Answer:
$59,309
Explanation:
Years  Cash flow   PV Factor at 10%   Present value of cash flows
0         225,000                1.00000                    225,000
1          75,000                   0.90909                    68,182
2          75,000                  0.82645                    61,983
3          75,000                  0.75131                       56,349
4          75,000                  0.68301                      51,226
5          75,000                  0.62092                     <u>46,569</u>
Benefit of remodeling project                          <u>$59,309</u> 
Note: Year 0 PV factor = 1/(1+10%)^0 = 1
 
        
             
        
        
        
Answer:
      NPV  =$ 60,311.80 
Explanation:
<em>The net present value (NPV) of a project is the present value of cash inflow  less the present value of cash outflow of the project.</em>
NPV = PV of cash inflow - PV of cash outflow
We can set out the cash flows of the project using the table below:
                                                   0                  1                   2                 3            
Operating cash flow                                136,000     136,000    136,000
Initial cost                              (274,000)
Working capital                     (61,000 )                                          61,000
Salvage value                        <u>               </u>    <u>             </u>      <u>           </u>      1<u>5000  </u>               
 Net cashflow                     <u> (335,000)  136,000      136,000      212,000.</u>
PV  inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)
        =  395,311.80 
NPV =395,311.80 -335,000
        =$ 60,311.80 
 
        
             
        
        
        
1. False
2. False
3. True
4. False 
5. false 
6. False 
7. True 
8. False 
9. True
10. False
        
             
        
        
        
Answer:
AdCreate billed Anchor Motors $529,412 for the third quarter in 2010
Explanation:
The advertizing company usually takes a 15% commision
Which means from the total amount billed to customer 15% ar commision which means:
money paid to media + 15% comission of the billed amount= total amount billed
450,000 + 0.15X = X
Now, we try to solve for X and get the amount billed to anchor motors.
X = 450,000/.85 =<em> 529.411,76</em>
 
        
             
        
        
        
What amount should be recorded as Bad Debt Expense for the current year?
Not yet due:
22,000
Estimated Percentage Uncollectible: 3%
Estimated Amount Uncollectible: 660
Up to 120 days past due:
6500
Estimated Percentage Uncollectible: 14%
Estimated Amount Uncollectible: 
910
Over 120 days past due:
2800
Estimated Percentage Uncollectible: 34%
Estimated Amount Uncollectible: 952
Estimated Balance in allowance for doubtful accounts: 2522
Current balance in allowance for doubtful accounts: 1200
Bad Debt Expense for the Year: 1322