CHAPTER 26 WORKPAPERS

CHAPTER 26 WORKPAPERS - Name Section Date Chapter 26 Brief...

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Unformatted text preview: Name Section Date Chapter 26 Brief Exercises BE26-1 1 The correct order is: 2 3 1. 4 2. 5 3. 6 4. 7 8 9 10 BE26-2 11 12 13 14 15 16 17 18 19 20 21 BE26-3 22 23 24 25 26 27 28 29 30 31 BE26-4 32 33 34 35 36 37 38 39 40 1309 Alternative A Alternative B Net Income Increase (Decrease) Reject Order Accept Order Net Income Increase (Decrease) Make Buy Net Income Increase (Decrease) 1309 pter 26 Brief Exercises 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1309 1309 Name Section Date Chapter 26 Brief Exercises Continued BE26-5 1 2 3 4 5 6 7 8 9 10 11 BE26-6 12 13 14 15 16 17 18 19 20 BE26-7 21 22 23 24 25 26 27 28 29 30 31 BE26-8 32 33 34 35 36 37 38 39 40 Sell Process Further Net Income Increase (Decrease) Retain Equipment Replace Equipment Net 4-Year Income Increase (Decrease) Continue Eliminate Net Income Increase (Decrease) Project A Project B 1310 1310 es Continued 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1310 1310 Name Section Date Chapter 26 Brief Exercises Concluded 1 BE26-9 2 3 4 5 6 BE26-10 7 8 9 10 11 12 13 14 15 BE26-11 16 17 18 Project A: 19 20 21 22 23 Project B: 24 25 26 27 28 29 30 BE26-12 31 32 33 34 35 BE26-13 36 37 38 39 40 1311 Cash Flows Discount Factor Present Value Present Value 1311 f Exercises Concluded 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1311 1311 Name Section Date Exercise 26-1 Pender 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1312 1312 Exercise 26-1 Pender 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1312 1312 Name Section Date E26-2 Reject Order Accept Order Exercises 26-2 and 26-3 (a) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 (b) 15 16 17 18 19 20 E26-3 21 22 (a) 23 24 25 26 27 28 29 30 31 (b) 32 33 34 35 (c) 36 37 38 39 40 1313 Net Income Increase (Decrease) Reject Order Accept Order Net Income Increase (Decrease) 1313 xercises 26-2 and 26-3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1313 1313 Name Section Date E26-4 Exercises 26-4 and 26-5 (a) 1 2 3 4 5 6 7 8 (b) 9 10 11 12 (c) 13 14 15 16 17 18 19 20 E26-5 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Make Buy Net Income Increase (Decrease) Make Buy Net Income Increase (Decrease) Sell (Basic Kit) Process Further (Stage 2 Kit) Net Income Increase (Decrease) 1314 1314 26-4 and 26-5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1314 1314 Name Section Date E26-6 Process Further Exercises 26-6 and 26-7 (a) 1 2 3 4 5 6 7 8 9 10 11 12 (b) 13 14 15 16 17 18 19 20 E26-7 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1315 Sell Net Income Increase (Decrease) Retain Machine Replace Machine Net Income Increase (Decrease) 1315 xercises 26-6 and 26-7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1315 1315 Name Section Date E26-8 Exercises 26-8 and 26-9 Continue 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 E26-9 18 (a) 19 20 21 (b) 22 23 24 25 26 27 28 29 30 (c) 31 32 33 34 35 36 37 38 39 40 1316 Eliminate Net Income Increase (Decrease) Stunner Double-Set Total 1316 26-8 and 26-9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1316 1316 Name Section Date Exercise 26-10 Freese Company (a) 1 2 3 4 5 (b) 6 7 8 (c ) 9 (1) 10 11 12 13 14 15 16 17 (2) 18 19 20 21 22 23 24 25 26 27 A Product B C A Product B C Product B 1317 1317 Exercise 26-10 Freese Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1317 1317 Name Section Date E26-11 Exercises 26-11 and 26-13 1 (a) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 (b) 16 17 18 19 20 21 22 23 24 25 E26-13 26 (a) (1) Annual rate of return: 27 28 29 (2) Cash payback: 30 31 32 (b) 33 34 Item 35 36 37 38 39 40 Amount Years PV Factor Present Value 1318 1318 11 and 26-13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1318 1318 Name Section Date (a) Computation of each project's payback periodAA Annual Cash Cumulative Year Investment Inflow Cash Inflow 1 0 22,000 2 1 3 2 4 3 5 Total 6 Cash payback (b) Computation of each project's net present valueAA Discount Cash Present Year Factor Inflow Value 1 1 2 2 3 3 4 Total present value 5 Investment 6 Net present value 7 8 9 10 Exercise 26-12 Suzaki Manufacturing Company BB Annual Cash Inflow Cumulative Cash Inflow Annual Cash Inflow CC Cumulative Cash Inflow 1 2 3 4 5 6 Cash payback Cash payback BB Cash Inflow Present Value Cash Inflow CC Present Value 1 2 3 4 5 6 7 8 9 10 1319 1319 Name Section Date (a) Exercise 26-14 Omega Company 1 2 3 4 5 6 7 8 9 10 11 12 (b) 13 14 15 16 17 18 19 20 Project Investment (Income + Depreciation) Internal Rate of Return Factor Closest Discount Factor Internal Rate of Return 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1320 1320 Name Section Date Exercise 26-15 (a) 1 Project A: 2 3 4 5 6 Project B: 7 8 9 10 11 12 (b) 13 14 15 16 (c) 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1321 Cash Flows Discount Factor Present Value 1321 Exercise 26-15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1321 1321 Name Section Date Problem 26-1A Korte Company (a) 1 2 3 4 5 6 (b) 7 8 9 10 (c) Reject Order 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Accept Order Net Income Increase (Decrease) 1 (d) 2 3 (e) 4 5 1322 6 1322 roblem 26-1A orte Company 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 4 5 1322 6 1322 Name Section Date (a) Problem 26-2A Martinez Manufacturing Company Make 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 (b) 22 23 24 25 26 27 28 29 30 31 32 33 34 35 (c) 36 37 38 39 40 1323 Buy Net Income Increase (Decrease) Make Buy Net Income Increase (Decrease) 1323 Problem 26-2A anufacturing Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1323 1323 Name Section Date (a) Problem 26-3A Deskins Manufacturing Company Denver 1 2 3 4 5 6 7 (b) Tacoma (1) Denver Division 1 2 3 4 5 6 7 8 (2) Tacoma Division 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Continue Eliminate Net Income Increase (Decrease) 1324 1324 roblem 26-3A ing Company 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1324 1324 Name Section Date (c) Problem 26-3A Concluded Deskins Manufacturing Company Deskins Manufacturing Company CVP Income Statement For the Quarter Ended March 31, 2008 Divisions Miami 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 (d) San Diego Tacoma Total 1 2 3 4 5 1325 1325 blem 26-3A Concluded anufacturing Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1 2 3 4 5 1325 1325 Name Section Date Problem 26-4A Timmons Corporation 1 (a) Annual rate of return 2 Project Brown 3 4 Project Red 5 6 Project Yellow 7 8 9 (b) Cash payback period 10 Project Red 11 12 13 Project Brown Project Yellow 14 Cumulative 15 Year Cash Inflow Cash Inflow Year Cash Inflow 16 1 1 17 2 2 18 3 3 19 4 4 20 5 5 21 22 Cash payback Cash payback 23 24 25 26 (d) Annual Net 27 Rate of Cash Present 28 Project Return Payback Value 29 Brown 30 Red 31 Yellow 32 33 34 35 36 37 38 39 40 1326 Cumulative Cash Inflow 1326 roblem 26-4A s Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1326 1326 Name Section Date (c) Project Red Problem 26-4A Concluded Timmons Corporation Item Amount Years PV Factor Present Value 1 2 3 4 1 2 3 4 5 6 7 8 9 10 11 12 13 Year 1 2 3 4 5 Net Present Value Project Brown Discount Cash Factor Inflow PV Project Yellow Cash Inflow PV 1 2 3 4 5 6 7 8 9 10 11 12 13 1327 1327 Name Section Date (a) Problem 26-5A Wichita Day Care Center 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Item (1) Annual Net Income (2) Annual Cash Inflow 1 (b) (1) Annual rate of return 2 3 4 5 (2) Cash payback period 6 7 8 9 (c) Net present value10 11 12 13 14 15 (d) 16 17 18 19 20 Cash Flows PV Factor PV 1328 1328 roblem 26-5A y Care Center 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1328 1328 Name Section Date (a) Cash Flows 9% Discount Factor Problem 26-6A Aqua Tech Testing (1) Option A: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Present Value (2) Cash Flows 10% Discount Factor Present Value (1) Option B Cash Flows 9% Discount Factor Present Value 1329 1329 Problem 26-6A Aqua Tech Testing 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1329 1329 Name Section Date (a) (Continued) Cash Flows Problem 26-6A Concluded Aqua Tech Testing (2) Option B: 1 2 3 4 5 6 7 8 9 (b) 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1330 12% Discount Factor Present Value 1330 6A Concluded Tech Testing 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1330 1330 Name Section Date (a) Reject Order 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 (b) 27 28 29 30 31 (c) 32 33 34 35 36 (d) 37 38 39 40 1331 Accept Order Problem 26-1B Houston Inc. Net Income Increase (Decrease) 1331 Problem 26-1B Houston Inc. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1331 1331 Name Section Date (a) Make WISCO 1 2 3 4 5 6 7 8 9 10 11 12 13 (b) 14 15 16 17 18 19 (c) 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 (d) 36 37 38 39 40 1332 Problem 26-2B Edgerton Manufacturing Company Buy WISCO Net Income Increase (Decrease) Make WISCO Buy WISCO Net Income Increase (Decrease) 1332 roblem 26-2B ing Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1332 1332 Name Section Date (a) Problem 26-3B Plott Manufacturing Company Division III 1 2 3 4 5 6 7 (b) Division IV (1) Division III 1 2 3 4 5 6 7 8 9 10 (2) Division IV 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1333 Continue Eliminate Net Income Increase (Decrease) 1333 Problem 26-3B anufacturing Company 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1333 1333 Name Section Date (c) Plott Manufacturing Company CVP Income Statement For the Quarter Ended March 31, 2009 Divisions I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (d) II Problem 26-3B Concluded Plott Manufacturing Company III Total 1 2 3 4 1334 5 1334 3B Concluded ing Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 1334 5 1334 Name Section Date Problem 26-4B Lapham Corporation 1 (a) Annual rate of return 2 Project Tic 3 4 Project Tac 5 6 Project Toe 7 8 9 (b) Cash payback period 10 Project Tic 11 12 13 Project Tac 14 15 Year Cash Inflow 16 1 17 2 18 3 19 4 20 5 21 22 Cash payback 23 24 25 26 (d) 27 28 Project 29 Tic 30 Tac 31 Toe 32 33 34 35 36 37 38 39 40 Project Toe Cumulative Cash Inflow Year 1 2 3 4 5 Cash payback Cash Inflow Cumulative Cash Inflow Annual Rate of Return Cash Payback Net Present Value 1335 1335 Problem 26-4B Lapham Corporation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1335 1335 Name Section Date (c) Project Tic Problem 26-4B Concluded Lapham Corporation Item Amount Years PV Factor Present Value Year 1 2 3 4 5 Net Present Value Project Tac Discount Cash Factor Inflow PV Project Toe Cash Inflow PV 1336 1336 Name Section Date (a) Problem 26-5B Marie Dunston, Entrepreneur 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Item (1) Annual Net Income (2) Annual Cash Flow 1 (b) (1) Annual rate of return 2 3 4 5 (2) Cash payback period 6 7 8 9 (c) Net present value 10 11 12 13 14 15 (d) 16 17 18 19 20 1337 Cash Flows PV Factor PV 1337 Problem 26-5B Dunston, Entrepreneur 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1337 1337 Name Section Date (a) Cash Flows 11% Discount Factor Problem 26-6B Carolina Clinic (1) Option A: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Present Value (2) Cash Flows 12% Discount Factor Present Value (1) Option B Cash Flows 11% Discount Factor Present Value 1338 1338 roblem 26-6B Carolina Clinic 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1338 1338 Name Section Date (a) (Continued) Cash Flows Problem 26-6B Concluded Carolina Clinic (2) Option B: 1 2 3 4 5 6 7 8 9 (b) 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1339 15% Discount Factor Present Value 1339 blem 26-6B Concluded Carolina Clinic 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1339 1339 Name Section Date (a) Chapter 26 Decision Making Across the Organization Morganstern Company Retain Old Machine 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Purchase New Machine Net Income Increase (Decrease) 1340 1340 Organization ern Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 1340 1340 Name Section Date Chapter 26 Decision Making Across the Organization Concluded Morganstern Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (b) (c) (d) Cash Flows PV Factor PV (e) 1341 1341 rganization Concluded Morganstern Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1341 1341 Name Section Date (a) Chapter 26 Managerial Analysis Barone Company Make 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (b) 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1342 Buy Silver Star Buy Sigma 1342 erial Analysis one Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1342 1342 Name Section Date (c) Chapter 26 Managerial Analysis Concluded Barone Company 1 2 3 4 5 6 7 8 9 10 1343 1343 al Analysis Concluded Barone Company 1 2 3 4 5 6 7 8 9 10 1343 1343 Name Section Date Chapter 26 Real-World Focus Beverly Hills Fan Company (a) 1 2 3 4 5 6 7 8 9 (b) 10 11 12 13 14 15 1344 1344 -World Focus Fan Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1344 1344 Name Section Date Chapter 26 Exploring The Web Campbell Soup Company (a) 1 2 3 4 5 6 7 8 9 10 (b) 11 12 13 14 15 16 17 18 19 20 (c) 21 22 23 24 25 26 27 28 29 30 1345 1345 26 Exploring The Web mpbell Soup Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1345 1345 Name Section Date Chapter 26 Communication Activity Carleton Service Center 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1346 1346 cation Activity ervice Center 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 1346 1346 Name Section Date Chapter 26 Ethics Case DeVito Company (a) 1 2 3 4 5 6 7 8 9 10 11 (b) 12 13 14 15 16 17 18 19 20 21 (c) 22 23 24 25 26 27 28 29 30 1347 1347 hapter 26 Ethics Case DeVito Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1347 1347 Name Section Date Chapter 26 All About You Activity Fortune Article 1 (a) 2 3 4 (b) 5 6 7 8 9 10 (c) 11 12 13 14 15 16 17 (d) 18 19 20 21 22 (e) 23 24 25 26 27 28 29 30 1348 1348 ut You Activity ortune Article 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1348 1348 ...
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This note was uploaded on 05/01/2008 for the course ACC 2302 taught by Professor Ryan during the Spring '08 term at Angelo State.

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