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?