ACCT 556 Week 4 Homework Problems For more course tutorials visit www . tutorialrank . com
4 . Overhead budget For the quarter ( quarter totals only ), prepare the : 5 . Cost of goods manufactured budget ===============================================
ACCT 556 Week 4 Homework Problems For more course tutorials visit www . tutorialrank . com
Week 4 Capital Budgeting Practice problem :
You have the following data about a proposed project : Cost of new equipment $ 80,000
Increase need for Working Capital ( to be released at end of project ) $ 20,000
Length of project 6 years Salvage Value of equipment at end of project $ 8,000
Annual cash savings if equipment is purchased ( cash inflows ) $ 28,500
Tax rate 35 % Discount rate required of all investements 14 % Required : 1 . What is the annual accounting income ?