Answer:
Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400
Explanation:
Provided cost of Proposal Y = $512,000
Residual Value = $0
Depreciation will not be considered as we need to consider the present value of future cash flows, depreciation does not involve any cash flow.
Useful life = 4 years
Estimated cash inflow per year = $110,000
Discount rate = 9%
Present Value of an Ordinary Annuity = 3.240 @ 9% for 4 years
Thus present value of future cash inflows = $110,000 X 3.240 = $356,400
Note: Net Present Value = Present Value of Cash Inflows - Present Value of Cash Outflow = $356,400 - $512,000 = -$155,600
Final Answer
Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400
Answer:
Accounts receivable more than 60 days = $39,500
% of accounts receivable = 11.07%
Explanation:
The following table shows the aging schedule-
Customer Amount Owed ($) Age (days)
ABC $47,150 32
DEF 37,500 7
GHI 18,900 14
KLM 72,000 28
NOP 41,450 43
QRS 16,000 11
TUV 84,300 58
WXY 39,500 75
We have to develop a schedule with a 15 days incremental through 60 days. And we show which customers are falling in that category -
0-15 (DEF + GHI + QRS) = $(37,500 + 18,900 + 16,000) = $72,400
16-30 (KLM) = $72,000
31-45 (ABC + NOP) = $(47,150 + 41,450) = $88,600
46-60 (TUV) = $84,300
Over 60 (WXY) = $39,500
Accounts receivable more than 60 days = $39,500
Percentage of Accounts receivable = 
= 11.07%
Answer:
An employer is required to accrue a liability for employee's right to receive compensation for future absences when certain conditions are met and as a result it makes it a requirement for a liability to be accrued for vacation benefits that employees have earned but have not yet taken.
In the given case, employer offers each of its 50 employees 20 vacation days per year. As of January, each employee has earned 1.5 days. The Vacation days which are unused at the end of the year may be carried forward to the next year. There is no anticipation of any forfeitures.
Therefore employer must record a liability for employees vacation days earned so far for presenting true and fair view of the financial statements.
Improved efficiency.
A study shows that downsizing lowered customer satisfaction -
Another study shows that downsizing increased efficiency, but nothing of employee productivity.
