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3 4 46.22 ang eBook The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $75,820 and annual net cash flows of $20,000 for each of the five years of its useful life. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 5.582 4.868 4.564 4.160 3.605 8 5.335 4.968 4.487 3.837 6.210 6.802 9 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return, If required, round your answer to three decimal places. Accoitiating numeric field. P 5 6 7 C
1 2 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return. If required, round your answer to three decimal places. b. Using the factor determined in part (a) and the present value of an annulty of $1 table above, determine the internal rate of return for the proposal. Previous Next > Check My Work 3 4 5 6 7
eBook Show Me How Profit Center Responsibility Reporting Championship Sports Inc. operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 2019, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales-Winter Sports Division $31,920,000 35,264,000 Sales-Summer Sports Division Cost of Goods Sold-Winter Sports Division 19.152,000 Cost of Goods Sold-Summer Sports Division 20,368,000 Sales Expense-Winter Sports Division 5,472,000 Sales Expense-Summer Sports Division 4,864,000 Administrative Expense-Winter Sports Division 3,192,000 Administrative Expense-Summer Sports Division 3,131,200 Advertising Expense 1,108,000 Transportation Expense 441,000 Accounts Receivable Collection Expense 197,400 Warehouse Expense 3,040,000 The bases to be used in allocating expenses, together with other information, are as follows: a. Advertising expense-incurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $520,000; Summer Sports Division, $588,000. b. Transportation expense-allocated to divisions at a rate of $15 per bill of lading: Winter Sports Division, 14,000 bills of lading; Summer Sports
Accounts Receivable Collection Expense 197,400 Warehouse Expense 3,040,000 The bases to be used in allocating expenses, together with other information, are as follows: a. Advertising expense-incurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $520,000; Summer Sports Division, $588,000. b. Transportation expense-allocated to divisions at a rate of $15 per bill of lading: Winter Sports Division, 14,000 bills of lading: Summer Sports Division, 15,400 bill of lading. c. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $7 per invoice: Winter Sports Division, 13,000 sales invoices; Summer Sports Division, 15,200 sales invoices. d. Warehouse expense-allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 140,000 square feet; Summer Sports Division, 180,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 2019 Summer Sports Division Sales 35.264.000 ✓ 20.368.000 V Cost of goods sold 14.096.000 ✓ Gross profit Divisional selling and administrative expenses: 4864.000 Divisional selling expenses Winter Sports Division 21.920.000 ✓ 19.152.000✔ 12.760.000 ✓ 5472.000✔
Divisional Income Statements For the Year Ended December 31, 20Y9 Winter Sports Division 31.920,000 ✓ 19,152,000 12.768,000 ✓ 5.472.000 ✔ 3.192.000 8.664.000 4.104.000 ✓ $20.000 ✓ 210.000 ✓ 91.000 ✓ 1.350.000 ✓ 2.151.000 ✓ 1.953,000 ✓ Sales Cost of goods sold Gross profit Divisional selling and administrative expenses: Divisional selling expenses Divisional administrative expenses Total divisional selling and administrative expenses Operating income before support department allocations Support department allocations: Advertising expense Transportation expense Accounts receivable collection expense Warehouse expense Total support department allocations Operating income Summer Sports Division 35,264,000 ✓ 20,368,000 ✓ 14.896,000 ✓ 4,864.000 ✓ 3.131,200 V 7.995.200 6.900.800 588.000 231,000 106,400 1710.000 ✓ 2635.400 4265.400 ✔
Championship Sports Inc. Support Department Allocations For the Year Ended December 31, 20Y9 Advertising expense Transportation rate per bill of lading Number of bills of lading Transportation expense Accounts receivable collection rate Number of sales invoices Accounts receivable collection expense Warehouse rate per sq. ft. Number of square feet Warehouse expense Feedback Check My Work Winter Sports Division Summer Sports Division 520.000 ✓ 588,000 210,000 ✓ 231.000 ✓ 91.000 ✓ 106.400 1.330.000 ✓ 1.710.000 ✓ 3.040.000 sportation rate (total charges a total bills of lading) by the number of bills Total 1.108.000 ✓ 441.000 ✓ 197400 ✔