The following data are accumulated by Walola Company in evaluating the purchase of $140,000 of equipment, having a 4-year useful life: Year 1 $43,500 $78,500 Year 2 F 26,500 61,500 Year 3 13,000 46,000 Year 4 (2,000) 37,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Net Income Net Cash Flow Open spreadsheet a. Assuming that the desired rate of return is 20%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value t b. would management be likely to look with favor on the proposal? because the net present value indicates that the return on the proposal is than the minimum desired rate of return of 20%

The following data are accumulated by Walola Company in evaluating the purchase of $140,000 of equipment, having a 4-year useful life: Year 1 $43,500 $78,500 Year 2 F 26,500 61,500 Year 3 13,000 46,000 Year 4 (2,000) 37,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Net Income Net Cash Flow Open spreadsheet a. Assuming that the desired rate of return is 20%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value t b. would management be likely to look with favor on the proposal? because the net present value indicates that the return on the proposal is than the minimum desired rate of return of 20%

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 2R: Open the file MASTER from the website for this book at cengagebrain.com. Enter all the formulas...

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The following data are accumulated by Geddes Company in evaluating the purchase of $120,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $49,500 $79,500 Year 2 29,000 59,000 Year 3 16,500 46,500 Year 4 6,500 36,500 This information has been collected in the Microsaft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. K) Open spreadsheet a. Assuming that the desired rate of return is 15%, determine the net present value for the proposal. If required, round to the nearest dollac. Net present value b. Would management be likely to look with favor on the propesal? the net present value indicates that the return on the proposal is than the minimum desired rate of retum of 15%
The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $44,000 $81,500 Year 2 26,000 63,500 Year 3 10,000 47,500 Year 4 3,000 40,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Assuming that the desired rate of return is 12%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value $fill in the blank 2
The following data are accumulated by Geddes Company in evaluating the purchase of $130,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $49,000 $81,500 Year 2 24,500 57,000 Year 3 13,000 45,500 Year 4 7,000 39,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Assuming that the desired rate of return is 15%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value $ Would management be likely to look with favor on the proposal? , the net present value indicates that the return on the proposal is than the minimum desired rate of return of 15%.
Need some assistance logging these scenarios in a journal entry. April 2: The firm signed an agreement with a contractor to install shelves costing $18,000. The work will begin on April 4. Purchased a delivery truck by paying $1,000 and taking out a 5 year 12% loan for $24,000. Mark used the company's funds to purchase additional equipment costing $22,000 and furniture and fixtures costing $38,000. It was necessary to pay a computer consultant $4000 to install, configure, and test the equipment prior to its use. April 3: The company borrowed $100,000 from Mark by signing a five-year promissory note at 12% (ignore the interest for now) The company purchased a business health license from the county at a cost of $2,400. The license expires one year from now. April 8: Work on the leasehold improvements was finished and the contractor was paid $18,000. April 15: Sales for the first half of the month totaled $42,000, of which $18,000 was for cash and the remainder on account. The…
T Account entries for Simple Construction:Bob Simple graduated from the BCIT Construction Management Program and decided to start his own construction company. We will record various entries that might be made in a T account sheet in order to account for his second year of operations. At the end of the first year, his income statement and balance sheet havethe following values:Balance Sheet Entries for Last Year:Cash: 365,000Accounts Receivable: $17,000Materials Inventory: $2000Equipment: $15,000Accumulated Amortization: $500Accounts Payable: $22,000Bank Loan –Long Term: $10,000Dividend Payable: $35,000Interest Payable: $500Wages Payable: $5,000Common Stock: $250,000Retained Earnings: $76,000Income statement Final Entries for Last Year:Revenue: $145,000Materials Expense: $20,000Wages Expense: $10,000Amortization Expense: $500Rental Expense: $2,500Interest Expense: $1000Net Income: $111,000 Question 1a.Enter the relevant amounts in the T sheet to start the current year, and designate…
Open the file MASTER from the website for this book at cengagebrain.com. Enter all the formulas where indicated on the worksheet. Check to be sure that your balance sheet balances. Enter your name in cell A1. Save the completed file as MASTER2. Print the worksheet when done. Also print your formulas using fit-to-1 page scaling. Check figures: Borrowing (cell B78), $7,280; forecasted net income (cell D95), $40,200; total assets (cell D105), $507,600.
Brill Company made the following expenditures during the current year: Costs to develop computer software for internal use in Brill’s general management information system: 1 000 000 Cost of market research activities 750 000 How much Brill Company's expense?
Home Office put up a branch with initial investment of cash 400,000; and equipment180,000, and furniture & fixtures, 100,000, both to be booked in the branch. Requirements:a. Prepare the journal entries for both the Home Office and Branch books based on theabove transactions.
A company owner has asked his accountant to research the photocopier equipment available from vendors, and to recommend the two best equipment alternatives. The company owner will decide on one piece of equipment topurchase. The fee charged for the accountant’s research was $500. The accountant’s report produced the following information: Photocopier (A) Photocopier (B) Initial cost, including installation $6,500 $ 6,000 Economic life 5 years 5 years Scrap value at end of economic life -0- -0- Initial training cost $ 500 $ 700 Annual maintenance $ 400 $ 300 Annual wage cost $12,500 $12,500 REQUIRED 1. Which photocopier should the company owner choose? Why? 2. The company owner requested your help in preparing the coming year company budget. Please, guide him to the best method and appropriate type from your perspective.
Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes music players (cPod), mobile phones (cPhone), and smartwatches (Cannington Watch) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of Cannington: Line Item Description Current Year Preceding Year Land and buildings $632,810 $367,030 Machinery, equipment, and internal-use software 601,170 474,608 Other fixed assets 765,700 575,857 Accumulated depreciation and amortization (803,669) (670,779) a. Compute the book value of the fixed assets for the current year and the preceding year.Current year book value (in millions) fill in the blank 1 of 2$Preceding year book value (in millions) fill in the blank 2 of 2$ A comparison of the book values of the current and preceding years…
Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes music players (cPod), mobile phones (cPhone), and smartwatches (Cannington Watch) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of Cannington: Line Item Description Current Year Preceding Year Land and buildings $632,810 $367,030 Machinery, equipment, and internal-use software 601,170 474,608 Other fixed assets 765,700 575,857 Accumulated depreciation and amortization (803,669) (670,779) a. Compute the book value of the fixed assets for the current year and the preceding year.Current year book value (in millions) :Preceding year book value (in millions) : A comparison of the book values of the current and preceding years indicates that they fill in the blank 1 of 3 .…
Now it's your turn. Complete the next three Plant Asset Records and Cash Receipt Journals Questions? Contact your instructor! Practice #1: The business sold this asset on June 28, 2016. The disposal amount received was $750.00. Complete the disposal section of the plant asset record and journalize the disposal transaction using the journal provided. The journal page is 20 and the source document for the disposal transaction is Receipt 12. w|N|-| Date Bought Date PLANT ASSET RECORD No. YEAR 2011 2012 2013 2014 2015 2016 Description Display Case Disposed of: July 1, 2011 Estimated Useful Life 5 years DATE Annual Depreciation Expense $375.00 $750.00 $750.00 $750.00 $750.00 $375.00 92 Discarded Estimated Salvage Value Serial # Y458725PP ACCOUNT TITLE $750.00 Sold Accumulated Depreciation $375.00 $1,125.00 $1,875.00 $2,625.00 $3,375.00 $3,750.00 General Ledger Account No. 1160 POST DOC NO. REF. G/L Account Store Equipment CASH RECEIPTS JOURNAL Disposal Amount Original Cost $4,500.00…