Answer:
b.1.08.
Explanation:
The computation of the present value index is shown below;
As we know that
Present Value Index = Present value of Net Cash Inflow ÷ Initial Cash outflow
where,
Initial investment = $420,000
And, the present value of net cash inflows are
Year Cash Flow (in $) PVF at 10% Present Value (in $)
1 180,000 0.909 163,620
2 120,000 0.826 99,120
3 100,000 0.751 75,100
4 90,000 0.683 61,470
5 90,000 0.621 55,890
TOTAL 455,200
So, the present value index is
= $455,200 ÷ $420,000
= 1.08
Answer:
See below
Explanation:
Preparation of traditional income statement
Sales $600 × 6,700. $40,20,000
Less variable cost
Answer: it would have cost, more money for the employees and about 70% buy at least on whole food per trip. ( so sorry if this does make sense)
Explanation:
Answer:
$248,000
Explanation:
Given that 20% of sales are for cash, Of the credit sales, 10% are collected during the month of sale, 30% in the following month, and 60% in the second following month. It means that credit sales is 80% of sales.
Cash collection for January will include 20% sales in January, 8% (10% * 80%) sales in January, 24% (30% *80%) sale in December and 48% (60% * 80%) of sales in November.
The forecasted amount of total CASH COLLECTIONS FROM SALES in January
= 20% * $200,000 + 8% * $200,000 + 24% * $400,000 + 48% * $200,000
= $40,000 + $16,000 + $96,000 + $96,000
= $248,000
