Call systems company, a telephone service and supply company, has just completed its fourth year of operations. the direct write-off method of recording bad debt expense has been used during the entire period. because of substantial increases in sales volume and the amount of uncollectible accounts, the company is considering changing to the allowance method. information is requested as to the effect that an annual provision of 1% of sales would have had on the amount of bad debt expense reported for each of the past four years. it is also considered desirable to know what the balance of allowance for doubtful accounts would have been at the end of each year. the following data have been obtained from the accounts: yearsalesuncollectible accounts written offyears of origin of accounts receivablewritten off as uncollectible(1st)(2nd)(3rd)(4th)1s t $ 900,000 $ 4,500 $4,500 2nd 1,250,000 9,600 3,000 $6,600 3rd 1,500,000 12,800 1,000 3,700 $8,100 4th 2,200,000 16,550 1,500 4,300 $10,750required: 1. assemble the desired data to prepare a schedule of bad debt expense. enter decreases as negative numbers using a minus sign.. experience during the first four years of operations indicated that the receivables were either collected within two years or had to be written off as uncollectible. does the estimate of 1% of sales appear to be reasonably close to the actual experience with uncollectible accounts originating during the first two years? call systems companyschedule of bad debt expenseyearexpense actually reportedexpense based on estimateincrease (decrease) in amount of expensebalance of allowance account, end of year1st2nd3rd4th

Beta coefficients and the capital asset pricing model personal finance problem katherine wilson is wondering how much risk she must undertake to generate an acceptable return on her porfolio. the risk-free return currently is 4%. the return on the overall stock market is 14%. use the capm to calculate how high the beta coefficient of katherine's portfolio would have to be to achieve a portfolio return of 16%.

Assume that the governance committee states that all projects costing more than $70,000 must be reviewed and approved by the chief information officer and the it senior leadership team (slt). at this point, the cio has the responsibility to ensure that management processes observe the governance rules. for example, the project team might present the proposed project in an slt meeting for a vote of approval. what does this scenario illustrate about organizational structure?

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)