This Tutorial contains excel sheet\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tP10-4 (similar to)\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\u00a0\t\t\t\tOpportunity cost. “\ufffd Richardses’ Tree”\ufffd Farm, Inc. has branched into gardening over the years and is now considering adding patio furniture to its product lineup. “\ufffd 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 “\ufffd$8000 to put in the slab of concrete three years ago. It would now cost “\ufffd$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”\ufffd furniture? If”\ufffd yes, which value should it”\ufffd use?Should the company consider the concrete slab when expanding its outdoor garden shop to include patio”\ufffd furniture? If”\ufffd yes, which value should it”\ufffd use?”\ufffd”\ufffd\t\u00a0\t“\ufffd(Select the best”\ufffd response.)\tA.\tNo. The slab is a sunk cost unless there is another use for the slab that could provide cash flow to”\ufffd Richardses’ Tree Farm. The additional cash flow that the slab could provide is the opportunity”\ufffd cost, not the current replacement cost or the original cost.\t\u00a0\tB.\t“\ufffdYes, use\t“\ufffd$13 comma 000\tas the cost.\t\u00a0\tC.\t“\ufffdYes, use\t“\ufffd$8 comma 000\tas the cost.\t\u00a0\t\u00a0\t\u00a0\t\u00a0\tP10-5\tWorking capital cash flow.”\ufffd”\ufffdCool 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:\tWhat 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?”\ufffd”\ufffdNote:”\ufffd”\ufffdEnter a decrease as a negative number.\t\u00a0\tWhat is the change in working capital for”\ufffd January?\tWhat is the change in working capital for”\ufffd February?\tWhat is the change in working capital for”\ufffd March?\t\u00a0\tP13-3 (similar to) Average production cycle.\tUse the following account information to find the average production cycle for Rian Company.\t2013 and 2014 Selected Balance Sheet Accounts of Rian Company\tCash sales \ufffd\u00a0\u00a0 $463,000\tCredit sales\u00a0\u00a0\u00a0\u00a0 $573,000\tTotal sales \ufffd\u00a0 $1,036,000\tCost of goods sold \ufffd $607,205\tWhat is the average production cycle for Rian”\ufffd Company?\t\u00a0\tP13-4 (similar to)\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\tAverage production cycle.\t\u00a0Use the following account information for Rian Company.\t2013 and 2014 Selected Balance Sheet Accounts of Rian Company\t \ufffd \ufffd\u00a0\t \ufffd \ufffd \ufffd \ufffd “\ufffd\t \ufffd \ufffd\u00a0 \ufffd \ufffd \ufffd 12\/31\/14 \ufffd \u00a0\u00a0\u00a0\u00a0 12\/31\/13\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0 Change\t\u00a0Accounts receivable\u00a0\u00a0 $42,912 \ufffd \ufffd $52,041 \ufffd \ufffd $9,129\t\u00a0Inventory \ufffd\u00a0 $62,011 \ufffd \ufffd $66,087 \ufffd \ufffd $4,076\t\u00a0Accounts payable \ufffd\u00a0 $29,433 \ufffd \ufffd $27,645 \ufffd \ufffd $1,788\t\u00a0\t\u00a0\t\u00a0\t2014 Selected Income Statement Items for Rian Company\t \ufffd \ufffd\u00a0\t\u00a0\tCash sales “\ufffd$576000\tCredit sales “\ufffd$500000\t\u00a0\tTotal sales\tCost of goods sold\u00a0 “\ufffd$554736\tFor the coming”\ufffd year, Rian Company wants to reduce its average production cycle to 39.5 days.\u00a0 If the”\ufffd target-ending inventory for 2015 is “\ufffd$68267″\ufffd, what cost of goods sold will the company need to reach its”\ufffd goal?\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tP13-5 (similar to)\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\u00a0\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\tAverage collection cycle. Use the following account information to find the average collection cycle for Rian Company.\t2013 and 2014 Selected Balance Sheet Accounts of Rian Company\t2014 Selected Income Statement Items for Rian Company\t\u00a0\t\u00a0\tP 13-6\tAverage collection\u00a0 cycle.\tUse the following account information for Rian Company.\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t2013 and 2014 Selected Balance Sheet Accounts of Rian Company\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t2014 Selected Income Statement Items for Rian Company\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tCash sales\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tCredit sales\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTotal sales\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t“\ufffd\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tCost of goods sold\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t“\ufffd\t\t\t\t\t\t\tRian 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”\ufffd goal?\t\u00a0\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tP13-7 (similar to)\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\u00a0\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\tAverage accounts payable\tcycle.\tUse the following account information to calculate Rian”\ufffd Company’s average accounts payable cycle.\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t2013 and 2014 Selected Balance Sheet Accounts of Rian Company\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t2014 Selected Income Statement Items for Rian Company\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tCash sales\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t“\ufffd$539000\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tCredit sales\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t“\ufffd$664000\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTotal sales\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t“\ufffd$1203000\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tCost of goods sold\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t“\ufffd$632489\t\t\t\t\t\t\t\u00a0\t\u00a0\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tP13-8 (similar to)\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\u00a0\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\tAverage accounts payable cycle.\tUse the following account information for Rian Company.\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t2013 and 2014 Selected Balance Sheet Accounts of Rian Company\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\tRian Company had set a target of 16.6 days for its payment”\ufffd (accounts payable) cycle. What would the ending balance in the accounts payable account for 2014 have needed to be to reach this target”\ufffd (holding all other accounts the”\ufffd same)?<\/p>\n","protected":false},"excerpt":{"rendered":"
This Tutorial contains excel sheet \u00a0 P10-4 (similar to) \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Opportunity cost. “\ufffd Richardses’ Tree”\ufffd Farm, Inc. has branched into gardening over the years and is now considering adding patio furniture to its product Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216687","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216687","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216687"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216687\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}