Premium Essay

The production department determined that 1,100,000 cans would need to be manufactured each year for the next 5 years if Clark Paints were to begin making their paints cans instead of purchasing them. Considering all relevant costs it was determine that it would cost the company $422,460 annually to make the paints can versus $495,000 they are currently paying to buy the paint can. Clark Paints should accept the proposal to manufacture paint cans because it would result in an annual, before tax, cash savings of $72,540, as well as $32,000 in tax savings as a result of equipment depreciation. The total annual cash flow generated, after tax, is $ 58,351. The initial investment of $200,000, for equipment, would paid back in 3.43 years due to a 13.18% annual rate of return and overall decreased costs. The Net Present Value was calculated at $33,035. The Positive NPV indicates positive future cash flows and present equity. Annual cash flow generated within the 5 years would result in an Internal Rate of Return of 18%. The high Internal Rate of Return indicates an increased rate of future growth as a result of the reduced cost and increased cash flow. Again, this proposal should be accepted because of the significant reduction in cost, the attractive positive Net Present Value and the high Internal Rate of Return.

Calculations Summary:

Annual cash flows over the expected life of the equipment = $ 58,351

Payback period = 3.4 Years

Annual rate of return = 13.18%

Net present value = $ 33,035

Internal rate of return =

Premium Essay

...Funches Math 533 Introduction The department store AJ Davis wants to study the customers that use credit with them. They collected a sample group of 50 people and broke them down to 5 different variables. The 5 different variables are broken down by location, income, household size, years in current location, and credit balance. I plan on creating different graphs and tables to make things easier to study to see the difference in groups. 1st individual variable The pie chart above clearly shows that most/max of the customers to buy from AJ Davis live in the urban location. Even though the rural location is the min of the three, rural and suburban is very close to each other that they both make-up for the rest of the sales. 2nd individual variable The histogram above shows how many people fall into the different income ranges. It seems that the middle class has the lowest amount of people in that category where the lower and upper class mirror each other in the chart above. 3rd individual variable The dotplot above shows how many families fall into the category of how many people are in the household size. It looks as if the families with two people is the largest group out of everyone by a long shot, and households with one, five, six leaving there are equal. 1st pairing of variables The boxplot above shows the connection between the three different locations and the credit balance with AJ Davis. The Rural location seems to be the...

Words: 576 - Pages: 3

Free Essay

...In the following paragraphs I have prepared my results of the mean average income, population of urban customers to total customers, number of years customers have lived in their current homes, and average customers credit balance. The first variable I will discuss is the likelihood the average income is less than $50,000. After looking at the sample of the customers I have discovered that the average annual income falls between $39,680 and $47,800. When it was tested further we have strong evidence that the average income for all customers is less than $50,000. The second variable I will discuss is the whether the percentage of urban customers is more than 40%. Initial testing revealed that the percentage of urban customers falls between 30 and 57%. Further testing revealed that we have strong evidence that the percentage of urban customers is greater than 40%. The third variable to be discussed is whether the average years a customer has lived at their current residence is less than 13 years. The mean years a customer has lived at their current residence is between 11 and 14 years. Based on some further testing there is strong evidence that the average number of years is more than 13 years. The fourth and final variable to be discussed is whether the average credit balance for customers is more than $4,300. The average credit balance for customers is between $3,712 and $4,228. Based on the averages we have strong evidence that the average credit balance is not more than...

Words: 529 - Pages: 3

Premium Essay

...elaborating and supporting your answer. I would recommend the acceptance of Clark Paints’ proposal to purchase the new machine to make the paint cans instead of purchasing them. My decision to accept the proposal is supported by the net present value method. The net present value of this project is $33,035. Our textbook, Managerial Accounting, provides an explanation of this concept: “Under the net present value method, the present value of a project's cash inflows is compared to the present value of the project's cash outflows. The difference between the present values of these cash flows is called the net present value” (Garrison, 2012, p.583). Furthermore, our textbook, states: “Whenever the net present value is zero or greater an investment project is acceptable. Whenever the net present value is negative (the present value of the cash outflows exceeds the present value of the cash inflows), an investment project is not acceptable” (Garrison, 2012, p. 583). Below is a chart taken from our textbook, Managerial Accounting, found on page 583: EXHIBIT 13–1 Net Present Value Analysis of a Proposed Project I included this chart because it clearly explains the rules of when to accept or reject a project. And it further supports my decision to accept the proposal of the new machine because the net present value is a positive value: $33,035. According to this analysis Clark Paints should purchase the new machine. References Garrison, R. (2012). Managerial Accounting (14th ed)....

Words: 275 - Pages: 2

Free Essay

...Week 6 Course Project B) Written below is a sample communication via the use of a memorandum George Fisher has sent out to his employees at Kodak. In this communication message it will give information about the change Kodak is making into the digital world. Memorandum To: All Staff From: Mr. George Fisher, CEO Date: January 12, 2002 Subject: Changes to come For the past ten years we have been designing a strategy to embark on a new change into the digital world, leaving behind the existence of the use of film. It is crucial that we stay above our competitors and continue to change and explore new ways of finding our way in staying competitive in this ever-changing market. That is why we are beginning our conversion from film to digital imaging in the weeks to come. We will launch the changes immediately to in order to get our production started as our estimates are growth show much potential for success. Now, we might face some obstacles along the way in executing the change. Such as the need to invest in research and “release incrementally updated products in a number of different fields” as soon as possible, but we believe this will work. Therefore, we need you on board because you are the essential factor in helping us making this change a success story, and a great moment in Kodak’s history. We might have to cut some of our losses along the way, such as factories and jobs, in order to keep up with our counterparts and competitors, but there is more information...

Words: 867 - Pages: 4

Free Essay

...MATH 533 WEEK 6 COURSE PROJECT PART B To purchase this, Click here http://www.activitymode.com/product/math-533-week-6-course-project-part-b/ Contact us at: SUPPORT@ACTIVITYMODE.COM MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 Week 6 Course Project Part B MATH 533 WEEK 6 COURSE PROJECT PART B To purchase this, Click here http://www.activitymode.com/product/math-533-week-6-course-project-part-b/ ...

Words: 560 - Pages: 3

Premium Essay

...Debra Gordon TERM: Fall Block I 2015 COURSE TITLE: Project and Change Management COURSE NUMBER: IST 7060 TEXT BOOK: Project Management, the Managerial Process. 6thEdition. Author Erik W. Larson & Clifford F. Gray OFFICE HOURS/METHOD OF CONTACT: I do not have an office on campus but can be reached in the evening using blackboard. I also respond to e-mails within 24 hours of receiving them. My e-mail address is: debra.x.gordon@wilmu.edu PREREQUISITE: IST 7000, IST 7020, and IST 7040 1. COURSE DESCRIPTION This course focuses on managing projects within an organizational context, including the processes related to initiating, planning, executing, controlling, reporting, and closing a project. Project integration, scope, time, cost, quality control, and risk management are also explored. Other areas covered in the course are: managing the changes in organizations resulting from the introduction or revision of information systems, identifying project champions, working with user teams, training, documentation, and the change management role of the IS specialist. 2. RATIONALE This course integrates two major related topics, project and change management. As projects evolve and implementation strategies are developed, the role...

Words: 1358 - Pages: 6

Premium Essay

...PROBLEM #1: Convert the following CLASS table into 3NF tables. Examples of Course# are: BUS 297D, BUS 240, etc. Examples of Section# are: 1, 2, 3, etc. Examples of Course-Name are: Database Management; VB Programming Examples of Room# are: BBC 003, BBC 301, etc. Examples of Room-Capacity are: 50, 30, 80, etc. CLASS (Course#, Section#, Course-Name, Room#, Room-Capacity) Step 1: List all Functional Dependencies Course# ( Course-Name Room# ( Room-Capacity Course#, Section# ( Room# Step 2: List all Tables COURSE(Course#, Course-Name) ROOMS(Room#, Room-Capacity) CLASS (Course#, Section#, Room#) PROBLEM #2: Convert the following PARTS table into 3NF tables |Part# |Part |Vendor |Vendor |Unit | | |Description|Name |City |Cost | |1234 |Logic Chip|Fast Chips|Cupertino |10.00 | | | |Smart |Phoenix |8.00 | | | |Chips | | | |5678 |Memory |Fast Chips|Cupertino |3.00 | | | |Quality |Austin |2.00 | | | |Chips | | | | | |Smart |Phoenix |5.00 | | | |Chips | | | SOLUTION Step 1: Identify all functional dependencies Part# ( Part-Description Vendor-Name ( Vendor-City Part#, Vendor-Name ( Unit-Cost Step 2: Re-write the functional dependencies as tables PARTS (Part#, Part-Description) VENDORS (Vendor-Name...

Words: 1676 - Pages: 7

Premium Essay

...ACCT 212 Course Project (DEVRY) For more course tutorials visit www.tutorialrank.com Tutorial Purchased: 3 Times, Rating: A (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners' equity. (10 points) (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points) and (2) identify the three major parts of this statement. (10 points) (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) (TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are...

Words: 2078 - Pages: 9

Premium Essay

...ACCT 212 Course Project (Devry) For more course tutorials visit www.acct212.com (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners' equity. (10 points) (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points) and (2) identify the three major parts of this statement. (10 points) (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) (TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $1...

Words: 1966 - Pages: 8

Premium Essay

...ACCT 212 Course Project (Devry) For more course tutorials visit www.acct212.com (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners' equity. (10 points) (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points) and (2) identify the three major parts of this statement. (10 points) (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) (TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $1...

Words: 1966 - Pages: 8

Premium Essay

...ACCT 212 Course Project (Devry) FOR MORE CLASSES VISIT www.acct212papers.com (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners' equity. (10 points) (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points) and (2) identify the three major parts of this statement. (10 points) (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) (TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $1...

Words: 1951 - Pages: 8

Premium Essay

...ACCT 212 Course Project ¬For more classes visits www.snaptutorial.com (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners' equity. (10 points) (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points) and (2) identify the three major parts of this statement. (10 points) (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) (TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $1,350 of...

Words: 1946 - Pages: 8

Premium Essay

... Activity A m b Immediate Predecessors A 4 8 12 --- B 4 10 13 A C 7 14 18 B D 9 16 20 B E 6 9 12 B F 2 4 6 D,E G 4 7 13 C,F H 3 5 7 G I 2 3 4 G,H A- Determine the expected times and variances for each activity B- Construct a project network for this problem C- Determine the EST, EFT, LST, LFT and slack for each activity. Also determine the critical path and project completion time. D- What is the probability that the project will be finished in less than 57 days? E- What is the probability that the project will need at least 50 days? Activity | Early Start | Early Finish | Late Start | Late Finish | Slack | A | 0 | 8 | 0 | 8 | 0 | B | 8 | 17.5 | 8 | 17.5 | 0 | C | 17.5 | 31 | 23.5 | 37 | 6 | D | 17.5 | 33 | 17.5 | 33 | 0 | E | 17.5 | 26.5 | 24 | 33 | 6.5 | F | 33 | 37 | 33 | 37 | 0 | G | 37 | 44.5 | 37 | 44.5 | 0 | H | 44.5 | 49.5 | 44.5 | 49.5 | 0 | I | 49.5 | 52.5 | 49.5 | 52.5 | 0 | | Project | 52.5 | | | | Variance | Critical Variance | 1.77777778 | 1.78 | 2.25 | 2.25 | 3.36111111 | | 3.36111111 | 3.36 | 1 | | 0.44444444 | 0.44 | 2.25 | 2.25 | 0.44444444 | 0.44 | 0.11111111 | 0.11 | Project | 10.64 | Std.dev | 3.26 | Probabilities | | z | p | <57 | 1,37963555 | 0,9162 | = 50 | -0,7664642 | 0,2206 | 22. The expected project completion time for the construction of a pleasure yacht is 21 months and the project variance is 6. What...

Words: 1200 - Pages: 5

Premium Essay

...com ACCT 212 Entire Class /Devry ACCT 212 Course Discussion Questions ACCT 212 Week 1 DQ 1 Financial Statements ACCT 212 Week 1 DQ 2 Prepaid Expenses vs. Unearned Revenue ACCT 212 Week 2 DQ 1 Accrual vs. Cash Accounting ACCT 212 Week 2 DQ 2 ACCT 212 Week 3 DQ 1 Ethical Business Decisions ACCT 212 Week 3 DQ 2 Trade Credit – Accounts Payable ACCT 212 Week 4 DQ 1 Inventory Management ACCT 212 Week 4 DQ 2 LIFO ACCT 212 Week 5 DQ 1 Non-current Assets and Related Liabilities ACCT 212 Week 5 DQ 2 Raising Capital (Cash) ACCT 212 Week 6 DQ 1 Stockholders Equity ACCT 212 Week 6 DQ 2 Net Income vs. Net Operating Cash ACCT 212 Week 7 DQ 1 Financial Statement Analysis ACCT 212 Week 7 DQ 2 ACCT 212 Devry Course Project This course has two course projects due. The first, Course Project 1, reinforces the basic principles of accounting and application of the accounting information system. It is completed in two parts. The second, Course Project 2, is an opportunity to show the ability to analyze financial statements to arrive at conclusions based upon the analysis. Course Project 1 – Overview and Guidelines | Course Project 2 – Overview and Guidelines Course Project 1 – Overview and Guidelines Course Project 1 consists of two parts, A and B, respectively. There are 10 requirements for you to complete in this exercise, Part A has 1-3 and Part B has 4-10. Part A is due at the end of Week 3. Part B is due at the end of Week 5. See Syllabus/”Due Dates...

Words: 2290 - Pages: 10

Premium Essay

...ACCT 212 Course Project ¬For more classes visits www.snaptutorial.com (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners' equity. (10 points) (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points) and (2) identify the three major parts of this statement. (10 points) (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) (TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $1,350 of office...

Words: 1840 - Pages: 8