In the appropriate columns below to
the right calculate the IRR and NPV
using the following figures: 20,000
equipment purchase, yr. 1 rev. 7,000,
yr. 2, 8,000, yr.3 5,000, yr. 4, 4,000
and yr. 5, 3,000. For net present
value (NPV) assume a 15% interest
rate. In both cases, use the $ 20,000
as a negative first number.
Internal
Rate of
Return
IRR
Net Present
Value
15%
NPV
In the appropriate columns below to
the right calculate the IRR and NPV
using the following figures: 20,000
equipment purchase, yr. 1 rev. 7,000,
yr. 2, 9,000, yr.3 5,064, yr. 4, 4,000
and yr. 5, 3,000. For net present
value (NPV) assume a 15% interest
rate. Your formula's have to be
correct
Calculate goodwill on an asset
purchase based on the
following figures: AR cost
50,000 fmv 50,000. Inventory
cost 100,000 fmv 100,000, Land
cost 75,000 fmv 100,000;
building cost 500,000 depn
100,000 fmv 600,000,
Equipment cost 25,000 fmv
25,000 The discounted cash
flow projection is 75,000 each
year for 5 years assume a 20%
discount rate.
Based on the above and
goodwill calculation, calculated
the purchase price. Round the
goodwill figure to the nearest
$5,000. For example 129,442
would be 130,000.
Record the purchase calculated in the
goodwill. The purchase is for cash.
Define DSO in the box below in black and
calculate DSO and the following
information. Accounts Receivable end
yr. 1: 125,000; end yr 2; 75,000. Credit
Sales 1,000,000
Based on the balance sheet, please prepare the current ratio and quick ratio
below, Show the formula then show the calculation.
Assets
Current Assets
Cash
Miscellaneous Supplies
Accounts Receivable
31,000
Allowance for Doubtful Accounts(3,000)
Inventory - Computers
Total Current Assets
Equipment - Network
Accum Depn
Equipment - Computers
Accum Depn
Office Furniture & Fixtures
Accum Depn
Software
Accum Depn
Total long-term assets
Total Assets
Liabilities and
Current Liabilities
25,000
20,000
28,000
27,000
100,000
100,000
(1,667)
15,000
(250)
30,000
(500)
20,000
(333)
162,250
262,250
Long-term Debt
Stockholder Equity
Liabilities and Stockholder Equity
urrent Liabilities
Accounts Payable
Rent Payable
Accrued Interest Payable
Accrued Salaries & Wages Payable
Current Portion of Note Payable
Total Current Liabilities
ong-term Debt
Note Payable
Total Liabilities
ockholder Equity
Common Stock
15,000
0
2,084
25,000
7,352
49,436
251,648
301,084
Retained Earnings
Total Stockholder Equity
30,000
0
(68,834)
(38,834)
Total Liabilities and Stockholder Equity
262,250
500,000
251,648
248,352
Please Prepare a Cash Flow Analysis
Sample Balance Sheet
Assets
Cash
Accounts Receivable
Inventory
Other current assest
Total current assets
Property, plant and equipment
Other long-term assets
Total assets
Liabilities
Accounts payable
Short-term debt
Total Current liablities
Long-term debt
Total Liabilities
Shareholders' Equity
Common stock
Retained earnings
Total stockholder's equity
Total Liabilities & stockholders' Equity
Sales
12/31/2013
12/31/2012
5,000
80,000
75,000
12,000
172,000
95,000
30,000
297,000
7,000
58,000
100,000
10,000
175,000
75,000
32,000
282,000
26,100
1,900
28,000
119,000
147,000
30,000
2,000
32,000
120,000
152,000
(3,900)
(100)
110,000
40,000
150,000
297,000
100,000
30,000
130,000
282,000
10,000
10,000
295,000
295,000
282,000
282,000
(22,000)
25,000
(2,000)
(20,000)
2,000
(1,000)
80,000
Sales
Cost of goods
Gross Profit
Salaries & Wag
Depreciation
Interest Expen
Taxes
Net Profit
Income Statement
Sales
Cost of goods sold
Gross Profit
Salaries & Wage
Depreciation
Interest Expense
Taxes
Net Profit
80,000
25,000
55,000
20,000
15,000 included in AP
5,000 included in AP
5,000
45,000
10,000
Cash Flow from operations is
Net change in fixed assets is
Depreciation is
63,000
5,000
15,000
The error in recording ck 499 relates
to rent expense. Prepare the
adjusting journal entry to correct this
mistake
COMPANY
Bank Reconciliation
December 31, 2013
Cash Balance per bank statement
Add: Deposits in transit
Less: Outstanding checks
No. 501
No. 502
No. 503
Adjusted cash balance per bank
Cash balance per books
Add:
Collection of NSF check
Less:
NSF check
Error in recording ck 499
Bank service charge
Adjusted cash balance per books
MPANY
conciliation
er 31, 2013
20,000
2,000
22,000
3,000
500
1,000
4,500
17,500
15,500
4,000
4,000
19,500
450
1,500
50
2,000
17,500
Fixed Costs are
Selling Price per Unit
Variable Cost per Unit
50,000
750
250
How many units need to be sold to Breakeven?
Show your analysis
