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 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
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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
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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 $250,000
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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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