 2014 Selected Income Statement Items for Rian Company Cash sales Credit sales Total sales “� Cost of goods sold “� Rian Company had set a target of 23.2 days for the collection cycle for 2014. If total sales had remained at $ 965000, how much of the sales revenue would have needed to be cash sales for the company to have met the collection”� goal? P13-7 (similar to) Average accounts payable cycle. Use the following account information to calculate Rian”� Company’s average accounts payable cycle. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company 2014 Selected Income Statement Items for Rian Company Cash sales “�$539000 Credit sales “�$664000 Total sales “�$1203000 Cost of goods sold “�$632489 P13-8 (similar to) Average accounts payable cycle. Use the following account information for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company Rian Company had set a target of 16.6 days for its payment”� (accounts payable) cycle. What would the ending balance in the accounts payable account for 2014 have needed to be to reach this target”� (holding all other accounts the”� same)?
Previous answers to this question
This is a preview of an assignment submitted on our website by a student. If you need help with this question or any assignment help, click on the order button below and get started. We guarantee authentic, quality, 100% plagiarism free work or your money back.
Get The Answer