管理会计试卷.docx

FinalExamforManagerialAccountingCapitalBudgetingDecisionsThereare2majorquestionsonthistopic.Pleaseanswerallrelatedquestions.1.OxfordCompanyhaslimitedfundsavailableforinvestmentandmustrationthefundsamongfourcompetingprojects.Selectedinformationonthefourprojectsfollows:ProjectInvestmentRequiredNetPresentValueLifeoftheProject(years)InternalRateofReturnA$160,000$44,323718%B$135,000$42,0001216%C$100,000$35,035720%D$175,000$38,136322%Thenetpresentvaluesabovehavebeencomputedusinga10%discountrate.Thecompanywantsyourassistanceindeterminingwhichprojecttoacceptfirst,second,andsoforth.Required:1. Computetheprojectprofitabilityindexforeachproject.2. Inorderofpreference,rankthefourprojectsintermsof:a. Netpresentvalue.b. Projectprofitabilityindex.c. Internalrateofreturn.3. Whichrankingdoyouprefer?Why?2.CaseyNelsonisadivisionalmanagerforPigeonCompany.Hisannualpayraisesarelargelydeterminedbyhisdivision,sreturnoninvestment(ROI),whichhasbeenabove20%eachofthelastthreeyears.Caseyisconsideringacapitalbudgetingprojectthatwouldrequirea$3,500,000investmentinequipmentwithausefullifeoffiveyearsandnosalvagevalue.PigeonCompany,sdiscountrateis16%.Theprojectwouldprovidenetoperatingincomeeachyearforfiveyearsasfollows:Sales$3,400,000Variableexpenses1.600,000Contributionmargin1,800,000Fixedexpenses:Advertising,salaries,$700,000andotherfixedOUt-OJpocketcostsDepreciation$700、OoOTotalfixedexpenses1400,000Netoperatingincome$400.000Required:1. Whatistheproject'snetpresentvalue?2. Whatistheproject'sinternalrateofreturntothenearestwholepercent?3. WouldthecompanywantCaseytopursuethisinvestmentopportunity?WouldCaseybeinclinedtopursuethisinvestmentopportunity?Explain.ProfitPlanningThereisonemajorquestionsonthistopic.Pleaseanswerallrelatedquestions.(Usingthepercent-of-salesmethodofforecasting)TullyAppliances,Inc.,projectsnextyear,ssalestobe$20million.Currentsalesareat$15million,basedoncurrentassetsof$7millionandfixedassetsof$8million.Thefirm,snetprofitmarginis5percentaftertaxes.Tulleyforecaststhatcurrentassetswillriseindirectproportiontotheincreaseinsalesbutthatfixedassetswillincreasebyonly$150,000.Currently,Tulleyhas$1.5millioninaccountspayable(whichvarydirectlywithsales),$7millioninlong-termdebt(duein10years),andcommonequity(including$4millioninretainedearnings)totalling$6.5million.TuIleyplanstopay$500,000incommonstockdividendsnextyear.Required:1. WhatareTully,stotalfinancingneeds(thatis,totalassets)forthecomingyear?2. Giventhefirm,sprojectionsanddividendpaymentplans,whatareitsdiscretionaryfinancingneeds?3. Basedonyourprojectionsandtheassumptionthatthe$150,000expansioninfixedassetswilloccur,whatisthelargestincreaseinsalesthefirmcansupportwithouthavingtoresorttotheuseofdiscretionarysourcesoffinancing?DifferentialAnalysis:TheKeytoDecisionMakingThereisonemajorquestionsonthistopic.Pleaseanswerallrelatedquestions.CharterSportsEquipmentmanufacturesround,rectangular,andoctagonaltrampolines.Salesandexpensedataforthepastmonthfollow:Managementisconcernedaboutthecontinuedlossesshownbytheroundtrampolinesandwantsarecommendationastowhetherornotthelineshouldbediscontinued.Thespecialequipmentusedtoproducethetrampolineshasnoresalesvalue.Iftheroundtrampolinemodelisdropped,thetwolinesupervisorsassignedtothemodelwouldbedischarged.TotalTrampolineRoundRectangularOctagonalSales$1,000,000$140,000$500,000$360,000Variableexpenses41SOOQ0.(X)Q200OQ5090QContributionmargin590,00080,000300,OOO210,00。Fixedexpenses:Advertising-traceable216,00041,000110,00065,000Depreciationofspecialequipment95,00020,00040,00035,000Linesupervisors,salaries19,0006,0007,0006,000,Generalfactoryoverhead200,00028,00000,00072,000Totalfixedexpenses53(OOO95、(X)O257、OoO178,000Netoperatingincome(loss)$60.000$(15.000)$43,000$32,000StatementofCashFlowsThereisonemajorquestionsonthistopic.Pleaseanswerallrelatedquestions.ThecashflowstatementsforretailinggiantBigBox,Inc.,spanningtheperiod2022-2022areasfollows:US$millions12/31/202212/31/202212/31/202212/31/2022Netincome13,000.0012,000.0011,000.0010,000.00Depreciationexpense6,500.006,300.005,000.004,000.00Changesinworkingcapital1,200.002,300.002,400.001,000.00Cashflowfromoperatingactivities20.7(M)0()20.600.()()18.40()015.000.()0Capitalexpenditures16,()().0014.500.00-14,000.00二12,300.00Cashflowfrominvestingactivities-16,000.00-14,500.00-14,000.00-12,300.00Interestandfinancingcashflowitems350.00250.00350.00100.00Totalcashdividendspaid-3,600.00-2,800.002,500.00-2,200.00Issuance(retirement)ofstock,net-8,00().001,500.0()3,6(X).(X)-4,5(X).00Issuance(retirement)ofdebt,net1,500.00-100.004,(XX).(X)4,100.00Cashflowfromfinancingactivities-10,450.00-4,650.00-2,450.00