The following income statement and balance sheets for Laser World are provided: LASER WORLD Income Statement For the year-ended December 31, 2021 Sales revenue $2,280,000 Cost of goods sold 1,540,000 Gross profit 740,000 343, eee Depreciation expense 64,000 Interest expense Income tax expense 23,000 51.000 Net Income 254,700 LASER WORLD Balance Sheet December 31 2021 2020 Assets Current assets: $127,000 Accounts receivable Inventory Prepaid rent Long-term assets! 160,000 15,890 $110,000 88,888 140,000 15,90 320,000 298.682 (79,000) $925,000 260,000 240.000 (49,000) $796,000 Equipment Accumulated depreciation Total assets dabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable $ 56,000 3.600 15,400 $ 55,600 7.600 12,800 340,000 240,000 Retained earnings Total Habilities and equity 130,000 375.000 $925,000 130,000 359,600 $795,000 Assuming that all sales were on account, calculate the following risk ratios for 2021 (Assume 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.) 4. SALALAH LLC has project proposal for the production of Mats. The following scenarios are considered. Use the given information to calculate the NPV of two scenarios. (2.5+2.5 = 5 marks) Worst-Case Scenario Best-Case Scenario Sales Volume 800,000 units Sales Volume 1,300,000 units Sales Price 900bz Sales Price 1200bz Initial investment OMR 860,000 Initial investment OMR 780,000 Project life 3 years Project life 4 years Discount rate 17% Discount rate Labour Cost OMR 176,000 Labour Cost OMR 247,000 Materials Cost OMR 360,000_Materials Cost OMR 494,000 Overhead Cost OMR 88.000 Overhead Cost OMR 117,000 The initial investment consists of investment in machines, which will have a zero (0) scrap value at the end of the four- year life of the project. The following income statement and balance sheets for Laser World are provided: LASER WORLD Income Statement For the year-ended December 31, 2021 Sales revenue $2,280,000 Cost of goods sold 1,540,000 Gross profit 740,000 343, eee Depreciation expense 64,000 Interest expense Income tax expense 23,000 51.000 Net Income 254,700 LASER WORLD Balance Sheet December 31 2021 2020 Assets Current assets: $127,000 Accounts receivable Inventory Prepaid rent Long-term assets! 160,000 15,890 $110,000 88,888 140,000 15,90 320,000 298.682 (79,000) $925,000 260,000 240.000 (49,000) $796,000 Equipment Accumulated depreciation Total assets dabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable $ 56,000 3.600 15,400 $ 55,600 7.600 12,800 340,000 240,000 Retained earnings Total Habilities and equity 130,000 375.000 $925,000 130,000 359,600 $795,000 Assuming that all sales were on account, calculate the following risk ratios for 2021 (Assume 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.) 4. SALALAH LLC has project proposal for the production of Mats. The following scenarios are considered. Use the given information to calculate the NPV of two scenarios. (2.5+2.5 = 5 marks) Worst-Case Scenario Best-Case Scenario Sales Volume 800,000 units Sales Volume 1,300,000 units Sales Price 900bz Sales Price 1200bz Initial investment OMR 860,000 Initial investment OMR 780,000 Project life 3 years Project life 4 years Discount rate 17% Discount rate Labour Cost OMR 176,000 Labour Cost OMR 247,000 Materials Cost OMR 360,000_Materials Cost OMR 494,000 Overhead Cost OMR 88.000 Overhead Cost OMR 117,000 The initial investment consists of investment in machines, which will have a zero (0) scrap value at the end of the four- year life of the project
