Q1

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow $ 68, 000 $ 7, 000 $ 8, 000 $ 14, 000 to 21, 000 22, 000 A tAtA 25, 000 BOOVOUTAWNY 23, 000 $ 21, 000 19, 000 18, 000 $ 18, 000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the payback period of the investment. Note: Round your answer to 1 decimal place. Payback period yearsYear Investment Cash Inflow $ 68, 000 $ 7, 000 $ 8, 000 $ 14, 000 $ 21, 000 22, 000 $ 25 , 000 6 0 VOUTAWNY 23, 000 $ 21, 000 LA 19, 000 $ 18, 000 $ 18, 000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Would the payback period be affected if the cash inflow in the last year were several times as large? Would the payback period be affected?The management of Kunkel Company is considering the purchase of a $29,000 machine that would reduce operating costs by $6,500 per year. At the end of the machine's five-year useful life, it will have zero salvage value. The company's required rate of return is 16%. Click here to View Exhibit 781 and Exhibit 782, to determine the appropriate discount factor(s) using table. Required: 1. Determine the net present value of the investment in the machine. 2. What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life ofthe machine? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the net present value of the investment in the machine. Note: Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount. Use the appropriate table to determine the discount factor(s). Net present value Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the net present value of the investment in the machine. Note: Negative amounts should be indicated by a minus sign. Round your nal answer to the nearest whole dollar amount. Use the appropriate table to determine the discount factor(s). _:| Information on four investment proposals is given below: Investment Proposal A B C Investment required $ (900,000) $ (170,000) $ (90,000) Present value of cash inflows 1,263,600 233,400 136,500 Net present value $ 353:5\" $ 53.4% $ 45.500 Life of the project 5 years 7 years 6 years Required: 1. Compute the protability index for each investment proposal Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. D $ (1,430,000) 1,908,300 $ 478,300 6 years Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: April May June Total Budgeted sales (all on account) $ 430,000 $ 630,000 $ 200,000 $ 1,260,000 From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $360,000, and March sales totaled $390,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter; 2. What is the accounts receivable balance on June 30th? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. February sales March sales April sales May sales June sales Total cash collections Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the accounts receivable balance on June 30th? Weller Company's budgeted unit sales for the upcoming scal year are provided below: lst Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 22.000 23.000 20.000 20.000 The company's variable selling and administrative expense per unit is $2.10. Fixed selling and administrative expenses include advertising expenses of $15,000 per quarter, executive salaries of $41,000 per quarter, and depreciation of $21,000 per quarter. In addition, the company will make insurance payments of $4,000 in the first quarter and $4,000 in the third quarter. Finally, property taxes of $6,400 will be paid in the second quarter. Required: Prepare the company's selling and administrative expense budget for the upcoming scal year. Note: Round "Per Unit" answers to 2 decimal places. Variable selling and administrative expense per unit Variable selling and administrative expense Fixed selling and administrative expenses: Total xed selling and administrative expenses Total selling and administrative expenses Cash disbursements for selling and administrative expenses _