The MBA802 Company failed to record (accrue) $9,000,000 of cost related to vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows: Summarized Income Statement Sales $97,000,000 All Cost (incl. Interest & Taxes) $83,000,000 Net Income $14,000,000 Summarized Balance Sheet This Year Last Year Assets: All Current Assets combined $74,000,000 $68,000,000 All Long-Term Assets combined $61,000,000 $59,000,000 Total Assets: $135,000,000 $127,000,000 Liabilities & Stockholders Equity All Current Liabilities combined $61,000,000 $57,000,000 All Long-Term Liabilities combined $35,000,000 $45,000,000 Stockholders Equity $39,000,000 $25,000,000 Total Liabilities & Equity $100,000,000 $80,000,000 Answer the following questions: Current Ratio per Company Statements? Current Ratio if Statements Fixed This Error? Would the Current Ratio Be Better or Worse? ROI per Company Statements? ROI if Statements Fixed This Error? Would the ROI be Better or Worse? ROE per Company Statements? ROE if Statements Fixed This Error? Would the ROE be Better or Worse?

Ashare stock is a small piece of ownership in a company ture or false

Martha is the head of the accounts department in a small manufacturing company. the company follows the accrual-basis method of accounting. it recently purchased raw materials worth $5,000 from its vendors. however, the company paid only $3,000 to its vendors. it plans to pay the remaining amount after three months. considering this information, which entry should martha record in the company’s accounts? a. $5,000 as accounts receivable b. $3,000 as accounts payable c. $2,000 as accounts payable d. $2,000 as accounts receivable

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?