A company recognized an accrued salary expense in Year 1 and paid its employees in Year 2. The financial statements affected in
1 answer:
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Answer:
days on inventory 57 + collection cycle 163- payment cycle 63
CCCT = 157 days
Explanation:
The cash-to-cash measures the times from the company paid his good from the time it collect from the customer:
days inventory outstanding + collection cycle - payment cycle
<u>days inventory outstanding:</u>
Where:
where:
COGS $ 1,790,000
Beginning Inventory: $ 273,000
Ending Inventory: $ 290,000
Average Inventory: $ 281,500
Inventory TO 6.358792185
Days on Inventory 57
<u>Collection cycle:</u>
where:
Purchases: 1,575,000
Beginning AP: 227,500
Ending AP: 316,200
Average AP: 271,850
AP TO 5.793636196
payment cycle 63
<u>Collection cycle</u>
Sales 102,000
Average AR 45,500
AR TO 2.241758242
collection cycle 163
Answer:
net present value NPV = $79800
so correct option is D) $79,800
Explanation:
solution
we knw that Net Present value = PV of cash inflow - PV of cash outflow ............1
so here PV of cash outflow = $300000
and Net sales = $200000
expenses = $80000
Depreciation =
Depreciation = $50000
so Net income before taxes = Net sales - Depreciation - expenses
Net income before taxes = $200000 - $80000 - $50000
Net income before taxes = $70000
and Tax expenses @ 40% = $28000
so
Net income = Net income before taxes - Tax expenses
Net income = $70000 - $28000
Net income = $42000
and
Depreciation = $50000
Net cash inflow = Net income + Depreciation
Net cash inflow = $42000 + $50000
Net cash inflow = $92000
and
PVIFA @ 10% 5 years = $3.7908
so
PV of cash inflow = $348755
PV of salvage value = $50000 ×0.6209
PV of salvage value = $31045
and
so here Total PV of total cash inflow = $379800
and
net present value NPV = Total PV of total cash inflow - PV of cash outflow
net present value NPV = $379800 - $300000
net present value NPV = $79800
so correct option is D) $79,800