4 Net Present Value MethodThe following data are accumulated by Waiola Company in evaluating the purchase of $130,000 ofequipment, having a 4-year useful life:Net Income Net Cash Flow$81,00057,00049,50038,500Year 1$48,500Year 224,500Year 317,000Year 4(6,000)This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, performthe required analysis, and input your answers in the questions below.XOpen spreadsheeta. Assuming that the desired rate of return is 6%, determine the net present value for the proposal.If required, round to the nearest dollar.10,815 XNet present value $b. Would management be likely to look with favor on the proposal?Yes, because the net present value indicates that the return on the proposal is greaterthan the minimum desired rate of return of 6%.

Net Present Value -The worth of all future cash flows—positive and negative—discounted to the…

Answered: The following data are accumulated by…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 14M

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Using the information provided below:Rubialac PaintsSelected Income Statement Items, 2020Cash Sales $2,500,000Credit Sales $9,500,000Total Sales $12,000,000COGS 7,000,000 Rubialac PaintsSelected Balance Sheet Accounts12/31/2020 12/31/19 ChangeAccounts Receivable $550,000 $400,000 $150,000Inventory $275,000 $250,000 $25,000Accounts Payable $150,000 $110,000 $40,000 What is the inventory turnover for Rubialac Paints? What is the average production cycle for the firm? What is the average collection cycle? What could Eagle Paints do to reduce the average collection cycle?
Consider the following financial information and answer the questions that follow:Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000You are required to:i) Calculate the operating cash flow ii) Calculate the cash flow to creditors iv) Calculate the cash flow from assets vi) Calculate change in NWC
Consider the following financial information and answer the questions that follow:Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000 1) Calculate the cash flow from assets 2) Calculate net capital spending 3) Calculate change in NWC PLEASE TYPE AS OPPOSED TO WRITING ON PAPER. I MIGHT NOT UNDERSTAND THE HAND WRITING. PLEASE DO EACH QUESTION SEPARATELY. I HAVE ASKED THIS QUESTION MULTIPLE TIMES BECAUSE I COULD NOT UNDERSTAND THE RESPONSE. THANK YOU
Consider the following financial information and answer the questions that follow:Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000You are required to:i) Calculate the operating cash flow ii) Calculate the cash flow to creditorsiii) Calculate the cash flow to shareholdersiv) Calculate the cash flow from assetsv) Calculate net capital spendingvi) Calculate change in NWC
Given the following account balances at year-end, compute the total intangible assets on the balance sheet of Oriole Company. Cash $1330000 Accounts Receivable 1140000 Trademarks 1350000 Goodwill 2690000 Research & Development Costs 2190000
Consider the following financial information and answer the questionsthat follow:Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000You are required to:iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWC
Consider the following financial information and answer the questionsthat follow:Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000 Calculate change in NWC
Consider the following financial information and answer the questionsthat follow:Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000You are required to:iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWC PLEASE SHOW WORKING
Fixed assets. Use the data from the following financial statements in the popup window, E- What are the net fixed assets for the years 2016 and 2017? The net fixed assets for the year 2016 is $ (Round to the nearest dollar.) Data Table (Click on the following icon e in order to copy its contents into a spreadsheet.) Partial Income Statement Year Ending 2017 Sales revenue $350,000 Cost of goods sold $140,000 Fixed costs $43,000 Selling, general, and administrative expenses $28,000 Depreciation $46,000| (Click on the following icon in order to copy its contents into a spreadsheet.) Partial Balance Sheet 12/31/2016 ASSETS LIABILITIES $14,000| $16,000 Notes payable $28,000 Accounts payable Cash Accounts receivable $19,000 Inventories $48,000 Long-term debt $190,000 Fixed assets $368,000 OWNERS' EQUITY Enter your answer in the answer box and then click Check Answer. Print Done part remaining
K Winky Flash Photo reported the following figures on its December 31, 2024, income statement and balance sheet: (Click the icon to view the figures.) Compute the asset turnover ratio for 2024. Round to two decimal places. Data table Net sales Net sales 230,500 Cash Accounts Receivable Merchandise Inventory Prepaid Expenses Property, Plant, and Equipment, net Print + + *** Done Average total assets 460,000 - X $ 460,000 Dec. 31, 2024 Dec. 31, 2023 $ 33,000 $ 26,000 60,000 58,000 71,000 78,000 11,000 7,000 101,000 16,000 = = Asset turnover ratio 1.99
Compare Dollar Tree and Dollar General The asset turnover ratios for two recent years for Dollar Tree, Inc. (DLTR) are shown in the Analysis for Decision Making section of this chapter. Using your results from MAD 5-2, compare and interpret the asset turnover ratios for Dollar Tree and Dollar General (DG).
Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Digitized Corp. and Very Network, Inc. and have assembled the following data. LOADING... (Click to view the income statement data.) Data Table Selected income statement data for the current year: Digitized Very Network Net Sales Revenue (all on credit) $418,290 $494,940 Cost of Goods Sold 210,000 256,000 Interest Expense 0 15,000 Net Income 62,000 70,000 (Click to view the balance sheet and market price data.) Data Table Selected balance sheet and market price data at the end of the current year: Digitized Very Network Current Assets: Cash $24,000 $21,000 Short-term Investments 42,000 19,000 Accounts Receivables, Net 36,000 46,000 Merchandise Inventory 67,000 98,000 Prepaid Expenses 22,000 18,000 Total…

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The following data are accumulated by equipment, having a 4-year useful life: Year 1 Year 2 Year 3 Net Income $48,500 24,500 17,000 lold Net Cash Flow $81,000 57,000 49,500 20. 500