Q. Acme Manufacturing is adecentralized corporation. Divisions are treated as in

Q. Acme Manufacturing is adecentralized corporation. Divisions are treated as investmentcenters. In recent years Acme has been running about 11% ROA forthe corporation as a whole and has a cost of capital of 8%. One oftheir most profitable divisions is Walker Products which last yearhad ROA of 20% ($1600000 operating income on assets of$8000000). Walkerhas an opportunity to expand one of its plantsto produce a promising new product. The expansion will cost twomillion dollars and is expected to increase operating earnings to$1900000. What factors should Walkers manager and hersupervisor the VP of operations consider in deciding whether togo forward with the expansion?b. Connor Company a manufacturer of small tools has a newbookkeeper.During a recent month the bookkeeper made the following entriesamongothers. For each state whether the entry is correct or incorrectunder US GAAPand explain briefly. If incorrect specify the correct entry.