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Shown below are the budgeted sales for Tyson Company for the first five months of the current year. All sales are made on account. January
Shown below are the budgeted sales for Tyson Company for the first five months of the current year. All sales are made on account. January February Budgeted Sales ??????? March April May ??????? ??????? $43,700 $62,000 On average, 25% of the sales are collected in the month of sale, 20% are collected in the month following sale, 45% are collected in the second month following sale, and the remaining 10% is collected three months after the month of sale. Tyson Company had budgeted cash collections from customers of $46,847 in April and $63,115 in May. Tyson's budgeted accounts receivable at May 31 totaled $78,445. Calculate Tyson Company's budgeted sales in January. XYZ Company is considering the purchase of a new piece of equipment and has gathered the following information about the purchase: Initial investment Annual cost savings Salvage value in 8 years Repair in 5 years ... Working capital needed now Cost of capital ... ? $38,000 20% of initial investment $16,000 $31,000 14% Life of project 8 years The working capital needed now will be released for investment elsewhere at the end of the eight years. The net present value of the new equipment is -$26,656. Calculate the salvage value for this piece of equipment. You will need to use the present value table factors posted in carmen to answer this question. To access these factors, click modules and then scroll to week 13. Click on the link labeled present value table factors. No credit will be given for this question using a means other than these posted table factors to answer this
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