Question
In: Finance
Please do on excel and screenshot with formulas. You are examining the desirability of selling widgets....
Please do on excel and screenshot with formulas.
You are examining the desirability of selling widgets. To conduct the analysis, you’ve estimated that you will sell 1 million units and will sell the units for $99 each for the next five years. The variable costs for producing this product is estimated to be $32 per unit. Fixed costs will be $3 million per year. The equipment used to produce the widgets will cost $20 million and will be depreciated using the MACRS depreciation schedule for a five-year useful life. In year 5, the equipment will be sold for 20% of its original cost. The tax rate is 21%. Construct a proforma income statement to find the net income and operating cash flow for each of the five years of the project.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
you are examining the desirability of selling widgets. To conduct the analysis, you’ve estimated that you...
you are examining the desirability of selling widgets. To
conduct the analysis, you’ve estimated that you will sell 1 million
units and will sell the units for $99 each for the next five years.
The variable costs for producing this product is estimated to be
$23 per unit. Fixed costs will be $5 million per year. The
equipment used to produce the widgets will cost $30 million and
will be depreciated using the MACRS depreciation schedule for a
five-year useful...
1. You are examining the desirability of selling widgets. To conduct the analysis, you’ve estimated that...
1. You are examining the desirability of selling widgets. To
conduct the analysis, you’ve estimated that you will sell 1 million
units and will sell the units for $99 each for the next five years.
The variable costs for producing this product is estimated to be
$32 per unit. Fixed costs will be $3 million per year. The
equipment used to produce the widgets will cost $20 million and
will be depreciated using the MACRS depreciation schedule for a
five-year...
Kindly do on excel and screenshot with formulas. 1. You are ready to buy a house...
Kindly do on excel and screenshot with formulas.
1. You are ready to buy a house and you have $50,000 for a down
payment and closing costs. Closing costs are estimated to be 3.5%
of the loan value. You have an annual salary of $200,000. The bank
is willing to allow your housing costs – mortgage, property tax,
and homeowners insurance to be equal to 28% of your monthly income.
You have estimated that property tax will be $1,000/month and...
PLEASE UPLOAD EXCEL FILE OR A SCREENSHOT SHOWING FORMULAS Must be submitted in excel with any...
PLEASE UPLOAD EXCEL FILE OR A SCREENSHOT SHOWING FORMULAS
Must be submitted in excel with any math done with formulas
within cells.
The Jackpots Dreams Cards Company is a card manufacturer. All
direct materials and conversion costs are applied to all of Proball
Trading Cards’ products at an even rate throughout the
manufacturing process. For August, the beginning work in process
inventory for the Finishing Department was 9,600 units that
averaged 65 percent complete. Ending work in process inventory was...
PLEASE UPLOAD EXCEL FILE OR A SCREENSHOT SHOWING FORMULAS Must be submitted in excel with any...
PLEASE UPLOAD EXCEL FILE OR A SCREENSHOT SHOWING FORMULAS
Must be submitted in excel with any math done with formulas
within cells.
Electric Car Co (ECC). currently manufactures two different
types of fully electronic cars in 2021. Type 8Y is a large SUV
whereas Type 8W will be the fastest car in the world with 10 rocket
thrusters. ECC has decided to use ABC costing instead of
traditional costing. The 2021 budget to manufacture these new types
include manufacturing overhead...
PLEASE SHOW ON EXCEL ALONG WITH FORMULAS 10. A stock is selling today for $30. The...
PLEASE SHOW ON EXCEL ALONG WITH FORMULAS
10. A stock is selling today for $30. The stock has an annual
volatility of 70 percent and the annual risk-free rate is 11
percent. 7
a. Calculate the fair price for a 9 month European call option
with an exercise price of $25.
b. Calculate the intrinsic value for a 9 month European call
option with an exercise price of $25.
c. Calculate the time value for a 9 month European call...
Can you do in excel please and show the formulas Lunar Motivation Corporation Income Statement ($...
Can you do in excel please and show the
formulas
Lunar Motivation Corporation
Income Statement ($ in millions)
2019
Sales 8000
Cost
of
Goods -5600
SGA -1500
Interest -100
EBT 800
Taxes
(40%) -320
Net
income 480
Dividends -100
Retained
earnings 380
====
Lunar Motivation Corporation
Balance Sheet
2019 2019
Cash 10 Accounts
payable 300
Accounts
receivables 400 Notes
payable 300
Inventory 560 Current
liabilities 600
Short term
Investments 30 Long-term
debt 1000
Current
assets 1000 Common
stock 400
Net plant &
equip. 3000 Retained
earnings 2000
Total
assets 4000 Total
liab. & equity 4000
===== =====
You have forecasted Lunar Motivation Corporation (LMC) free cash
flow in 2020 to be...
Can you please show me how to do this on excel with formulas. I am having...
Can you please show me how to do this on excel with formulas. I
am having a difficult time understanding how to incorporate the
depreciation into the problem! Thank you
You are evaluating two different milling machines to replace
your current aging machine. Machine A costs $248868, has a
three-year life, and has pretax operating costs of $58935 per year.
Machine B costs $406397, has a five-year life, and has pretax
operating costs of $33004 per year. For both milling...
Can you do in excel please and show Formulas The Air Marshal Co. has recently completed...
Can you do in excel please and show Formulas
The Air Marshal Co. has recently completed a $10,000,000
two-year marketing study. Based on the results of this
study, Air Marshal has estimated that 800 units of its new security
electro-optical human scanning hardware, known as "Marshal Dillon,"
could be sold annually over the next 12 years, at a price of
$110,000 the first year with an estimated 2% annual rise from
inflation in years 2-6. The sales price is expected to
drop...
Can you do in excel please and show Formulas The Air Marshal Co. has recently completed...
Can you do in excel please and show Formulas
The Air Marshal Co. has recently completed a $10,000,000
two-year marketing study. Based on the results of this
study, Air Marshal has estimated that 800 units of its new security
electro-optical human scanning hardware, known as "Marshal Dillon,"
could be sold annually over the next 12 years, at a price of
$110,000 the first year with an estimated 2% annual rise from
inflation in years 2-6. The sales price is expected to
drop...
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