Formulas and Tables Present Value of 1: PVF m,i = 1 / (1 + in Present Value of 1 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 14.0% 16.0% 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8772 0.8621 0.8900 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7695 0.7432 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6750 0.6407 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 0.5921 0.5523 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5194 0.4761 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4556 0.4104 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.3996 0.3538 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3506 0.3050 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606 0.3075 0.2630 10 0.5584 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.2697 0.2267 Present Value of an Ordinary Annuity of 1: PVA ni = i( 1 +i )" Present Value of an Ordinary Annuity of 1 - No Growth 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 14.0% 16.0% 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929 0.8772 0.8621 CO OO V O UI A W N 1.8334 1.8080 1.7833 1.7591 1.7355 1.7125 1.6901 1.6467 1.6052 2.6730 2.6243 2.5771 2.5313 2.4869 2.4437 2.4018 2.3216 2.2459 3.4651 3.3872 3.3121 3.2397 3.1699 3. 1024 3.0373 2.9137 2.7982 4.2124 4. 1002 3.9927 3.8897 3.7908 3.6959 3.6048 3.4331 3.2743 4.9173 4.7665 4.6229 4.4859 4.3553 4.2305 4.1114 3.8887 3.6847 5.5824 5.3893 5.2064 5.0330 4.8684 4.7122 4.5638 4.2883 4.0386 6.2098 5.9713 5.7466 5.5348 5.3349 5. 1461 4.9676 4.6389 4.3436 6.8017 6.5152 6.2469 5.9952 5.7590 5.5370 5.3282 4.9464 4.6065 10 7.3601 7.0236 6.7101 6.4177 6.1446 5.8892 5.6502 5.2161 4.8332Today is December 30, 2019, and the Board of Directors of XYZ Conglomerate Inc. is meeting to discuss the scal year that is about to end, and Whether there is anything that they can do to \"dress up\" their results for the year. XYZ is composed of two divisions Doing Fine Farms and Lagging Luxury Retailer. Results of the two divisions for the previous year and the year about to end, are as follows: Year-Ending mm Dec. 31 2018 Dec. 31 2019 Doing Fine Farms Revenues $ 5,000,000 $ 7,000,000 Less: Cost of Sales 3 000 000 4,000,000 Gross Prot 2,000,000 3,000,000 Less: Operating Expenses 600,000 800,000 Operating Income 1,400,000 2,200,000 Lagging Luxury Retailer Revenues $ 3,000,000 $ 2,000,000 Less: Cost of Sales 2 500 000 2 500 000 Gross Prot 500,000 4 500,000 ) Less: Operating Expenses 700,000 800,000 Operating Income 4 200,000) ( 1,300,000 ) XYZ Conglomerate has no M pays income taxes at the \"corporate level\" at a rate of 25% per year. Thus, the \"Consolidated Income Statement\" for XY Z for the year- ending December 31, 2018 appeared as follows: Year-Ending Dec. 31 2018 Revenues $ 8,000,000 Less: Cost of Sales 5,500,000 Gross Prot 2,500,000 Less: Operating Expense I 300 000 Pre-Tax Operating income 1,200,000 Income Taxes (@ 2511): 300,000 Net Income $ 920,000 Given the information on the previous page, please answer the following questions: Year-Ending Year-Ending Dec. 31, 2018 Dec. 31, 2019 Revenues Less: Cost of Sales Gross Profit Less: Operating Expense Pre-Tax Operating Income Income Tax (@ 25%) Income before Special Items Discontinued Operations? Net Income