BEC Study Group Q1 2016 - Page 3

Viewing 15 replies - 31 through 45 (of 1,158 total)
  • Author
    Replies
  • #748925
    monikernc
    Participant

    hoki-dokey! thanks!

    FAR 7/25/15 76!
    AUD 10/30/15 93
    BEC 2/27/16 82
    REG 5/23/16 88!
    Ninja Book and MCQ and the forum - all the way!!!
    and a little thing i like to call, time and effort!
    if you want things to change, you have to do something different

    #748926
    Anonymous
    Inactive

    In order to increase production capacity, Gunning Industries is considering replacing an existing production machine with a new technologically improved machine effective January 1, Year 1. The following information is being considered by Gunning Industries.

    The new machine would be purchased for $160,000 in cash. Shipping, installation, and testing would cost an additional $30,000.

    The new machine is expected to increase annual sales by 20,000 units at a sales price of $40 per unit. Incremental operating costs are comprised of $30 per unit in variable costs and total fixed costs of $40,000 per year.

    The investment in the new machine will require an immediate increase in working capital of $35,000.

    Gunning uses straight-line depreciation for financial reporting and tax reporting purposes. The new machine has an estimated useful life of five years and zero salvage value.

    Gunning is subject to a 40 percent corporate income tax rate.

    Gunning uses the net present value method to analyze investments and will employ the following factors and rates.

    Period Present Value of $1 at 10% Present Value of an Ordinary Annuity of $1 at 10%
    1 .909 .909
    2 .826 1.736
    3 .751 2.487
    4 .683 3.170
    5 .621 3.791

    The overall discounted cash flow impact of Gunning Industries' working capital investment for the life of the new production machine would be:

    a. ($13,265) —-> Correct Answer
    b. ($10,680)
    c. ($35,000)
    d. ($7,959)

    Explanation:

    Period CashFlow PV Interest Factor PV CashFlow
    0 35,000 x 1,000 = (35,000) PV of cash outflow (increase in working capital) in Year 1
    5 35,000 x (.621) = 21,735 PV of cash inflow (release of working capital) in Year 5
    (13,265) Overall discounted cash flow impact of working capital investment

    Can anyone explain why they used a PV interest factor of 1,000… im assuming its a typo and its suppose to be 1.000…?

    #748927
    monikernc
    Participant

    ballslife12…i did that problem last night and did not notice the comma. and yes, i think it is a typo.

    FAR 7/25/15 76!
    AUD 10/30/15 93
    BEC 2/27/16 82
    REG 5/23/16 88!
    Ninja Book and MCQ and the forum - all the way!!!
    and a little thing i like to call, time and effort!
    if you want things to change, you have to do something different

    #748928
    ILCPA2014
    Participant

    I am using CPAExcel materials. My goal is to finish the lectures by next week and spend 1 week doing Wiley MCQ's and the rest will be spend doing Ninja MCQ's. I hope to pass BEC first time.

    AUD Passed 78 (4x) Thank you Lord.
    REG Passed 81 (2x) Thank you St Joseph of Cupertino
    FAR Passed 77 (3x) Thank you St Joseph of Cupertino. Thank you Lord.
    BEC TBD
    My CPA journey started in 2013 and it will be finished in April 2016. That's for sure!!
    Ethics 91

    #748929
    Martin
    Participant

    Compare to the other 3 groups, BEC this quarter is dead.

    Through God all things can happen!

    “You never fail until you stop trying.”
    ― Albert Einstein
    When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
    “Just keep swimming, just keep swimming.”

    FAR= 72-84
    Audit= 73-82
    BEC= 74-75
    Reg=77

    #748930
    Larry
    Participant

    Martin, I would join this group as I have passed FAR and REG this year. I can't do BEC to take in January or February because I am getting married on Jan. 16 and then leave to Europe for 2 weeks. I will start studying BEC on February 1 to sit for the exam in the first week of April and then go for AUD in the last week of May. I'll be hanging around to check in and see what's new.

    REG - 82
    FAR - 78
    BEC - 76
    AUD - 8/27/16

    #748931
    payaza2000
    Participant

    Dang you guys are right, BEC group is dead. I wish I was studying for BEC instead I am taking the most interesting subject /sarcasm Audit again.

    FAR 5/6/2015- 84
    REG 8/3/2015 - 87
    AUD 10/25/2015- 69 1/20/2016 -75
    BEC 2/26/2016- 80

    Thank you God

    #748932

    I am studying with Becker and Chapter 1 has knocked me to my knees, I'm so unmotivated to study. What should I do to motivate myself, what works for you guys?

    Becker Review:
    AUD: 75 (Becker Final Review: 83)
    BEC: 76 (Becker Final Review: 74, 80)
    REG: TBD
    FAR: TBD

    #748933
    payaza2000
    Participant

    Coffee.

    FAR 5/6/2015- 84
    REG 8/3/2015 - 87
    AUD 10/25/2015- 69 1/20/2016 -75
    BEC 2/26/2016- 80

    Thank you God

    #748934
    monikernc
    Participant

    i just keep cranking through the mcq's. i like the formulas but my oh my there are too darn many of them

    FAR 7/25/15 76!
    AUD 10/30/15 93
    BEC 2/27/16 82
    REG 5/23/16 88!
    Ninja Book and MCQ and the forum - all the way!!!
    and a little thing i like to call, time and effort!
    if you want things to change, you have to do something different

    #748935
    miamigirl
    Member

    @Help I'm in the same boat, I'm using Becker and I'm having a hard time motivating myself to push past chapter 1. I tentatively scheduled my exam for the beginning of January so I'm getting down to the wire here…

    REG 86
    BEC 77
    FAR 5/31/16
    AUD 7/6/16

    #748936

    @Miamigirl, I've been stuck on chapter 1 for 2 weeks because the formulas are killing me what I'm going to do is move on to the next chapter and come back to these questions. Out of 85 questions theres a chance that only 10 computation questions will pop up so Im going to stop worrying about the nitty gritty stuff and just move on. I suggest you push yourself to do the same or else we'll both be sitting and wasting time on something that might not even be heavily tested.

    Becker Review:
    AUD: 75 (Becker Final Review: 83)
    BEC: 76 (Becker Final Review: 74, 80)
    REG: TBD
    FAR: TBD

    #748937
    MissMorrisa
    Participant

    Just finished chapter 1…formulas/calculations clicked for me (probably I just took FAR and the amount of stuff calculation/journal entries I had to remember from that was ridiculous) BUT understanding the text was another story. True accountant…I understand the numbers. Hopefully I improve during my review.

    ~Work in Progress -JJ

    AUD - 80 (May 2015)
    REG - 79 (August 2015)
    FAR - 85 (November 2015)
    BEC - 84 (February 2016)

    #748938
    miamigirl
    Member

    @Help, I agree with you, I moved on to chapter 2 myself. I'm pretty good at the math/computation part but there are just so many formulas to memorize that I lose patience. So for now I'm going to push through the material and try to give myself enough time for another pass-through before the exam. That should help the nitty-gritty stick, and in the meantime at least I'll know the easier concepts well.

    REG 86
    BEC 77
    FAR 5/31/16
    AUD 7/6/16

    #748939
    monikernc
    Participant

    after more than 20 years working in IT i have to say that the BEC IT section is an insult to IT professionals everywhere. who wrote this fairy tale? and worse – is this why IT auditors rarely have a clue about how things actually work? to pass this exam i have to learn so many things that are just clearly wrong in this information. this is scary for me. and i am not talking about the prevalence of mainframe topics – mainframes are more prevalent today than most people realize and they are great at what they do – i am talking about the bad vocabulary and the process and procedures this material suggests is the relevant body of knowledge. i hope i get an exam that is light on IT because in spite of my experience and expertise i don't have a clue what most of this review material is talking about. this is what is meant when you hear “drink the kool-aid”

    FAR 7/25/15 76!
    AUD 10/30/15 93
    BEC 2/27/16 82
    REG 5/23/16 88!
    Ninja Book and MCQ and the forum - all the way!!!
    and a little thing i like to call, time and effort!
    if you want things to change, you have to do something different

Viewing 15 replies - 31 through 45 (of 1,158 total)
  • The topic ‘BEC Study Group Q1 2016 - Page 3’ is closed to new replies.