10. All expenses other than depreciation are paid in cash in the month they are incurred. If the

company has budgeted to sell 25,000 units of Product SW in July, then the total budgeted

selling and administrative expenses for July will be:

11.If the company has budgeted to sell 20,000 units of Product SW in October then the total

budgeted variable selling and administrative expenses for October will be:

12. If the budgeted cash disbursements for selling and administrative expenses for November total

P123,250, then how many units of Product SW does the company plan to sell in November

(rounded to the nearest whole unit)?

13.If the company has budgeted to sell 24,000 units of Product SW in September, then the total

budgeted fixed selling and administrative expenses for September would be:

14.The following year-end data pertain to Walkin Corporation

Net operating profit before taxes P31,250,000

Inventory 5,000,000

Long-term debt 40,000,000

Depreciation expense 9,000,000

Change in net working capital 5,000,000

Capital expenditures 8,000,000

Invested capital (net assets) 80,000,000

Weighted average cost of capital 10%

Tax rate 20%

What is the company's Economic Value Added (EVA)?

Using the previous information, what is the free cash flow for the year?

19.ABC Company, which operates a school canteen, is planning to buy a doughnut-making machine for

P300,000. The machine is expected to produce 36,000 units of doughnuts per year which can be

sold for P10 each. Variable cost to produce and sell the doughnut is P4 per unit. Incremental fixed

costs, exclusive of depreciation, is estimated at P56,000 per year. The doughnut-making machine

will be depreciated on a straight-line basis for 5 years to a zero salvage value. The company pays

income tax at a rate of 32%.

What is the expected annual return (accounting net income) to be earned from the

doughnut-making machine?

What is the annual net cash inflows from the doughnut-making?