Please see sample questions below:

Instructions: There are a total of five brief exercise, you only need to complete four. If you answer all four, I will take your highest four exercises you have completed; each question is worth 10 points.

Brief Exercise 1:

Jent Company reported the following information for 2013:

OctoberNovemberDecember

Budgeted sales$320,000$340,000$360,000

Budgeted purchases$120,000$128,000$144,000

All sales are on credit.

Customer amounts on account are collected 40% in the month of sale and 60% in the following month.

Instructions

Compute the amount of cash Jent will receive during November.

Brief Exercise 2:

Sable, Inc. has budgeted direct materials purchases of $400,000 in March and $500,000 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted:

Wages expense$120,000

Purchase of office equipment200,000

Selling and administrative expenses126,000

Depreciation expense18,000

Instructions

Compute the amount of budgeted cash disbursements for April.

Brief Exercise 3:

Beal, Inc. provided the following information:

MarchAprilMay

Projected merchandise purchases$65,000$75,000$80,000

Beal pays 40% of merchandise purchases in the month purchased and 60% in the following month.

General operating expenses are budgeted to be $20,000 per month of which depreciation is $2,000 of this amount. Beal pays operating expenses in the month incurred.

Instructions

Calculate Beal's budgeted cash disbursements for May.

Brief Exercise 4:

Diamond Company is considering investing in new equipment that will cost $1,400,000 with a 10-year useful life. The new equipment is expected to produce annual net income of $90,000 over its useful life. Depreciation expense, using the straight-line rate, is $140,000 per year.

Instructions

Compute the cash payback period.

Brief Exercise 5:

Madeline Company is proposing to spend $200,000 to purchase a machine that will provide annual cash flows of $38,000. The appropriate present value factor for 10 periods is 5.65.

Instructions

Compute the proposed investment's net present value and indicate whether the investment should be made by Madeline Company.