*NEW* ACC 225: Week Five Solution

ACC 225

Axia College of University of Phoenix (UoP)

Financial Accounting

Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)

ACC 225 Week 5 Solution

2. CheckPoint: Inventory Systems and Calculating Revenues, Expenses, and Income (Post in the Individual Forum – Due Day 5)

• Resource: Fundamental Accounting Principles, pp. 206, 208, & 209.
• Complete additional modified Exercise in Excel that is posted in the main forum for week 5. Copy and paste the Excel format and complete.
• Complete Quick Study question 5-1 on p. 205, Quick Study question 5-9 on p. 206 and Exercise 5-8 on pp. 208.

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ACC 225: Week Five Solution

ACC 225

Axia College of University of Phoenix (UoP)

Financial Accounting

Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)

ACC 225 Week 5 Solution

Discussion Question 2
• Due Date: Day 4 [Main] forum
• Post your response to the following: Read the BTN5-3 Ethics Challenge on p. 218 of the
text. Discuss the ethics of what Amy is doing. Are there any consequences to her
actions? How does the store account for Amy’s returns?
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CheckPoint: Inventory Systems and Calculating Revenues, Expenses, and Income
• Resource: Fundamental Accounting Principles, pp. 206, 208, and 209.
• Due Date: Day 5 [Individual] forum
• Complete Quick Study question QS 5-8 on p. 206 and Exercises 5-9 and 5-13 on pp.
208-209.
• Post your answers as an attachment.
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FIN 200: Week Five Solution

FIN 200

Axia College of University of Phoenix (UoP)

Introduction to Finance: Harvesting the Money Tree

Fin 200 Week 5 Solution

Assignment: Alternative Financing Plans

Resource: Ch. 6 of Foundations of Financial Management
Due Date: Day 7 [post to the Individual forum]
Complete Problem 14 on p. 184.
Post the assignment as an attachment.

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Lear, Inc. has $800,000 in current assets, $350,000 of which are considered permanent current assets. In addition, the firm has $600,000 invested in fixed assets.

a. Lear wishes to finance all fixed assets and half of its permanent current assets with long-term financing costing 10 percent. Short-term financing currently costs 5 percent. Lear’s earnings before interest and taxes are $200,000. Determine Lear’s earnings after taxes under this financing plan. The tax rate is 30 percent.

b. As an alternative, Lear might wish to finance all fixed assets and permanent current assets plus half of its temporary current assets with long-term financing. The same interest rates apply as in part a. Earnings before interest and taxes will be $200,000. What will be Lear’s earnings after taxes? The tax rate is 30 percent.

c. What are some of the risks and cost considerations associated with each of these alternative financing strategies?

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