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# HW5 - \$320,021 \$300,790 Facility Warehouse Bldg Land...

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Homework #5 Problem #1 If accounts payable is only for raw material FGI 6,664 + RMI 1,000 + A/R 16,660 - A/P 1,000 WC 23,324 If accounts payable is for raw material & overhead FGI 6,664 + RMI 1,000 + A/R 16,660 - A/P 1,666 WC 22,658

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Homework #5 Problem #2 Assume depreciation is for the full year first year, and the half year last year. Assume 100% occupancy Inflation Rate 2.5% Time Investment Deprec Rent Rev (N) Rent Rev (C-V) Cost (C-V) 0 \$12,500,000 1 \$160,256 \$3,455,778 \$3,371,490 \$(330,000) 2 \$320,513 \$3,455,778 \$3,289,259 \$(380,000) 3 \$320,513 \$3,455,778 \$3,209,033 \$(430,000) 4 \$320,513 \$3,455,778 \$3,130,764 \$(480,000) 5 \$15,839,715 \$160,256 \$3,455,778 \$3,054,404 \$(530,000) Cap Gain \$3,339,715 Book Value \$11,217,949 Ord Gain \$1,282,051
Op Inc (C-V) Op Inc. (N) Tax Inc Tax ATCF (N) ATCF (C-V) \$(12,500,000) \$(12,500,000) \$3,041,490 \$3,117,528 \$2,957,271 \$1,182,908 \$1,934,619 \$1,887,433 \$2,909,259 \$3,056,540 \$2,736,027 \$1,094,411 \$1,962,129 \$1,867,583 \$2,779,033 \$2,992,715 \$2,672,202 \$1,068,881 \$1,923,834 \$1,786,471 \$2,650,764 \$2,925,947 \$2,605,435 \$1,042,174 \$1,883,774 \$1,706,606 \$2,524,404 \$2,856,131 \$2,695,875 \$2,092,128 \$16,603,718 \$14,675,268 PW 0 Cap Gain Tax \$500,957 Ord Gain Tax \$512,821 Total \$1,013,778

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Year Rent (N) Rent (C-V) 1 \$5,759.63 \$5,619.15 2 \$5,759.63 \$5,482.10 3 \$5,759.63 \$5,348.39 4 \$5,759.63 \$5,217.94 5 \$5,759.63 \$5,090.67 Monthly rent \$5,759.63 Annual rent \$69,115.55
Homework #5 Problem #3 Inflation rate 0.03 Time Investment MACRS-7 Depr. Op Inc (CV) Op Inc (N) Tax Inc 0 \$(2,400,000) 1 0.1429 \$90,681 \$250,000 \$256,250 \$165,569 2 0.2449 \$160,912 \$250,000 \$262,656 \$101,745 3 0.1749 \$125,912 \$250,000 \$269,223 \$143,311 4 0.1249 \$100,912 \$250,000 \$275,953 \$175,042 5 0.0893 \$83,112 \$250,000 \$282,852 \$199,741 6 0.0892 \$83,062 \$250,000 \$289,923 \$206,862 7 0.0893 \$83,112 \$250,000 \$297,171 \$214,060 8 0.0446 \$60,762 \$250,000 \$304,601 \$243,839 9 \$38,462 \$250,000 \$312,216 \$273,754 10 \$750,000 \$19,231

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Unformatted text preview: \$320,021 \$300,790 Facility Warehouse Bldg Land Capital Invest \$500,000 \$1,500,000 \$250,000 SV (CV) \$50,000 \$700,000 \$500,000 SV (N) \$64,004 \$896,059 \$640,042 Book \$- \$1,134,615 \$250,000 Gain \$64,004 \$(238,556) \$390,042 Tax \$25,602 \$(95,422) \$58,506 Total Tax \$(11,314) Tax ATCF (N) ATCF (CV) \$(2,250,000) \$(2,250,000) \$66,228 \$190,022 \$185,388 \$40,698 \$221,958 \$211,263 \$57,324 \$211,898 \$196,769 \$70,017 \$205,937 \$186,568 \$79,896 \$202,956 \$179,383 \$82,745 \$207,179 \$178,649 \$85,624 \$211,547 \$177,968 \$97,536 \$207,065 \$169,948 \$109,502 \$202,714 \$162,319 \$109,002 #REF! #REF! PW #REF! No Total Homework #5 Problem #4 Asset Purchase Date Class Quarter Percentage Amt \$30,000 June 4 5-year 2 25.00% \$7,500.00 \$95,000 October 22 7-year 4 3.57% \$3,391.50 \$37,500 September 10 7-year 3 10.71% \$4,016.25 58% Mid-quarter convention is used. Year 2nd qtr, 5-yr 3rd qtr, 7-yr 4th qtr, 7-yr Amount 2007 0.25 0.11 0.04 \$14,907.75 2008 0.3 0.26 0.28 \$44,738.75 2009 0.18 0.18 0.2 \$30,928.50 2010 0.11 0.13 0.14 \$21,650.50 2011 0.11 0.09 0.1 \$16,436.50 2012 0.04 0.09 0.09 \$12,890.25 2013 0.09 0.09 \$11,616.00 2014 0.06 0.08 \$9,331.75 Homework #5, Problem #5 Time Elapsed Investment 4th qtr 5-yr 4th qtr 5-yr Deprec (N) Revenue (C-V) Revenue (N) (130,000) adjusted 1 0.1370 0.05 0.05 (6,500) \$5,479 \$5,498 2 1.1370 0.38 0.38 (49,400) \$40,000 \$41,139 3 2.1370 0.23 0.23 (29,640) \$40,000 \$42,167 4 3.1370 0.14 0.14 (17,784) \$40,000 \$43,222 5 4 20000 0.11 0.1 (12,444) \$34,521 \$38,104 Book Value 14,232 Salvage 22076.26 Gain 7,845 Tax Inc (N) Tax (N) ATCF (N) ATCF (C-V) \$(130,000) \$(130,000) \$(1,002) \$(401) \$5,899 \$5,879 \$(8,261) \$(3,304) \$44,443 \$43,213 \$12,527 \$5,011 \$37,156 \$35,247 \$25,438 \$10,175 \$33,047 \$30,583 \$33,504 \$13,402 \$46,779 \$42,379 PW at 15% (\$30,481.42)...
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HW5 - \$320,021 \$300,790 Facility Warehouse Bldg Land...

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