Wine Depot has several questions for you that Excel can help answer.
1. The Wine Depot is planning for the future and would like you to prepare a present value analysis. Using the file ch7-07, complete a present value analysis for the following situations. Save the file as ch7-07_student_name (replacing student_name with your name). Print this completed worksheet.

The Wine Depot would like to know the following:
a. How much they would have to pay at the end of each year, assuming a 3 percent rate of return, to yield $85,000 at the end of 7 years.
b. How much they would have at the end of 7 years if they invested $8,000 today earning 3 percent per year.
c. How much they would have at the end of 7 years if they invested $550 at the end of each year earning 3 percent per year.
d. How much they would have to invest today to have $12,500 in 7 years, earning 3 percent per year.
2. The Wine Depot is trying to better understand the behavior of their selling expenses. They have accumulated selling expenses over the last 6 months and believe units sold are a good predictor of expense behavior. Selling expenses include commissions on sales and advertising. Use the file ch7-08 to complete a cost prediction worksheet. Save the file as ch7-08_stu-dent_name (replacing student_name with your name). The worksheet should do the following:
a. Calculate variable cost per unit sold, fixed costs, and a prediction of selling expense when 19,000 units are sold using the Hi-Lo method.
b. Calculate variable cost per unit sold, fixed costs, and a prediction of selling expense when 19,000 units are sold using the Least Squares/Regression method.
c. Display a chart of selling expense/units sold with a trend line. (Be sure to modify each axis so your scatter diagram is better displayed as you did earlier in this chapter.)
3. During a recent year, the Wine Depot had sales on account of $1,601,542, collections of $1,523,541, write-offs of $23,487, a beginning balance in accounts receivable of $758,271, and a beginning balance in the allowance for uncollectible accounts of $25,121. At year end, $734,539 of accounts receivable were current, $45,812 were 0–30 days past due, $21,012 were 31–60 days past due, $6,422 were 61–90 days past due, and $5,000 were over 90 days past due. The company believes 2.1 percent of sales will not be collected. They also have experience that suggests that 3 percent of all current receivables, 8 percent of receivables 0–30 days past due, 15 percent of receivables 31–60 days past due, 20 percent of receivables 61–90 days past due, and 40 percent of receivables over 90 days past due will not be collected. Using the file ch7-09, complete the allowance for uncollectible accounts analysis for both standard methods. Save the file as ch7-09_student_name (replacing student_name with your name). Print this completed worksheet.