tailieunhanh - Lecture Accounting (6th edition): Chapter 24 - Kimmel, Weygandt, Kieso

Chapter 24 - Planning for capital investments. In this chapter students will be able to: Describe capital budgeting inputs and apply the cash payback technique, use the net present value method, identify capital budgeting challenges and refinements, use the internal rate of return method, use the annual rate of return method. | Planning for Capital Investments Kimmel ● Weygandt ● Kieso Accounting, Sixth Edition 24 CHAPTER OUTLINE Describe capital budgeting inputs and apply the cash payback technique. 1 LEARNING OBJECTIVES Use the net present value method. 2 Identify capital budgeting challenges and refinements. 3 Use the internal rate of return method. 4 Use the annual rate of return method. 5 Corporate capital budget authorization process: Proposals for projects are requested from each department. Proposals are screened by a capital budget committee. Officers determine which projects are worthy of funding. Board of directors approves capital budget. LO 1 LEARNING OBJECTIVE Describe capital budgeting inputs and apply the cash payback technique. 1 Many companies follow a carefully prescribed process in capital budgeting. ILLUSTRATION 24-1 Corporate capital budget authorization process Authorization Process LO 1 For purposes of capital budgeting, estimated cash inflows and outflows are the preferred inputs. Why? Ultimately, the value of all financial investments is determined by the value of cash flows received and paid. CASH FLOW INFORMATION LO 1 Typical cash flows relating to capital budgeting decisions. Cash Outflows Initial investment Repairs and maintenance Increased operating costs Overhaul of equipment Cash Inflows Sale of old equipment Increased cash received from customers Reduced cash outflows related to operating costs Salvage value of equipment ILLUSTRATION 24-2 CASH FLOW INFORMATION LO 1 Capital budgeting decisions depend on: Availability of funds. Relationships among proposed projects. Company’s basic decision-making approach. Risk associated with a particular project. CASH FLOW INFORMATION LO 1 Stewart Shipping Company is considering an investment of $130,000 in new equipment. ILLUSTRATION 24-3 Investment information for Stewart Shipping example ILLUSTRATIVE DATA LO 1 Cash payback technique identifies the time period required to recover the cost of the capital investment from | Planning for Capital Investments Kimmel ● Weygandt ● Kieso Accounting, Sixth Edition 24 CHAPTER OUTLINE Describe capital budgeting inputs and apply the cash payback technique. 1 LEARNING OBJECTIVES Use the net present value method. 2 Identify capital budgeting challenges and refinements. 3 Use the internal rate of return method. 4 Use the annual rate of return method. 5 Corporate capital budget authorization process: Proposals for projects are requested from each department. Proposals are screened by a capital budget committee. Officers determine which projects are worthy of funding. Board of directors approves capital budget. LO 1 LEARNING OBJECTIVE Describe capital budgeting inputs and apply the cash payback technique. 1 Many companies follow a carefully prescribed process in capital budgeting. ILLUSTRATION 24-1 Corporate capital budget authorization process Authorization Process LO 1 For purposes of capital budgeting, estimated cash inflows and outflows are the preferred inputs. .

• Kế toán - Kiểm toán
• Lecture Accounting
• Financial statements
• Business organization
• Accounting information
• Capital investments
• Cash flow information
• Financial accounting
• Lecture Financial accounting
• Management accounting
• Accounting standards
• Accounting equation
• Intermediate accounting
• Lecture Intermediate accounting
• Accounting process
• Accounting processing cycle
• Managerial accounting
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Merchandising operations
• Lecture Accounting 1
• Accounting for main transactions
• Accounting for purchases
• Accounting for sales
• Accounting for expenses
• Principle of accounting
• Lecture Principle of accounting
• The basic accounting equation
• Transaction analysis in accounting equation
• Calculate the accounting equation
• Lecture Advanced financial accounting
• Bài giảng Kế toán tài chính nâng cao
• Advanced financial accounting
• Accounting policies
• Accounting estimate
• Retrospective application
• Changes in accounting estimates
• Retrospective restatements
• Accounting assumptions
• Lecture Management accounting
• Bài giảng Kế toán quản trị
• Nature of management accounting
• Component of accounting system
• Financial system
• Lecture Accounting and financial system
• Ledger accounting
• Trial balance
• Completing the accounting cycle
• Accounting cycle
• Accounting worksheet
• Classified balance sheet
• Accounting changes
• Error corrections
• Accounting choices
• Accounting for business
• Lecture Accounting for business
• Accounting entity
• Classification of assets
• Accounting equation transactions