Adeva, Maria Kathreena Andrea H.

BSA 2-11

Chapter 7: Financial Planning (continuation)

MC Problems

20 A. 60,500
Collection from:
July 50,000 x 15%
August 70,000 x 50%
September 60,000 x 30%
Cash receipts for September

21 B. 7,100
Purchases:
February 5,000 x 70%
March 12,000 x 30%
Amount to be paid to suppliers in March

22 C. 21,100
Paid to suppliers in March (see no. 21)
Labor cost, 15% of March sales 20,000 x 15%
Other operating costs 15,000 - 4,000
Amount to be disbursed for operations in March

23 D. 14,000
Sales from:
February 10,000 x 60%
March 20,000 x 40%
Amount to be collected from customers in March

24 A. 2,900
Cash balance, March 1
Add: collections in March (see no. 23)
Less: payments in March (see no. 22)
Deficiency
Add: Required borrowing 3,500+14,000-21,000-2,500-500
Cash balance, March 31

Chapter 8: Time Value of Money

MC Problems

3 D. 30,416.25
Face value
Multiply by FV 1.04^5
Total amount at the end of five years

6 C. 385,392
Face value 50,000 × 1/2
Multiply by FVOA, even [(1.13^9) - 1] / 13%
Total amount at the end of nine years

7 D. 435,493
Face value 50,000 × 1/2
Multiply by FVAD [(1.13^9) - 1] / 13% × (1.13)
Total amount at the beginning of the next nine years

8 D. 142,857
Face value
Divide by PV of Perpetuity
Present value

11 B. 7,718
*use PV of 1 at 11%
Y1 1.11^-1 = 0.9009 x 1,000
Y2 1.11^-2 = 0.81162 x 2,000
Y3 1.11^-3 = 0.7312 x 3,500
Y4 1.11^-4 = 0.6587 x 4,000
Present value of the net cash flow

18 C. 11,358.24
Face value
Multiply by FV [1 + (8% / 12)] ^ 7 x 12
Total amount at the end of seven years

20 A. 3,820.32
Total amount at the end of three years:
Face value 20,000
Multiply by FV 1.06^3 1.19102
Less: face value
Compounded interest
21 D. 23.62
Future value
Divide by face value
Total

Less:
Annual rate of return

23 B. 9.22 years
Future value
Multiply by annual rate
Total
Divide by face value
Total
Add:
Total
log 4.16 / log 1.18

30 Face value
Multiply by *constant
Total

Time and interest 5% x 20 yrs

Ending value after 20 years
 7,500
35,000
18,000
60,500

3,500
3,600
7,100

7,100
3,000
11,000
21,100

6,000
8,000
14,000

3,500
14,000
-21,100
-3,600
6,500
2,900
 25,000
1.21665
30,416.25

25,000
15.41571
385,392.75

25,000
17.41975
435,493.75

10,000
0.07
142,857.14

901
1,623
2,559
2,635
7,718

6,500
1.747421
11,358.24

23,820.32
20,000.00
3,820.32
 500
60
8.333333333333
^
0.10
1.23618
1.00
23.62%

10,000,000
18%
1,800,000
500,000
3.6
1
4.6
9.22

15,000
2.7183
40,774.5
^
1
40,774.5