Question: Table Forma Insert Edit File Ch 16 P16-6A Numbers T Media Comm 86 % V Shape Text Table Chart Insert Zoom View P16-6A Date: Course: Name: Instructor P16-6A Prepare The Operating Activities Section- Direct Method Zumbrunn Company’s Income Statement Contained The Condensed Information Below ZUMBRUNN COMPANY Income Statement For The Year Ended December …

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Get college assignment help at uniessay writers Table Forma Insert Edit File Ch 16 P16-6A Numbers T Media Comm 86 % v Shape Text Table Chart Insert Zoom View P16-6A Date: Course: Name: Instructor P16-6A Prepare the operating activities section- direct method Zumbrunn Company’s income statement contained the condensed information below ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2014 S 970,000 Service revenue S 624,00 Operating expenses, excluding depreciation Depreciation expense Loss on disposal of equipment 60,000 16,000 700,000 270,000 Income before income taxes 40.000 Income tax expense S 230,000 Net income Zumbrunn’s balance sheet contained the comparative data at December 31, shown below 2013 $65,000 28,000 2014 $75,000 Accounts recelvable 46,000 Accounts payable Income taxes payable Accounts payable pertain to operating expenses 11,000 7,000 Instructions Prepare the operating activities section of the statement of cash flows using the direct method. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “. ZUMBRUNN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities Cash receipts from customers Less cash payments: For operating expenses For income taxes Value (1) Value (2) Value (3) Net cash provided by operating activities (1) Computation of cash receipts from.customers Service revenue Deduct: Increase in accounts receivable Cash receipts from customers Value Value Computation of cash payments for operating expenses (2) 400 25 7,000 Accounts payable Income taxes payable ccounts payable pertain to operating expenses. 11,000 nstructions Prepare the operating activities section of the statement of cash flows using the direct method. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a ZUMBRUNN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities Cash receipts from customers Less cash payments: For operating expenses (1) Value Value (2) Value (3) For income taxes Net cash provided by operating activities Computation of cash receipts from customers (1) Service revenue Value Deduct: Increase in accounts receivable Cash receipts from customers Value ? Computation of cash payments for operating expenses (2) Operating expenses per income statement Deduct: Increase in accounts payable Cash payments for operating expenses Value Value ? (3) Computation of cash payments for income taxes Income tax expense per income statement Deduct: increase in income taxes payable Value Value Cash payments for income taxes 7 400 N 25 31 LO

Question: T The Beginning Of The Year, Palermo Brothers, In. PurcheBed A New Plastic Water Bottle Making Machine At A Cost Of $56,000. The Estimated Residuel Value Was $6.000. Assume That The Estimated Useful Life Was Four Years, And The Estimated Productive Life Of The Machine Was 500,000 Units. Actual Annual Production Was As Followa: 110.000 2 102 500 Required: …

t the beginning of the year, Palermo Brothers, In. purcheBed a new plastic water bottle making machine at a cost of $56,000. The estimated residuel value was $6.000. Assume that the estimated useful life was four years, and the estimated productive life of the machine was 500,000 units. Actual annual production was as followa: 110.000 2 102 500 Required: .Conplete a separate deprecialion schedule for each of the allemalive methods Straighl-line n Year Expense Depreciation Book Value Al acquisilion 4 Units-of-production. Depreciation Expense Accumulated Depreciation Book Value Net Year At acquisitinn 2 Double-declining-balance. c. Double-declining-balance Net Depreciation Expense Accumulated Year Depreciation Book Value At acquisition 1 2 3 4

Question: Pter 7 Inventories A Perpetual Inventory Using LIFO Beginning Inventory, Purchases, And Sales Data For Prepaid Cell Phones For EX 7-5 Ance 80 Sales As Follows: Purchases Aug. 12 360 Units At $45 600 Units Inventory Aug. 10 775 Units At $44 14 415 Units 600 Units At $48 Aug. 1 20 31 500 Units $ Assuming That The Perpetual Inventory System Is Used, Costing …

pter 7 Inventories A Perpetual inventory using LIFO Beginning inventory, purchases, and sales data for prepaid cell phones for EX 7-5 ance 80 Sales as follows: Purchases Aug. 12 360 units at $45 600 units Inventory Aug. 10 775 units at $44 14 415 units 600 units at $48 Aug. 1 20 31 500 units $ Assuming that the perpetual inventory system is used, costing by the LIFO determine the cost of merchandise sold for each sale and the inventory balan each sale, presenting the data in the form illustrated in Exhibit 4. b. Based upon the preceding data, would you expect the inventory to be higher using the first-in, first-out method? a. EX 7-6 Perpetual inventory using FIFO Assume that the business in Exercise 7-5 maintains a perpetual inventory system, co the first-in, first-out method, etermine the inventory balance after en COct EX 7-6 Perpetual inventory using FIFO Assume that the business in Exercise 7-5 maintains a perpetual inventory system, costing the first-in, first-out method. Determine the cost of merchandise sold for each sale andt inventory balance after each sale, presenting the data in the form illustrated in Exhibe 0B11 e,

Question: Based On The Following Information, Compute Cash Flows From Financing Activities. (Input The Amount As Positive Value.) Purchase Of Short-term Investments Dividends Paid Interest Paid Additional Short-term Borrowing From Bank $580 880 430 980 Financing Activities Cash Used In Provided By

Based on the following information, compute cash flows from financing activities. (Input the amount as positive value.) Purchase of short-term investments Dividends paid Interest paid Additional short-term borrowing from bank $580 880 430 980 financing activities Cash used in provided by

Question: Problem 10-04A (Video) At The Beginning Of 2018, Sheffield Company Acquired Equipment Costing $106,600. It Was Estimated That This Equipment Would Have A Useful Life Of 6 Years And A Salvage Value Of $10,660 At That Time. The Straight-line Method Of Depreciation Was Considered The Most Appropriate To Use With This Type Of Equipment. Depreciation Is …

Problem 10-04A (Video) At the beginning of 2018, Sheffield Company acquired equipment costing $106,600. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $10,660 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year. During 2020 (the third year of the equipment’s life), the company’s engineers reconsidered their expectations, and estimated that the equipment’s useful life would probably be 7 years (in total) instead of 6 years. The estimated salvage value was not changed at that time. However, during 2023 the estimated salvage value was reduced to $5,000. Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table. Depreciation Expense Accumulated Year Depreciation 2018 2019 2020 2021 2022 2023 2024 Open Show Work Click if you would like to Show Work for this question:

Question: Unit Cost Units 8 Inventory, December 31, Prior Year For The Current Year: 7,600 Purchase, March 5 19,600 6 Purchase, September 19 Sale ($29 Each) Sale ($31 Each) Operating Expenses (excluding Income Tax Expense) 10,600 8,600 2 16,600 $406,000 Value: Required Information 12.00 Points Required: 1. Prepare A Separate Income Statement Through Pretax Income …

Unit Cost Units 8 Inventory, December 31, prior year For the current year: 7,600 Purchase, March 5 19,600 6 Purchase, September 19 Sale ($29 each) Sale ($31 each) Operating expenses (excluding income tax expense) 10,600 8,600 2 16,600 $406,000 value: Required information 12.00 points Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Loss amounts should be indicated with a minus sign.) BECK INC. Income Statement For the Year Ended December 31, current year Case A Case B FIFO LIFO Sales revenue $ 764,000 $764,000 Cost of goods sold: S 60,800 60,800 Beginning inventory Purchases 138,800 138,800 Goods available for sale 199,600 199,600 Ending inventory Cost of goods sold Gross profit Operating expenses Pretax income/loss

Question: Question Help Granger Company Pays Its Employees Every Other Friday December 31, 2017, Was A Sunday. On Friday, January 5, 2018, Granger Paid Wages Of $147.000, Which Covered The 14-day Period Fom December 20, 2017, Through January 2, 2018 Wages Were Eamed Evenly Across All Days, Indluding Saturdays And Sundays, Emplovee Income Taxes Withheld For This …

Question Help Granger Company pays its employees every other Friday December 31, 2017, was a Sunday. On Friday, January 5, 2018, Granger paid wages of $147.000, which covered the 14-day period fom December 20, 2017, through January 2, 2018 Wages were eamed evenly across all days, indluding Saturdays and Sundays, Emplovee income taxes withheld for this payroll period totaled $18 235, wh withheld was $16.450. (lgnore the employer payrol taxes in this exercise) Prepare the entry to acorue the company’s wages and payroll taxes at December 31, 2017 (Assume the $147,000 in wags W amount of the payroll. Record debits first, then credits. Exclude explanations from any joumal entries) the gross Journal Entry Accounts Date Debit Credit

Question: Chapter 14: Non-Current Liabilities (Bonds, Notes And Mortgages Payablef 2 Grider Industries, Inc. Issued $6,000,000 Of 8% Bonds On January 1, 2014 And Received Cash Totaling. The Bonds Pay Interest Semiannually On June 30 And December 31. The Maturity Date On These Bonds Is December 31, 2016. The Firm Uses The Effective-interest Method Of Amortizing …

Chapter 14: Non-Current liabilities (Bonds, Notes and Mortgages payablef 2 Grider Industries, Inc. issued $6,000,000 of 8% bonds on January 1, 2014 and received cash totaling. The bonds pay interest semiannually on June 30 and December 31. The maturity date on these bonds is December 31, 2016. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate (Market) of 10% Requirements 1. Determine the present value of the bonds? 2. Do the bonds are issued at discount or premium? How much the amount? 3. Prepare a Schedule of Note Discount (Premium) Amortization under the effective interest method. (Round to whole dollars.) Cash Interest % )- effective Interest Carrying amount of Bonds Date Jan. 1″ 2011 End of period 1 End of period 2 End of period 3 End of period 4 End of period 5 nd of period 6 4 Record the journal entry to iSsue the bonds on Jan. 2014 lia d S ian he re l 5. Record the journal entry to accrue the interest expense on June 30 2014 6. Record the Journal entry to pay June 30 2014 interest 238

Question: Lavage Rapide Is A Canadian Company That Owns And Operates A Large Automatic Car Wash Facility Near Montreal. The Following Table Provides Data Concerning The Company’s Costs: Fixed Cost Cost Per Per Month Car Washed Cleaning Supplies Electricity Maintenance $0.40 $1,500 So.08 S0.25 Wages And Salaries Depreciation $4,500 $8,100 $1,800 $0.30 Rent Administrative…

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance $0.40 $1,500 so.08 S0.25 Wages and salaries Depreciation $4,500 $8,100 $1,800 $0.30 Rent Administrative expenses $1,400 $0.03 For example, electricity costs are $1,500 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 per car washed. The company actually washed 8,500 cars in August. Required: Calculate the company’s activity variances for August. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

Question: Lavage Rapide Is A Canadian Company That Owns And Operates A Large Automatic Car Wash Facility Near Montreal The Following Table Provides Data Concerning The Company’s Costs Fixed Cost Cost Per Per Month Car Washed Cleaning Aupplien Electricity Maintenance $0.80 $1,400 So.07 $0.20 Wages And Salaries Depreciation $4,600 $8,100 $2,000 $0.40 Rent Dninistrative …

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal The following table provides data concerning the company’s costs Fixed Cost Cost per per Month Car Washed cleaning aupplien Electricity Maintenance $0.80 $1,400 so.07 $0.20 Wages and salaries Depreciation $4,600 $8,100 $2,000 $0.40 Rent dninistrative $1,300 $0.02 expenses For example, electricity costs are $1,400 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars vashed 8,400 $52,730 Всveрие Expensesi cleaning supplies Electricity 7,140 1,951 Maintenance 1,900 8,280 8,100 2,200 Wagea and nalaries Depreciation Rent Administrative 1,366 expenses Total expense 30,937 Net operating income $21,793 Required: Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Flexible Budget Planning Budget Actual Results 8.400 Cars washed $ 52,730 Revenue Expenses: Cleaning supplies Electricity Maintenance 7,140 1,951 1,900 Wages and salaries Depreciation 8,280 8,100 2,200 Rent Administrative expenses Total expense Net operating income 1,366 30,937 $21,793

Question: Via Gelato Is A Popular Neighborhood Gelato Shop. The Company Has Provided The Following Cost Formulas And Actual Results For The Month Of June: ETTT Fixed Element Variable Element Actual Total Per Liter $23.00 $ 5.75 For June Per Month $140,540 $37,030 $21,800 $ 11,600 Revenue Raw Materials 6,700 2,730 $3,700 2,450 $2.50 $ 1.30 Wages Utilities 3,700 …

Get college assignment help at uniessay writers Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: ETTT Fixed Element Variable Element Actual Total per Liter $23.00 $ 5.75 for June per Month $140,540 $37,030 $21,800 $ 11,600 Revenue Raw materials 6,700 2,730 $3,700 2,450 $2.50 $ 1.30 Wages Utilities 3,700 2,450 9,390 Rent S Insurance $ 1.45 Miscellaneous 760 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $6,700 plus $2.50 per liter of gelato sold and the actual wages for June were $21,800. Via Gelato expected to sell 6,100 liters in June, but actually sold 6,300 liters Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero varlance). Input all amounts as positive values.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income

Question: Ch. 10 Assignment Caloulator Print Item Book Wage And Tax Statement Data On Employer FICA Tax Ehrlich Co. Began Business On January 2. Salaries Were Paid To Employees On The Last Day Of Each Month, And Social Security Tax. Medicare Tax And Federal Income Tax Were Wthheld In The Required Amounts. An Employee Who Is Hired In The Middle Of The Month Receives …

Ch. 10 Assignment Caloulator Print Item Book Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2. Salaries were paid to employees on the last day of each month, and social security tax. Medicare tax and federal income tax were wthheld in the required amounts. An employee who is hired in the middle of the month receives half the monthly salary for that month. All reguired payroll tax reports were filed, and the corect amount of payroll taxes was remitted by the company for the calandar year. Early in the following year, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to emplovees and for filing with the Social Security Administration, the employees earnings records were inadvartently destroyed. None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax was withheld at the rate of 6.0% and Medicare tax at the rate of 1.5% on salary, Data on dates of employment, salary rates, and employees’ income taxes wthheld, which are summarized as follows, were abtained from personnel records and payroll records: Monthly Salary Monthly Income Tax Withheld. Employee Date First Employed $3,900 $377 Nov. 16 Arnett 1.053 5.600 Jan. 2 Cruz 360 2,900 Edwards Oct. 1 260 2,100 Dec. 1 Harvin 2,340 10.400 Feb. 1 Nicks 536 3,500 Mar. 1 Shiancoe 1,858 8.600 Nov. 16 Ward Required: 1. Calculate the amounts to be reported on each emplovee’s Wage and Taxx Statement (Form W-2). Enter amounts to the nearest cent if reguired. Enter all amounts as positive numbers, Medicare Tax Social Security Tax Federal Income Tax Withheld Gress Earnings Employee Withheld Withheld Armett Cruz Edeards Harvin Nicks Shiancoe Ward 2. Calculate the followina employer pavroll taxes for the vear (a) social aecurity (b) Medicare: () state unemployment compensation at 5.4% on the first $10.000 of each emplovee’s earning8: (d) federal unemplayment compensation at 0.8% on the first $10.000 of each emplovee’s eanings: (e) total. Round your ansvers to two decimal places Previous

Question: An IT Support Group At A University Has Seven Projects To Complete. The Time In Days And Project Deadlines Are Shown Below. Project 2 3 4 1 5 6 7 Time 4 12 16 9 15 8 Deadline 12 24 |60 28 24 36 48 Sequence The Projects To Minimize The Average Lateness. A. B. Sequence The Projects To Minimize The Average Tardiness. Compare These Solutions To The SPT …

An IT support group at a university has seven projects to complete. The time in days and project deadlines are shown below. Project 2 3 4 1 5 6 7 Time 4 12 16 9 15 8 Deadline 12 24 |60 28 24 36 48 Sequence the projects to minimize the average lateness. a. b. Sequence the projects to minimize the average tardiness. Compare these solutions to the SPT and EDD rules. C. et

Question: Malaysia Manufactures Sporting Equipment. One Of The Company’s Products, A Football Helmet For The North American Market, Requires Bandar Industries Berhad Special Plastic. During The Quarter Plastic. The Plastic Cost The Company $14,797. Ending June 30, The Company Manufactured 3,300 Helmets, Using 1,947 Kilograms According To The Standard Cost Card, …

Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires Bandar Industries Berhad special plastic. During the quarter plastic. The plastic cost the company $14,797. ending June 30, the company manufactured 3,300 helmets, using 1,947 kilograms According to the standard cost card, each helmet should require 0.5 kilagrams of plastic, at a cost of $8 per kilogram Required: for plastic should have been incurred to make 3,300 helmets? How much greater or less is this than the cost that was incurred? (Round “standard kilograms of plastic per helmet” to 1 decimal place, Number of helmets Standard kllograms of plastlc per helmet Total standard kllograms allowed Standard cost per kilogram Total standard cost Actual cost incurred Total standard cost Total material variance 2. Break down the difference computed in (1) above into a materials price variance and a materials quantity variance. (Round your actual materials price to two decimal places, and round your final answers to the nearest whole dollar. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance).) Materlals price variance Materials quantity variance

Question: SOLVE FOR PART V, VI, VII AND VIII Only. Previous Parts Have Been Solved.

Question 4 and 3. The endowments of the three An economy has three agents, A. B and C. and three goods 1. follows: consumers are eA(3,0,0); e=(0,5,0): e=(1,1,1). (i) Write down the total endowment vector of the economy. e = Given a price vector p (p.p2. Pa), the demand functions of the three agents for each of the three goods follows (I am giving these to you rather than ask you to solve the optimisation problems): are 2p #(p)-2 Ps (d) (d) (ii) Find the aggregate demand functions for the three goods in this economy, and simplify them. (p (p)= r(p) (ii Write down the aggregate excess demand functions for the three goods. 2(p) 22(p) 2(p) Now recall the mapping from the price simplex to itself that we used in order to generate a fixed point which would correspond to the equilibrium. Below, you will map f(p). Please be careful with your arithmetic. particular price vector into its value Let p( ). Answer the question below for these prices. (iv) Find the excess demand for each good at this price vector: a(p) (v) Find the vector m(p), where m(p) is given by m(p) = p minfe, max(0,(p)}} m(P) m2 ma(p) (vi) Find the vector f(p) which the price p( ) maps into, by normalising the price-vector m(p that you just found. (vii) Recall the excess demand functions that you found in part (iii). For each good i,2,3, write down the configurations of prices for which (p) 0 Each of these will involve all three prices (p.pps)-1 (p) 0 2(p)=0 2a(p)= 0 orium Hint: part (vii) aboe, find a price vector in the simph an’t solve for the three euilibrim prices from tbe three excess demand emation Walras Lawl (viii that is

Question: During The Year Ended December 31, 2018, And In The Following Months Of January And February 2019, Clinton Inc. Had The Following Transactions Pertaining To Its Held For Trading Investments: Purchased 2,000 Starr Corporation $5, Preferred Shares For $210,000 Cash. Apr 1 July Recelved Quarterly Cash Dividend. 1 Sold 500 Starr Shares For $55,500 Cash …

During the year ended December 31, 2018, and in the following months of January and February 2019, Clinton Inc. had the following transactions pertaining to its held for trading investments: Purchased 2,000 Starr Corporation $5, preferred shares for $210,000 cash. Apr 1 July Recelved quarterly cash dividend. 1 Sold 500 Starr shares for $55,500 cash 2 Oct 1 Recelved quarterly cash dividend Nov. 22 Starr declared the quarterly dividend on November 22, to preferred shareholders of record on December 15, payable on January 1 Starr’s shares were trading at $112 per share. Dec 31 Jan. 31 Due to an urgent need for cash, 700 Starr Corporation shares were sold despite a drop in the share price to $89 per share Feb. 15 Clinton sold an additional 500 Starr shares after the market recovered to $114 per share. Part 1 Your answer is partially correct Record the above transactions, using the fair value through profit or loss model. Prepare any required adjusting entries at December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No Entry” fo the account titles and enter O for the amounts.) Account Titles and Explanation Date Debit Credit Apr. 1, 2018 Held for Trading Investments 210000 Cash 210000 July 1,2018 Cash 2500 Dividend Revenue 2500 gly 2,2018 Cash 55000 Realized Gain on Held for Trading Investments 2500 Held for Trading Investments 52500 2500 Oct. 1, 2018 Cash 2500 Dividend Revenue 2500 Oct. 1, 2018 Cash 2500 Dividend Revenues Nov. 22, 2018 No Entry C No Entry (To record dividends.) Dec. 31, 2018 10500 Unrealized Gain on Held for Trading Investments 10500 Held for Trading Investments (To record unrealized gain / (loss).) 62300 Jan. 31, 2019 Cash 11200 Realized Loss on Held for Trading Investments 73500 Held for Trading Investments 57000 hb. 15, 2019 Cash 4500 Realized Gain on Held for Trading Investments 52500 Held for Trading Investments

Question: Wayne Company Is Considering A Long-term Investment Project Called ZIP. ZIP Will Require An Investment Of $125,961. It Will Have A Useful Life Of 4 Years And No Salvage Value. Annual Cash Inflows Would Increase By $79,200, And Annual Cash Outflows Would Increase By $39,900. The Company’s Required Rate Of Return Is 9%. Click Here To View PV Table.

TABLE 3 Present Value of 1 (n) 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% Periods 95238 93458 .90909 1 96154 .94340 92593 91743 .90090 .89286 86957 79719 2 92456 90703 .89000 87344 85734 84168 82645 81162 75614 73119 3 88900 .86384 .83962 81630 .79383 77218 75132 71178 65752 4 .65873 85480 .82270 79209 76290 73503 70843 68301 63552 .57175 82193 78353 5 74726 71299 68058 64993 62092 .59345 56743 49718 6 79031 74622 70496 66634 63017 59627 .56447 .53464 .50663 43233 7 54703 75992 71068 66506 62275 .58349 .51316 48166 45235 37594 43393 32690 8 73069 67684 .62741 58201 .54027 .50187 46651 40388 9 70259 .64461 .59190 54393 .50025 .46043 42410 39092 .36061 28426 .6139 50835 46319 42241 32197 10 67556 55839 .38554 35218 24719 64958 28748 11 .58468 52679 47509 42888 38753 35049 .31728 21494 12 62460 55684 49697 44401 39711 35554 .31863 .28584 25668 .18691 13 60057 53032 46884 .41496 36770 32618 28966 25751 22917 16253 20462 14 57748 50507 44230 38782 34046 29925 26333 23199 14133 15 .55526 48102 41727 36245 31524 27454 .23939 20900 .18270 12289 33873 21763 16312 16 53391 45811 39365 29189 25187 18829 .10687 .43630 37136 09293 17 51337 31657 27027 23107 .19785 .16963 14564 18 49363 41552 35034 29586 25025 21199 17986 .15282 .13004 08081 19 .47464 39573 .33051 27615 23171 .19449 16351 13768 .11611 07027 20 45639 31180 17843 37689 25842 21455 .14864 12403 .10367 06110

Question: G H K Minimum 50% Capacity US Shipment Germany 1,300 1,400 Shipment Japan 2,000 2,100 Shipment Brazil Shipment India Shipment Demand(ton/yr) N. America S. America 600 100 160 1,200 10 2,200 2,300 270 1,200 800 190 190 0 Europe Japan Asia Capacity (ton/yr) Minimum Run Rate 1,300 2,000 1,700 600 200 1,400 1,400 1,300 200 1,400 1,300 95 300 25 2,100 2,100 …

G H K Minimum 50% Capacity US Shipment Germany 1,300 1,400 Shipment Japan 2,000 2,100 Shipment Brazil Shipment India Shipment Demand(ton/yr) N. America S. America 600 100 160 1,200 10 2,200 2,300 270 1,200 800 190 190 0 Europe Japan Asia Capacity (ton/yr) Minimum Run Rate 1,300 2,000 1,700 600 200 1,400 1,400 1,300 200 1,400 1,300 95 300 25 2,100 2,100 1,000 120 0 20 900 800 80 100 185 100 475 475 80 50 25 200 200 80 93 238 25 100 40 Rs Mark Yen Real Production Cost per Ton 1,800 000 10,000 15,000 13,000 400,000 Exch Rate 0.562 0.023 1.000 0.502 0.009 Prod Cost per Ton(US$) Production Cost In US$ Tpt Cost in US$ 16,740 418,500 7,306 9,200 736,000 10,000 1,000,000 7,530 1,461,200 3,576,750 487,000 164,000 64.000 7,500 60,000 7.974.950 800,000 426,000 1.625.200 4,063,750 1,060,000 Total AB D G K P C no 50% Capacity constraint 1 2 Shipment India 2,200 2,300 US Shipment Germany Shipment Japan Shipment Brazil 1,200 Shipment Demand(ton/yr) 270 N. America S. America Europe 600 270 1.300 2,000 0 1,200 1.400 800 190 190 2 100 1,300 1,400 2.100 1,300 1,000 200 600 200 1,400 120 7 2,000 Japan 1,400 120 300 2,100 800 100 1.700 1,300 Asia 100 006 50 80 Capacity (ton/yr) 460 200 185 475 420 C Minimum Run Rate 100 40 25 93 238 10 Rs. Real Yen Mark 11 400.000 13,000 Production Cost per Ton 15,000 1,800,000 10,000 12 0 562 0.023 9,200 0.009 0.502 1.000 13 Exch Rate 7,306 Prod Cost per Ton(US$) Production Cost In US$ 16,740 7,530 3,162,600 418.000 10,000 14 3.360.760 15 476,000 16 Tpt Cost in US$ 17 7.417.360 3.836.760 3,580,600 18 Total 19 20 21 C M N K H G A B 10 tons more capacity in Brazil Shipment Demand(ton/yr) 0 Shipment India 2,200 2.300 Shipment Brazil 1,200 Shipment Japan 135 Shipment Germany 115 US 270 (0) 20 2,000 1,300 600 N. America 190 190 800 2,100 1,400 1,200 S. America 200 1.300 1,400 1,400 600 200 1,300 Europe 1 000 120 2,100 300 120 2,000 1,400 Japan 100 80 800 2,100 900 20 1,300 1,700 Asia 80 80 210 210 50 175 115 475 185 Capacity (tonlyr) 40 105 25 238 93 Minimum Run Rate Rs Real Yen Mark 400 000 13,000 180,000 15,000 Production Cost per Ton 10,000 0.023 0.562 0,009 0.502 1.000 Exch Rate 9.200 7,306 1,674 Prod Cost per Ton(US$) Production Cost In US$ Tpt Cost in US$ 7,530 10,000 1,150,000 736,000 1,534,260 3.576,750 176,000 64.000 489.500 69,000 7.795,510 800.000 1.710.260 4,066,250 1,219,000 Total alings Review View Help Sunchem, a manufacturer of printing inks, has five manufacturing plants worldwide. Their locations and capacities are shown in Table 5-7 along with the cost of producing 1 ton of ink at each facility. The production costs are in the local currency of the country where the plant is located. The major markets for the inks are North America, South America, Europe, Japan, and the rest of Asia. Demand at each market is shown in Table. Transportation costs from each plant to each market in U.S. dollars are shown in Table 5-7. Management must come up with a production plan for the next year. South Amerka Production North Capacity Tons/Year Cost/Ton Asia America Europe Japan United States $600 $1,300 $2,000 $1,200 $1,700 185 $10,000 $1,300 $600 $1,400 $1,400 $1,300 475 15,000 euro Germany $2,000 $1,400 $2,100 $900 50 1,800,000 yen Japan $300 Brazil $1,200 $1,400 $2,100 $2,100 200 13,000 real $800 400,000 rupees India $2,200 $1,300 $1,000 $800 80 $2,300 Demand 270 200 120 190 100 (tons/year) a. If exchange rates are of capacity, how much should each plant produce, and which markets should each plant supply? expected as in Table 5-8, and no plant can run below 50 percent Real USS Euro Yen Rupee USS 1,000 1.993 107.7 1.78 43.55 Euro 0.502 54.07 0.89 21.83 Yon 0.0093 0.0185 1 0.016 0.405 Real 0.562 1.124 60.65 24.52 0.023 Rupee 0.046 2.47 0.041 b. If there are no limits on the amount produced in a plant, how much should each plant produce? c. Can adding 10 tons of capacity in any plant reduce costs? d. How should Sunchem account for the fact that exchange rates fluctuate over time?

Question: Present Value Of Annuity Of $1 Periods 19% 2% 3% 49%6 5% 6% 8% 10% 12% 14% 16% 18% 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 …

Present Value of Annuity of $1 Periods 19% 2% 3% 49%6 5% 6% 8% 10% 12% 14% 16% 18% 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 or l 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 9 8.566 8.162 7.786 7,435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 10.368 9.787 11 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12 10.575 9.954 12.134 11.348 10.635 11.255 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4,439 13 9.986 13.004 12.106 11.296 10.563 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 14 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 13.865 12.849 11.938 11.118 10.380 9.712 15 8.559 7.606 6.811 6.142 5.575 5.092 4.675 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 22.023 19.523 17.41315.622 14.094 12.783 10.675 9.077 20 7.469 6.623 5.929 5.353 4.870 25 7.843 6.873 6,097 5.467 4.948 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 30 8.055 7.003 6.177 5.517 4.979 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 40 8.244 7.105 6.233 5.548 4,997 un iReference Future Value of Annuity of $1 Periods 1% 2% 3% 6 % 4% 8 % 59% 10 % 12 % 16 % 14% 18% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1000 1000 1.000 1.000 1.000 1,000 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 4 4,060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6,877 7.154 7.442 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 7 7.214 7,434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436) 12.300 13.233 14.240 15.327 16.499 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 10 10.462 10.950 11.464 12.578 13.181 12.006 14.487 15.937 17.549 19.337 21.321 23.521 25.959 11 11.567 13.486 14.972 12.169 12.808 14.207 18.531 16.645 20.655 23.045 25.733 28.755 32.150 12 12.683 13.412 14.192 16.870 18.882 15.026 15.917 18.977 21.384 24.133 27.271 30.850 34.931 39.581 13 13.809 14.680 15.618 16.627 17.713 21.495 24.523 28.029 32.089 36.786 42.219 48.497 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59.196 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 20 33.066 36.786 22.019 24.297 26.870 29.778 45.762 57.275 72.052 186.688 91.025 115.380 146.628 25 47.727 54.865 73.106 98.347 28.243 32.030 36.459 41.646 133.334 181.871 249.214 342.603 471.981 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 356,787 241.333 530.312 790.948 1,181.882 767.091 1.342.025 2,360.757 4.163.213 7,343.858 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 Future Value of $1 3 % Periods 4 % 1% 2% 5 % 10 % 18 % 6% 8% 12% 14% 16 % 20% 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.180 1.160 1.200 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 5 1.051 1.104 1.159 1.217 1.276 1,338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 1.062 1.126 1194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.502 2.211 2.826 3.185 3.583 tini 1.083 1.172 1.267 1.369 1.477 1.591 1.851 2.144 2476 2.853 3.278 3.759 4.300 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4,435 5.160 10 1.105 1.215 1.344 2.159 1.480 1.629 1.791 2.594 3.106 3.707 4.411 5.234 6.192 11 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 12 2.012 2.518 3.138 1.127 1.268 1.426 1.601 1.796 3.896 4.818 5.936 7.288 8.916 2.133 13 1.138 1.294 1.469 1.665 1.886 2.720 3.452 4.361 5.492 6.886 8.599 10.699 1.732 2.261 2.937 14 1.149 1319 1513 1.980 3.797 4.887 6.261 7.988 10.147 12.829 2.397 3.172 15 1.161 1.346 1.558 1.801 2.079 4.177 5.474 7.138 9.266 11.974 15.407 1.220 2.191 3.207 20 1.486 L806 2.653 4.661 6.727 9.646 13.743 19.461 27.393 38.338 25 1.282 1.641 2,094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.390 30 1,348 1.811 2.427 3.243 4.322 5,743 10.063 17.449 85.850 29.960 50.950 237.376 750.378 1,469.772 143 371 40 1.489 2.208 7,040 10.286 21.725 3.262 4.801 45.259 93.051 188.884 378.721 1. Compute the payback period, the ARR, and the NPV of these two plans. What are the strengths and weaknesses of these capital budgeting models? 2. Which expansion plan should Cuppa choose? Why? 3. Estimate Plan A’s IRR. How does the IRR compare with the company’s required rate of return? FI2028 (S al 8 Queston Hepe C Cuppa Inc operates a chain of lunch shops The company is considering two possible expareion plans Plan A would open eight smaller shops at a cost of 58.940,000 Expeced aneual net cash inows are 51.550,000wth z residual vale at the end of ten years. Under Plan B, Cuppa would open three langer shops at a cost of 58.840,000 This plan is expected to generate net cash ino of $1,100,000 per year for on years, the estiated Me of the properties Estimated reaidal value is 5950,000 Cuppa uses straight ine depreciation and requires an annual reban of 10 % (Cick the icon to view the present value annuity factor table) (Click the lcen to view the present value factor table (Cick the koon to view the future vald factor table) Cick the icon to view the Suture value annuily faclor table) Read the teguitements Requirement 1. Compute the payback period, the ARR, and the NPV of these tao plans. What are the strengths and weaknesses of these capital budgeting models? Begin by computing the payback period for both plans. (Round your answers to one decimal place) years Plan A years Plan B Now compute the ARR (accounting rate of retum) for both plans. (Round the peroentages to the nearest Senth percent) % Plan A % Plen D Next compute the NPV (net present value) under each plan. Begin with Plan A, then compute Plan 8. (Round your answers to the nearest whole dollar and use parentheses or a minusi sign to represent a negative NPV) Net present value of Pian A Nat present velue of Plan B Match the term with the strengths and wesknesses isted for each of the three capital budgeting models is basod on cash fows, can be used to assoss profitabilty, and takes into ac0ount the time value of money It has none of the weaknesses of the other two models is easy to understand, is based on cash flows, and highlights rgks However, it ignores proftablity and the time value of money can be used to assoss profitability, but it ignores the time value of money Requirement 2. Which expension plan should Cuppa choose? Why? Recommendation: Invest in has the nat present vaiue. It also has e Ypayback period Requirement 3. Estimate Plan A’s RR How does he iRR compare with the company’s required rale of reum The IRR (ntamal rale of retum) of Plan A is betweon This rate the company’s hurdie rate of 10% Choose from any ist or enter any number in the input fids and then continue to the next question Cuppa Inc. operates a chain of lunch shops. The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,940,000. Expected annual net cash inflows are $1,550,000 with zero residual value at the end of ten years Under Plan B, Cuppa would open three larger shops at a cost of $8,840,000. This plan is expected to generate net cash inflows of $1,100,000 per year for ten years, the estimated life of the properties. Estimated residual value is 50 Cuppa uses straight-line depreciation and requires an annual return of 10 %. (Click the icon to view the present value annuity factor table.) (Click the icon to view the present value factor table.) (Click the icon to view the future value annuity factor table) (Click the icon to view the future value factor table.) Read the tequirements Requirement 1. Compute the payback period, the ARR, id the NPV of these two plans. What are the strengths and weaknesses of these capital budgeting models? Begin by computing the payback period for both plans (Round your answers to one decimal place) Plan A 5.8 years Plan B 8.0 years torrect: 0 Now compute the ARR (accounting rate of return) for both plans. (Round the percentages to the nearest fenth percent.) Plan A % Plan B % Present Value of Annuity of $1 Periods 19% 2% 3% 49%6 5% 6% 8% 10% 12% 14% 16% 18% 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.402 2.487 2.322 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 or l 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12 10.575 9.954 12.134 11.348 10.635 11.255 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4,439 13 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13.004 12.106 11.296 10.563 14 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 13.865 12.849 11.938 11.118 10.380 9.712 15 8.559 7.606 6.811 6.142 5.575 5.092 4.675 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 20 7.469 6.623 5.929 5.353 4.870 22.023 19.523 17.41315.622 14.094 12.783 10.675 9.077 25 7.843 6.873 6.097 5.467 4.948 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 30 8.055 7.003 6.177 5.517 4.979 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 40 8.244 7.105 6.233 5.548 4.997 un Reference Future Value of Annuity of $1 Periods 1% 2% 3% 6 % 4% 8 % 5% 10 % 14 % 16 % 12% 18% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1,000 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 3,030 3 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.640 3.572 4 4,060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 7.442 6.353 6.610 6,877 7.154 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 7 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436) 12.300 13.233 14.240 15.327 16.499 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 10 10.462 10.950 11.464 12.578 13.181 12.006 14.487 15.937 17.549 19.337 21.321 23.521 25.959 11 11.567 13.486 12.169 12.808 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 12 12.683 13.412 14.192 16.870 18.882 15.026 15.917 18.977 21.384 24.133 27.271 30.850 34.931 39.581 13 13.809 14.680 15.618 16.627 17.713 21.495 24.523 28.029 32.089 36.786 42.219 48.497 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59.196 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 33.06 36.786 20 22.019 24.297 26.870 29.778 45.762 57.275 72.052 186.688 91.025 115.380 146.628 25 41.646 47.727 54.865 73.106 28.243 32.030 36.459 98.347 133.334 181.871 249.214 342.603 471.981 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 356.787 241.333 530.312 790.948 1,181.882 767.091 1.342.025 2,360.757 4,163.213 7,343.858 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 I Present Value of $1 Periods 19% 2% 3% 4%6 5% 6% 10 % 8% 12% 16 % 14% 18% 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.909 0.926 0.893 0.877 0.862 0.847 0.833 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.712 0.751 0.675 0.641 0.579 0.609 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 7 0.933 0.871 0.813 0.760 0.711 0.583 0.665 0.513 0.452 0.400 0.354 0.314 0.279 8 0.923 0.853 0.789 0.731 0.467 0.677 0.627 0.404 0.540 0.351 0.266 0.305 0.233 0.914 0.837 0.766 , 0.500 0.703 0.645 0.592 0.424 0.361 0.308 0.263 0.225 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 20 0.820 0.673 0.554 0.377 0.312 0.215 0.456 0.149 0.104 0.073 0.051 0.037 0,026 25 0.295 0.233 0.780 0.610 0.478 0.375 0.146 0.092 0.059 0.038 0.024 0.016 0.010 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 on Future Value of $1 3 % Periods 1% 4 % 2% 5 % 6 % 8% 10% 12% 14% 16 % 18% 20% 1.010 1.020 1.030 1.040 1.050 1,060 1.080 1.100 1.120 1.140 1.180 1.160 1.200 2. 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.482 1.405 1.561 1.643 1.728 4 1.126 1.041 1.082 1.170 1.216 1.262 1.360 1,464 1,574 1.689 1.811 1.939 2.074 5 1.051 1.104 1.159 1.217 1.276 1,338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.502 2.211 2.826 3.185 3.583 tin 1.083 1.172 1.267 1.369 1.477 1.591 1.851 2.144 2476 2.853 3.278 3.759 4.300 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 2.332 11 1.116 1.243 1.384 1.539 1.710 1.898 3.479 2.853 4.226 5.117 6.176 7.430 12 2.012 2.518 1.127 1.268 1.426 1.601 1.796 3.138 3.896 4.818 5.936 7.288 8.916 2.133 13 1.138 1.294 1.469 1.665 1,886 2.720 3.452 4.363 5.492 6.886 8.599 10.699 2.261 2.937 14 1.149 1319 1513 1.732 1.980 3.797 4887 6.261 7.988 10.147 12.829 2.397 3.172 15 1.161 1.346 1.558 1.801 2.079 4.177 5.474 7.138 9.266 11.974 15.407 1806 2.191 2.653 3.207 20 1.220 1.486 4.661 6.727 9.646 13.743 19.461 27.393 38.338 25 a0 1.282 1.641 2,094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 1.348 1.811 2.427 3.243 4.322 5.743 10.063 17.449 85.850 29.960 50.950 237.376 143371 750.378 1,469.772 40 1.489 2.208 4.801 7.040 10.286 21.725 3.262 45.259 93.051 188.884 378,721 1. Compute the payback period, the ARR, and the NPV of these two plans. What are the strengths and weaknesses of these capital budgeting models? 2. Which expansion plan should Cuppa choose? Why? 3. Estimate Plan A’s IRR. How does the IRR compare with the company’s required rate of return? Requirement 1. Compute the payback period, the ARR, and the NPV of these tao plans. What are the strengths and weaknesses of these capital budgeting models? Begin by computing the payback pariod for both plans. (Round your answers to one decimal place) years Plan A years Plan B Now compute the ARR (accounting rate of retum) for both plans. (Round the peroentages to the nearest tenth percent.) % Plan A % Plen D Next compute the NPV (net present value) under each plan. Begin with Plan A then compute Plan B. (Round your answers to the nearest whole dollar and use parentheses or a minusi sign to represent a negative NPV) Net present value of Pian A Net present velue of Plan B Match the term with the strengths and wesknesses isted for each of the three capital budgeting models is based on cash fows, can be used to assoss profitabity, and takes into account the time value of money It has none of the weaknesses of the other two models is easy to understand, is based on cash flows, and highlights rks However, it ignores proftablity and the time value of money can be used to assess proftabilty but it ignores the time value of money Requirement 2. Which expension plan should Cuppa choose? Why? Recommendation Invest in has the nat present vaiue. It also has a payback period. Requirement 3. Estimale Plan A’s RR How does the iRR compare with the company’s required rate of reum The IRR (ntamal rale of retum) of Plan A ls between This rate the company’s hurdie rate of 10% Choose from any ist or enter any number in the input aids and then continue to the nex queon

Question: Looking For The Perpetual FIFO Method, LIFO Method, And Periodic Average Method

TCsf 149 PURCHASES 240 SALES IN UNITS DATE UNITS UNIT COST SALE PRICE PER UNIT 1-Jul 30 $2 6-Jul $5 50 11-Jul $3 Co 20 14-Jul 10 $5 21-Jul 30 $4 Z0 27-Jul 10 $5 29-Jul 40 $5 PREPARE AN INCOME STATEMENT USING: PERIODIC AVERAGE METHOD Sales Less cost of goods Sold Gross Profit (ostof 10

Question: Wayne Company Is Considering A Long-term Investment Project Called ZIP. ZIP Will Require An Investment Of $125,961. It Will Have A Useful Life Of 4 Years And No Salvage Value. Annual Cash Inflows Would Increase By $79,200, And Annual Cash Outflows Would Increase By $39,900. The Company’s Required Rate Of Return Is 9%. Click Here To View PV Table.

TABLE 3 Present Value of 1 (n) 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% Periods 95238 93458 .90909 1 96154 .94340 92593 91743 .90090 .89286 86957 79719 2 92456 90703 .89000 87344 85734 84168 82645 81162 75614 73119 3 88900 .86384 .83962 81630 .79383 77218 75132 71178 65752 4 .65873 85480 .82270 79209 76290 73503 70843 68301 63552 .57175 82193 78353 5 74726 71299 68058 64993 62092 .59345 56743 49718 6 79031 74622 70496 66634 63017 59627 .56447 .53464 .50663 43233 7 54703 75992 71068 66506 62275 .58349 .51316 48166 45235 37594 43393 32690 8 73069 67684 .62741 58201 .54027 .50187 46651 40388 9 70259 .64461 .59190 54393 .50025 .46043 42410 39092 .36061 28426 .6139 50835 46319 42241 32197 10 67556 55839 .38554 35218 24719 64958 28748 11 .58468 52679 47509 42888 38753 35049 .31728 21494 12 62460 55684 49697 44401 39711 35554 .31863 .28584 25668 .18691 13 60057 53032 46884 .41496 36770 32618 28966 25751 22917 16253 20462 14 57748 50507 44230 38782 34046 29925 26333 23199 14133 15 .55526 48102 41727 36245 31524 27454 .23939 20900 .18270 12289 33873 21763 16312 16 53391 45811 39365 29189 25187 18829 .10687 .43630 37136 09293 17 51337 31657 27027 23107 .19785 .16963 14564 18 49363 41552 35034 29586 25025 21199 17986 .15282 .13004 08081 19 .47464 39573 .33051 27615 23171 .19449 16351 13768 .11611 07027 20 45639 31180 17843 37689 25842 21455 .14864 12403 .10367 06110

The post Question: Table Forma Insert Edit File Ch 16 P16-6A Numbers T Media Comm 86 % V Shape Text Table Chart Insert Zoom View P16-6A Date: Course: Name: Instructor P16-6A Prepare The Operating Activities Section- Direct Method Zumbrunn Company’s Income Statement Contained The Condensed Information Below ZUMBRUNN COMPANY Income Statement For The Year Ended December … appeared first on uniessay writers.

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