Option 1 Option 2 Option 3 Benefits $400,000 $550,000 $575,000 Disbenefits $78,000 $125,000 $180,000 Costs $235,000 $390,000 $480,000 Savings $25,000 $65,000 $90,000
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The city of Columbus has identified three options for a public recreation area suitable for informal family activities and major organized events. As with most alternatives today, there are benefits, disbenefits, costs, and some savings. These have been estimated with the help of an external planning consultant and are identified in the table below. In each case, these are annualized over a 10-year planning horizon. Solve, a. Determine the B/C ratio for each project. Can you tell from these ratios which option should be selected? b. Determine which option should be selected using the incremental B/C ratio. c. Determine which option should be selected using B − C for each option. d. At what value of Option 2 costs are you indifferent between Option 1 and Option 2?
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- part 3 4 solution needed Year Net cashflows 0 -575,000 1 £125,000 2 £248,000 3 £176,000 4 £146,000Q#3 Following in the adjusted trial balance of M/s Rizwan for the year 2020ACCOUNT TITLES DEBIT CREDITCash 150000Inventory 10,000Prepaid rent 50,000Office Supplies 60,000Land 900,000Building 800,000Accumulated Depreciation 40,000Accounts payable 80,000Salaries payable 55,000Long term loan 390,000Purchases 400,000Sales 600,000Purchase returns 18,000Sales returns 14,000Transportation-in 5,000Interest expense 2,000Salaries expense 44,000Depreciation expense 29,000Electricity expense 5,000Interest expense 5,000Interest payable 25,000Commission Income 22,000Capital 1,254,000Drawing 10000Total 2,484,000 2,484,000Inventory Closing Rs. 50,000REQUIRED a) Prepare Income Statement for the year ended December 31, 2020. b) Prepare Balance Sheet in classified account form as of December 31, 2020Q#3 Following in the adjusted trial balance of M/s Rizwan for the year 2020ACCOUNT TITLES DEBIT CREDITCash 150000Inventory 10,000Prepaid rent 50,000Office Supplies 60,000Land 900,000Building 800,000Accumulated Depreciation 40,000Accounts payable 80,000Salaries payable 55,000Long term loan 390,000Purchases 400,000Sales 600,000Purchase returns 18,000Sales returns 14,000Transportation-in 5,000Interest expense 2,000Salaries expense 44,000Depreciation expense 29,000Electricity expense 5,000Interest expense 5,000Interest payable 25,000Commission Income 22,000Capital 1,254,000Drawing 10000Total 2,484,000 2,484,000Inventory Closing Rs. 50,000REQUIRED a) Prepare Income Statement for the year ended December 31, 2020.
- Question 3 options: With the following information, fill in the blank given using the specified format (For example: $100,000) The net working capital is _______ Annual Sales Revenue $3,650,000 Accounts Payable 300,000 Accounts Receivable 400,000 Cash 35,000 Mortgage 95,000 Equipment 200,000 Short-term Loan 100,000 Goodwill 75,000 Inventory 500,000PROBLEM 1 ASSETS LIABILITIES OWNER’S EQUITY a. 760,000 360,000 ? b. 860,000 ? 592,000 c. ? 108,000 760,000 d. 626,600 376,240 ? e. ? 800,000 (100,000)Q No 5 Hassan textile anticipates reaching a sales level of Rs. 6 million in oneyear. The company expects earnings after taxes during the next year to equalRs.400,000. During the past several years, the company has been paying Rs.50,000 individends to its stockholders. The company expects to continue this policy for atleast the next year. The actual balance sheet and income statement for Hassan textile during 2018 follow. Hassan textile Ltd. Balance Sheet as of December 2018 Cash Rs. 200,000 Accounts payable Rs. 600,000 Account Receivables 400,000 Notes payable 500,000 Inventories 1,200,000 Long-term debt 200,000 Fixed Assets, net 500,000 Stockholders’ equity 1,000,000 Total Assets Rs. 2,300,000 Total liabilities and equity Rs. 2,300,000 Hassan textile Ltd. Income Statement for the Year ending December 2018 Sales Rs. 4,000,000 Expenses, including interest and taxes Rs. 3,700,000 Earnings after…
- A2 1 f Use the following information for Delta Corporation to answer question 1: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Accounts receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will…A2 1 g Use the following information for Delta Corporation to answer question 1: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Accounts receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will…A2 1 d Use the following information for Delta Corporation to answer question 1: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Accounts receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will…
- Question 1.2 I could only attach 2 pictures, the last picture has only 1 column "Cash and cash equivalent alent at the end of the year R36000" Calculate the amount of interest paid for the year ended 31 December 2020Company A Company B Company C Company D Company E December 31, 2019 Assets 162,000 189,000 118,125 121,500 351,000 Liabilities 101,250 135,000 67,500 74,250 ? December 31, 2020 Assets 175,500 249,750 432,000 ? 519,750 Liabilities 85,725 ? 182,250 108,000 202,500 During 2020 Net income ? 33,750 67,500 60,750 81,000 Investments 23,625 40,500 ? 81,000 0 Withdrawals 6,750 10,125 20,250 27,000 40,500 What was the owner’s equity of each of the five companies on December 31, 2019? What was the owner’s equity of each of the five companies on December 31, 2020 What was the amount of net income of Company A for 2020? How much is the liabilities owed by Company B on December 31, 2020? For Company C, calculate the amount of investments. How much is the total assets on December 31, 2020 of Company D? How much is the…ANSWER QUICK!! JUST THE ANSWERS!! NO EXPLANATIOn 10. a)During 20X2, ABC Inc earned $200,000 in service revenue, of which $120,000 was received in cash; the balance will be collected in January 20X3. The company's 20X2 income statement should show which of the following amounts for service revenue? $320,000 $200,000 $80,000 $120,000 b)Assume that a company's financial position on January 1, 2022 was: Assets, $40,000 and Liabilities, $15,000. During January 2022, the company completed the following transactions: (a) paid a “note payable”: $4,000 (without interest); (b) received payment from his client: $4,000; (c) paid supplier debts: $2,000; (d) purchased a truck, $1,000 in cash and $8,000 in Notes Payable. What is the financial situation of the company as of January 31, 2022?Question 9 options: Assets = $44,000 Liabilities = $17,000 Equity = $27,000 Assets = $43,000 Liabilities = $18,000 Equity = $25,000 Assets = $42,000 Liabilities = $17,000 Equity = $25,000 Assets = $42,000…