Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 16, Problem 16.39C
Capital budget expenditure analysis: Internet assignment Annual reports provide significant information about an organization’s capital budget and capital budgeting process. Campbell Soup Company provides financial reports for several years at campbellsoup.com {Our Company ? Investor Center ? Financial Information ? Annual Reports'). This exercise requires you to use Campbell’s consolidated statements of cash flows, management’s discussion and analysis of financial condition and results of operations, and notes to the consolidated financial statements for the most recent year presented.
Required:
Using Campbell’s most recent annual report, answer the following:
- From Campbell’s consolidated statements of cash flows:
- Identify the amount of cash used for capital expenditures from the Investing Activities section. How much cash was provided from the sale of capital assets?
- How do these amounts compare to the previous two years? Comment on the trend relative to the general cash flow position for each year.
- Read Campbell’s discussion of the “Business,” and highlight the information provided about capital expenditures reported in the current year and any plans identified for next year.
- Read Campbell’s discussion of the “Risk Factors.” How may the company be adversely impacted by failure to execute acquisitions and divestitures successfully?
- Read Campbell’s management’s discussion and analysis of financial condition and results of operations.
- In the Liquidity' and Capital Resources section, how were investing cash flows used or provided for capital expenditures?
- In the Significant Accounting Estimates section, how are fixed assets reviewed for impairment? What role does management judgment play?
- From Campbell’s notes to the consolidated financial statements, determine the following:
- How does Campbell’s value and depreciate property, plant, and equipment?
- If applicable, describe Campbell’s acquisitions for the year.
- If applicable, describe Campbell’s divestitures for the year.
- How were Campbell’s capital expenditures distributed among its business segments?
- From Campbell’s selected financial data, do the following:
- For the five years presented, calculate the ratio of capital expenditures to net sales.
- For the five years presented, calculate the ratio of net plant assets to total assets.
- Comment on the trends.
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QUESTION 2
In the late June of each year, BOS Global Ltd prepares a cash budget for the next 6 months. The entity’s management wishes to prepare a cash budget in order to assess its likely requirements for short-term funds.
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Sales Revenues (Actual and Estimates) [GHS]
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Approximately 25 per cent of sales are for cash and 75 per cent are on credit. Past experience has shown that two-third of all credit sales are collected in the month immediately following the month…
Tune Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2024 and budgeted balance sheet at April 30, 2024. The March 31, 2024, balance sheet follows:
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April dividends of $6,000 were declared and paid.
b.
April capital expenditures of $16,200 budgeted for cash purchase of equipment.
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April depreciation expense, $500.
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Cost of goods sold, 45% of sales.
e.
Desired ending inventory for April is $22,800.
f.
April selling and administrative expenses include salaries of
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g.
Additional April selling and administrative expenses also include miscellaneous expenses of 15% of sales, all paid in April.
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Chapter 16 Solutions
Accounting: What the Numbers Mean
Ch. 16 - Prob. 16.1MECh. 16 - Prob. 16.2MECh. 16 - Mini-Exercise 16.3 LO 2. 3 The make or buy...Ch. 16 - Prob. 16.4MECh. 16 - Mini-Exercise 16.5 LO 7 Net present ratio and IRR...Ch. 16 - Mini-Exercise 16.6 LO 9. 10 Payback period and...Ch. 16 - Exercise 16.7 LO 1 Application of cost terminology...Ch. 16 - Prob. 16.8ECh. 16 - Exercise 16.9 LO 2, 3 Sell or process further?...Ch. 16 - Exercise 16.10 LO 2. 3 Sell or process further?...
Ch. 16 - Exercise 16.11
LO 2 , 3
Accept special sales...Ch. 16 - Exercise 16.12
LO 2, 3
Accept special sales order?...Ch. 16 - Prob. 16.13ECh. 16 - Exercise 16.14
LO 2, 3
Target costing Rainbow...Ch. 16 - Exercise 16.15
LO 2. 3
The make or buy decision...Ch. 16 - Exercise 16.16
LO 2, 3
The make or buy decision...Ch. 16 - Prob. 16.17ECh. 16 - Prob. 16.18ECh. 16 - Prob. 16.19ECh. 16 - Prob. 16.20ECh. 16 - Prob. 16.21ECh. 16 - Prob. 16.22ECh. 16 - Prob. 16.23ECh. 16 - Prob. 16.24ECh. 16 - Prob. 16.25ECh. 16 - Prob. 16.26ECh. 16 - Prob. 16.27PCh. 16 - Problem 16.28 LO 2, 3 Relevant costs, special...Ch. 16 - Problem 16.29 LO 2, 3 Continue or discontinue a...Ch. 16 - Prob. 16.30PCh. 16 - Prob. 16.31PCh. 16 - Prob. 16.32PCh. 16 - Prob. 16.33PCh. 16 - Prob. 16.34PCh. 16 - Prob. 16.35PCh. 16 - Prob. 16.36PCh. 16 - Prob. 16.38CCh. 16 - Capital budget expenditure analysis: Internet...
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