Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134067254
Author: Braun
Publisher: PEARSON
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Chapter 15, Problem 15.34BE
Sustainability and capital investments (Learning Objective 1)
Jaren Industries is evaluating investing in solar panels to provide some of the electrical needs of its main office building in Phoenix, Arizona. The solar panel project would cost $500,000 and would provide cost savings in its utility bills of $70,000 per year. It is anticipated that the solar panels would have a life of 20 years and would have no residual value.
Requirements
- 1. Calculate the payback period in years for the solar panel project.
- 2. If the company uses a discount rate of 8%, what is the
net present value of this project? - 3. If the company has a rule that no projects will be undertaken that have a payback period of more than five years, would this investment be accepted? If not, what arguments could managers make to get approval for the solar panel project?
- 4. What would you do if you were in charge of approving capital investment proposals?
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14. A company receives a bill for electricity to be paid next month. What is the journal entry today?A. Debit Utilities Expense; Credit Accounts PayableB. Debit Cash; Credit Utilities ExpenseC. Debit Accounts Payable; Credit Utilities ExpenseD. No entry until payment is made
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14. A company receives a bill for electricity to be paid next month. What is the journal entry today?A. Debit Utilities Expense; Credit Accounts PayableB. Debit Cash; Credit Utilities ExpenseC. Debit Accounts Payable; Credit Utilities ExpenseD. No entry until payment is made help
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Operating income for profit center
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The centralized Data Analytics Department of Drewlink Company has expenses of $340,000. The department has provided a total of 8,000 hours of service for the period. The Retail
Division has used 2,000 hours of data analytics service during the period, and the Commercial Division has used 6,000 hours of data analytics service. Additional data for the two
divisions is following below:
Retail Division Commercial Division
Sales
Cost of goods sold
$2,550,000
1,450,000
Selling expenses
230,000
$1,700,000
750,000
170,000
Determine the divisional operating income for the Retail Division and the Commercial Division. Do not round interim calculations.
Drewlink Company
Divisional Operating income
Line Item Description
Sales
Cost of goods sold
Selling expenses
Support department allocations
Operating income
Retail Division Commercial Division
2,550,000
1,450,000
$
1,700,000
750,000
10000
785,000
525,000
Check My Work 1 more Check My Work uses…
Chapter 15 Solutions
Managerial Accounting (5th Edition)
Ch. 15 - (Learning Objective 1) Which of the following is...Ch. 15 - (Learning Objective 1) Which of the following...Ch. 15 - Prob. 3QCCh. 15 - Prob. 4QCCh. 15 - (Learning Objective 2) What is the current status...Ch. 15 - (Learning Objective 2) Which of the following...Ch. 15 - Prob. 7QCCh. 15 - Prob. 8QCCh. 15 - Prob. 9QCCh. 15 - Prob. 10QC
Ch. 15 - Prob. 15.1SECh. 15 - Identify aspects within each G4 category on a GRI...Ch. 15 - Identify aspects within each G4 Social subcategory...Ch. 15 - Prob. 15.4SECh. 15 - Prob. 15.5SECh. 15 - Prob. 15.6SECh. 15 - Define key sustainability terms (Learning...Ch. 15 - Prob. 15.8SECh. 15 - Prob. 15.9AECh. 15 - Prob. 15.10AECh. 15 - Prob. 15.11AECh. 15 - Prob. 15.12AECh. 15 - Prob. 15.13AECh. 15 - Sustainability and cost behavior (Learning...Ch. 15 - Prob. 15.15AECh. 15 - Prob. 15.16AECh. 15 - Sustainability and budgeting (Learning Objective...Ch. 15 - Prob. 15.18AECh. 15 - Prob. 15.19AECh. 15 - Sustainability and capital investments (Learning...Ch. 15 - Sustainability and the statement of cash flows...Ch. 15 - Prob. 15.22AECh. 15 - Prob. 15.23BECh. 15 - Prob. 15.24BECh. 15 - Prob. 15.25BECh. 15 - Prob. 15.26BECh. 15 - Sustainability and process costing (Learning...Ch. 15 - Prob. 15.28BECh. 15 - Sustainability and CVP concepts (Learning...Ch. 15 - Prob. 15.30BECh. 15 - Prob. 15.31BECh. 15 - Prob. 15.32BECh. 15 - Prob. 15.33BECh. 15 - Sustainability and capital investments (Learning...Ch. 15 - Prob. 15.35BECh. 15 - Prob. 15.36BECh. 15 - Prob. 15.37APCh. 15 - Prob. 15.38APCh. 15 - Prob. 15.39BPCh. 15 - Prob. 15.40BPCh. 15 - Each year for the past six years, Caesars...Ch. 15 - Discussion Questions 1. Pressure to become more...Ch. 15 - Corporate Sustainability Reports Note: In the...Ch. 15 - Sustainability and investment choices...Ch. 15 - Ethics of internal sustainability reporting...Ch. 15 - FirstEnergy and its sustainability report...
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