Q15

price purchased $32,000

frieght charges $700
cost for building $2,200 depreciation $5,849

salvage $7,000 depreciation $5,580

year useful 5
maintenance $1,345 it is expense and does not depreciated

Q22
total units sold 1,750

Beginning 500 $4
purchase1 600 $6 1600
purchase2 500 $8
purchase3 400 $10
purchase4 250 $11

total cost $11,100

Q23

cumulative preferred stock 8% total preferred dividends to be paid each year

par $20 $120,000
preferred stocks value $1,500,000

2018 dividents $1,000,000

2017 paid dividents $100,000

Q24
variable cost $480,000 $20.60
fixed cost $550,000 variable cost per unit
total figures 50,000
Unit cost $20.60 total variable cost
total cost
total expected products 54,000 unit cost

Q25

total manufactured 4,000 blocks MQV = SP (AQ - SQ)

total hardwood 11,000 feet MPV = AQ (AP - SP)
total cost of hardwood $18,700
hardwood per chopping block 2.5 feet SQ
standard price $1.80 per foot AQ
SP
AP

MQV -1800
MPV ($1,000.00)
($2,800.00)
Q26, 27

units of product machine rate 37.234042553

direct materials inspection rate 216.66666667
dirct labor setup rate 531.91489362
total direct labor hours
sales price

gross margin per unit ?

labor rate 34.5669291
77.9194428
gross margine per unit -2.07055724

101732.27
12.7165337
22.9665337

Q32
1 2 3 4 5
year 0 ($950) ($2,100) ($500) ($1,800) ($2,000)
year 1 $875 $1,600 $600 $1,500 $800
year 2 $550 $1,050 $200 $1,200 $700
year 3 $130 $900 $50 ($1,000) $600
year 4 $100 $50 $50 $1,000 $200
year 5 $75 $25 $50 $500 $100
cost of capital 14%
NPV $426.66 $761.51 $269.53 $615.94 ($184.28)
IRR 44% 37% 55% 34% 9%

Q37, 38
US 10 year 2.09%
market risk prememium 6.25%
rating of deb 1.23%

cost of debt 3.32%

cost of equity 6.46500%

total debt $56.96 B

total equity $254.93 B
total value $311.89

total cost of capital 0.05763305

MVA 91.15
164.07

Q39

Wall-E $588,000
useful life 6
EBITDA $265,000 value after depreciation $215,000
depreciation $98,000 tax $45,150
market value $340,000
value after tax $169,850
new tech price $750,000 + depreciation $319,850
useful llife 5
EBITDA $365,000
depreciation $150,000 year0 ($410,000)
year1 $89,920
tax rate 21% year2 $89,920
cost of capital 14% year3 $89,920
year4 $89,920
year5 $89,920

NPV ($101,297.36)
vidends to be paid each year amount paid PP amount arrears
2015 NA $0
2016 $0 $120,000
2017 $100,000 $140,000 every year 120K for preferred st
2018 $1,000,000 $740,000

CSP 1000000-260000 740000

riable cost per unit $9.60

tal variable cost $518,400.00

$1,068,400.00
$19.79

QV = SP (AQ - SQ) MQV = SP (AQ - SQ)

PV = AQ (AP - SP) MPV = AQ (AP - SP)
4,400 SQ 10,000
4,000 AQ 11,000
4.5 SP $1.80
$4.25 AP $1.70

MQV ($1,100.00)
MPV $1,800.00
$700.00
$167,000
$35,070

$131,930
$229,930
ery year 120K for preferred stocks
current asset revenu
account receivable $90,950 concession
cash $383,100 net franchise
marketable securities $90,640 merchandize sale
inventory $93,245 -- sale return
allowance of doubtful ($7,320) interest rev
prepaid expense $8,950
$650,615
Cogs

fixed asset
expense
accumulated depreciation ($377,100) advertising
land $740,000 supply
Equipment $329,300 rent
building $1,220,000 utilities
$1,912,200 depreciation
salaries
total assets $2,562,815 marketing

current liabilities
account payable $45,340 EBIT
Salaries payable $9,415 income tax
taxes payable $172,400 interest exp
deffereed revenu $1,920
current portion morg paya $22,000
current portion bond paya $16,200 net income
$267,275
RE
dividend declared

long-term liabilities
bond payable $338,000 Ending retain
notes payable $11,000
discount bond payable ($19,700)
mortgage payable $620,000
$949,300

total liabilities $1,216,575

$1,346,240
owners equity
common stock $51,000
--treasury stock ($22,000)
RE $1,306,390
$1,335,390
 $21,050
$1,520,000
$56,145
($3,200)
$1,700
$1,595,695

$32,000 $1,563,695

$54,000
$355
$49,300
$950
$54,100
$86,200
$117,000
$361,905

$1,201,790
$312,500
$92,900
$405,400

$796,390

$9,000

$1,306,390