Orion Corporation Case
15. What is the net income for the month under variable costing? A) $10,600 B) ($17,000) C) $16,600 D) $6,000
16. What is the net income for the month under absorption costing? A) ($17,000) B) $16,600 C) $6,000 D) $10,600
17. Orion Corporation is preparing a cash budget for the six months beginning January 1. Shown below are the company's expected collection pattern and the budgeted sales for the period. Expected collection pattern: 65% collected in the month of sale 20% collected in the month after sale 10% collected in the second month after sale 4% collected in the third month after sale 1% uncollectible
Budgeted sales: January $160,000 February 185,000 March 190,000 April 170,000 May 200,000 June 180,000 The estimated total cash collections during April from sales and accounts receivables would be: A) $155,900. B) $167,000. C) $171,666. D) $173,400.
18. Avril Company makes collections on sales according to the following …show more content…
Which of the following capital budgeting techniques consider(s) cash flow over the entire life of the project? Internal rate of return Payback A) Yes Yes B) Yes No C) No Yes D) No No
Use the following to answer question 40:
(Ignore income taxes in this problem.) Treads Corporation is considering the replacement of an old machine that is currently being used. The old machine is fully depreciated but can be used by the corporation for five more years. If Treads decides to replace the old machine, Picco Company has offered to purchase the old machine for $60,000. The old machine would have no salvage value in five years. The new machine would be acquired from Hillcrest Industries for $1,000,000 in cash. The new machine has an expected useful life of five years with no salvage value. Due to the increased efficiency of the new machine, estimated annual cash savings of $300,000 would be generated. Treads Corporation uses a discount rate of 12%.
40. The net present value of the project is closest to: A) $171,000. B) $136,400. C) $141,500. D) $560,000.
Use the following to answer questions