Managerial Acctg Ch 25

Exercise 25-1 Name:

Section:

Enter the appropriate amount in the shaded cells below.

A red asterisk (*) will appear to the right of an incorrect amount in the outlined cells.

Testing Equipment Centrifuge

Estimated average annual income $2,625 2,450.00

Average investment $21,000 $28,000

Average rate of return 12.5% 8.75% *

Exercise 25-4 Name:

Section:

Enter the appropriate amount in the shaded cells below.

A red asterisk (*) will appear to the right of an incorrect amount in the outlined cells.

Year 1 Years 2 - 14 Last year

Initial investment $(238,000) $- $-

Operating cash flows:

Annual revenue $288,000 $288,000 $288,000

Selling expenses (14,400) (14,400) (14,400)

Cost to manufacture (156,400) (156,400) (156,400)

Net operating cash flows $117,200 $117,200 $117,200

Total for year 1 $(120,800)

Total for years 2 - 14 (operating cash flow) $117,200

Residual value 10,000

Total for last year $127,200

Exercise 25-6 Name:

Section:

Enter the appropriate amount in the shaded cells below.

A red asterisk (*) will appear to the right of an incorrect amount in the outlined cells.

a.

Initial investment: $550,000

Liquid Soap Cosmetics

Net Cash Flow Cumulative Net Cash Flows Net Cash Flow Cumulative Net Cash Flows

Year 1 $150,000 $150,000 $110,000 $110,000

Year 2...