In: Accounting
#42
Beloved Baby Company manufactures and sells children's strollers. Each stroller requires eight screws. For September, Beloved Baby Company will begin September with 400
screws in its beginning inventory. Beloved Baby Company has budgeted stroller sales of 540
strollers, while 640
strollers are scheduled to be produced. How many screws should Beloved Baby Company purchase in September?
#43
Your wealthy neighbor has promised to give you $2,500
a year at the end of each of the next four years to help with college. Using a discount rate of 6%,
the present value of the gift can be stated as
stroller | 1 | 8 | |||
1) | |||||
Particulars | Amount | ||||
op bal | 400 | ||||
budget sales | 540 | ||||
to be produced | 640 | ||||
screws | 8 | ||||
total screws needed | 5120 | ||||
op bal | 400 | ||||
to be purchased | 4720 | ||||
(5120-400) | |||||
2) | |||||
No of year | amount | dis factor | Present value | ||
1 | $2,500.00 | 0.943396226 | $2,358.49 | ||
2 | $2,500.00 | 0.88999644 | $2,224.99 | ||
3 | $2,500.00 | 0.839619283 | $2,099.05 | ||
4 | $2,500.00 | 0.792093663 | $1,980.23 | ||
PVCI | $8,662.76 | ||||
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