I started these problems (all the info on the spreadsheet is all the info I've been given) and I've just gotten frustrated. Looking for answers explained in a way I can follow along, as I will need to know the material for the final exam. My biggest struggle is how little info is given and knowing how to use it to find what I need... Attached is a spreadsheet of the problems.

For problem 1 A I tried to solve like this:

Divs expected in May = 12000

May Sales 80,000/12000 = 6.6$

Collections in April = $75000 6% + Sales of April = $4500 +$75000 = $79500

Collections in May = $80000 6% + May Sales = $4800 +$80000 =84,800

Collections in June = $80000 6% + Sales of June = $4800 +$80000 =84,800

For problem 1 B I tried to solve:

April: 79500- 4500 - 12000 = $63,000 May: 84800 - 4800 - 7000 = $73000 June: 84800 - 4800 = $80000

None of those answers seemed right, I feel like I am missing some major info.. Help is much appreciated, thanks.

Managerial Accounting Computational Problem 1 Computational Problem 2 Make the following Changes: Assume sales for the months are now estimated as: Sales Change Equipment Purchases Now: April $12,000 May $7,000 How Much When ($1,200,000) now Working Capital Required (released at end of project) $400,000 now - released at the end of the project Increased Receipts from Donations (cash inflow) $300,000 years 1-5 Cost to Operate (outflows) $25,000 years 1-5 Cost Savings (inflow) April $75,000 May $80,000 June $80,000 July $60,000 Item $125,000 years 1-5 Upgrade of System Required (outflow) $175,000 year 3 Disposal Value when sold $100,000 end of project - year 5 Cost of System Cost of Capital 10% Dividends change to in May $12,000 Because they are tax exempt, ignore taxes and depreciation For the months of April, May and June, complete the: a) Schedule of expected cash collections b) Inventory purchase budget c) Schedule of cash disbursements for purchases d) Schedule of cash disbursements for expenses e) Cash Budget Put your answer in the space provided, attach your spreadsheet. 1) What is the Net Present Value of the Project? 2) What is the Internal Rate of Return of the Project? 3) Explain whether you would recommend the project and why. Managerial Accounting Computational Problem 1 Computational Problem 2 Make the following Changes: Assume sales for the months are now estimated as: Sales Change Equipment Purchases Now: April $12,000 May $7,000 How Much When ($1,200,000) now Working Capital Required (released at end of project) $400,000 now - released at the end of the project Increased Receipts from Donations (cash inflow) $300,000 years 1-5 Cost to Operate (outflows) $25,000 years 1-5 Cost Savings (inflow) April $75,000 May $80,000 June $80,000 July $60,000 Item $125,000 years 1-5 Upgrade of System Required (outflow) $175,000 year 3 Disposal Value when sold $100,000 end of project - year 5 Cost of System Cost of Capital 10% Dividends change to in May $12,000 Because they are tax exempt, ignore taxes and depreciation For the months of April, May and June, complete the: a) Schedule of expected cash collections b) Inventory purchase budget c) Schedule of cash disbursements for purchases d) Schedule of cash disbursements for expenses e) Cash Budget I FEEL SOME INFORMATION WAS NOT GIVEN Put your answer in the space provided, attach your spreadsheet. 1) What is the Net Present Value of the Project? -153073 2) What is the Internal Rate of Return of the Project? 6.28% 3) Explain whether you would recommend the project and why. The project should not be undertaken as it has a negative present value , Equally the irr is lower than the cost of capital -1200000 -400000 1254141 -104512 522558.8 -145775 73746.65 159.6995 Question 1 It is not possible to compute critical information is missing : a) No indication of the amount of sales that will be on cash basis b) No opening stocks and clossing stocks c) Depends on computations in (b) d) No information for expected expenses for the periods e) There are no balance brought forward for the months, budgeted cash sales receipts question 2 1.PRESENT VALUE Initial cash outlay chnge in working capital donations operation costs cost saving upgrade disposal value PV -1200000 outflow -400000 the present value of an 1137236.0308 present value of audina -94769.669235 present value of audina 473848.34618 present value of audina -131480.09016 present value of single o 62092.132306 present value of single i -153073.25009 2. IRR Method 1traial and error -1200000 NB: CLICK IN THE CEL Initial cash outlay -400000 chnge in working capital 1254141.1314 donations -104511.76095 operation costs 522558.80474 cost saving -145775.1213 upgrade 73746.64565 disposal value 159.69952396 PV FOR IRR, USING THE TRIAL AND ERROR METHOD WHERE A VALUE LESS THAN THE ONE USED FOR DISCOUNTING THE VALUE OF THE PV OBTAINED IS ALMOST EQUAL TO Z method two, formula method since the NPV is negative , chose any discounting value that will gi Initial cash outlay chnge in working capital donations operation costs cost saving upgrade disposal value PV -1200000 -400000 1298843.0012 -108236.91677 541184.58383 -151171.57974 78352.616647 58971.705156 IRR= FOMULA=A THE ANSWE NB: THE TR 7.003418 n outflow released at emd of 5 years ary annuity ary annuity ary annuity e outflow e inflow LL TO SEE THE FORMULA E SINCE THE PV IS NEGATIVE, THE PV IS USED REPETITIVELY UNTIL ZERO. give a positive NPV, in this case 5% A%+(NPV A/(NPV B-NPV ))*(B%-A%) WERS ARE SLIGHTLY DIFFERENT BECAUSE BOTH METHODS ARE ESTIMATIONS RIAL AND ERROR IS ACCURATE IN THIS CASE WHEN USING EXCELL, IF THE CALCULATIONS ARE MANUAL, THE FORMULA IS ADVISED Managerial Accounting Computational Problem 1 Computational Problem 2 Make the following Changes: Assume sales for the months are now estimated as: Sales Change Equipment Purchases Now: April $12,000 May $7,000 How Much When ($1,200,000) now Working Capital Required (released at end of project) $400,000 now - released at the end of the project Increased Receipts from Donations (cash inflow) $300,000 years 1-5 Cost to Operate (outflows) $25,000 years 1-5 Cost Savings (inflow) April $75,000 May $80,000 June $80,000 July $60,000 Item $125,000 years 1-5 Upgrade of System Required (outflow) $175,000 year 3 Disposal Value when sold $100,000 end of project - year 5 Cost of System Cost of Capital 10% Dividends change to in May $12,000 Because they are tax exempt, ignore taxes and depreciation For the months of April, May and June, complete the: a) Schedule of expected cash collections b) Inventory purchase budget c) Schedule of cash disbursements for purchases d) Schedule of cash disbursements for expenses e) Cash Budget I FEEL SOME INFORMATION WAS NOT GIVEN Put your answer in the space provided, attach your spreadsheet. 1) What is the Net Present Value of the Project? -153073 2) What is the Internal Rate of Return of the Project? 6.28% 3) Explain whether you would recommend the project and why. The project should not be undertaken as it has a negative present value , Equally the irr is lower than the cost of capital -1200000 -400000 1254141 -104512 522558.8 -145775 73746.65 159.6995 Question 1 It is not possible to compute critical information is missing : a) No indication of the amount of sales that will be on cash basis b) No opening stocks and clossing stocks c) Depends on computations in (b) d) No information for expected expenses for the periods e) There are no balance brought forward for the months, budgeted cash sales receipts question 2 1.PRESENT VALUE Initial cash outlay chnge in working capital donations operation costs cost saving upgrade disposal value PV -1200000 outflow -400000 the present value of an 1137236.0308 present value of audina -94769.669235 present value of audina 473848.34618 present value of audina -131480.09016 present value of single o 62092.132306 present value of single i -153073.25009 2. IRR Method 1traial and error -1200000 NB: CLICK IN THE CEL Initial cash outlay -400000 chnge in working capital 1254141.1314 donations -104511.76095 operation costs 522558.80474 cost saving -145775.1213 upgrade 73746.64565 disposal value 159.69952396 PV FOR IRR, USING THE TRIAL AND ERROR METHOD WHERE A VALUE LESS THAN THE ONE USED FOR DISCOUNTING THE VALUE OF THE PV OBTAINED IS ALMOST EQUAL TO Z method two, formula method since the NPV is negative , chose any discounting value that will gi Initial cash outlay chnge in working capital donations operation costs cost saving upgrade disposal value PV -1200000 -400000 1298843.0012 -108236.91677 541184.58383 -151171.57974 78352.616647 58971.705156 IRR= FOMULA=A THE ANSWE NB: THE TR 7.003418 n outflow released at emd of 5 years ary annuity ary annuity ary annuity e outflow e inflow LL TO SEE THE FORMULA E SINCE THE PV IS NEGATIVE, THE PV IS USED REPETITIVELY UNTIL ZERO. give a positive NPV, in this case 5% A%+(NPV A/(NPV B-NPV ))*(B%-A%) WERS ARE SLIGHTLY DIFFERENT BECAUSE BOTH METHODS ARE ESTIMATIONS RIAL AND ERROR IS ACCURATE IN THIS CASE WHEN USING EXCELL, IF THE CALCULATIONS ARE MANUAL, THE FORMULA IS ADVISED