HWA01 - Managerial ACG 2071 Spring 2006 Maximize f(x y = 8x...

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1 Managerial ACG 2071 Professor Lin Spring 2006 Solution #01 1. Maximize f(x, y) = 8x – x 2 + 10y – y 2 – xy (1) In Solver, the optimal solution is: x = 2 and y = 4. The objective function is 28. (2) Take derivatives, df(x,y)/dx = 8 – 2x – y = 0 df(x,y)/dy = 10 – 2y – x = 0 Solve the two equations with two unknowns. We get, x = 2 and y = 4. f(2, 4) = 28. 2. (1) 3-9 (a) and (b) (a) SL depreciation Income Statement Sales materials labor S&A depreciation (1389.93/3) Income Balance Sheet: cash plant & equip (net) total assets C/S RE Total equity year 1 1400 200 300 200 463.31 236.69 700 926.62 1626.62 1389.93 236.69 1626.62 year 2 1600 100 400 600 463.31 36.69 1200 463.31 1663.31 1389.93 273.38 1663.31 year 3 1500 0 300 600 463.31 136.69 0 0 0 0 0 0 Just before the liquidating dividend is declared the balance sheet shows: cash 1800 C/S 1389.93 410.07 1800
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2 (b) Cash basis accounting Income Statement: Sales materials labor S&A depreciation Balance Sheet: cash Plant & Equipment (net) C/S RE year 1 1400 200 300 200 1389.93 -689.93 700 0 700 1389.93 - 689.93 700 year 2 1600 100 400 600 0 500 1200 0 1200 1389.93 -189.93 1200 year 3 1500 0 300 600 0 600 0 0 0 0 0 0 Notice how the only difference is the accrual treatment of the capital asset. A more involved setting would recognize revenue in advance of collections, material
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This note was uploaded on 06/05/2011 for the course ACG 2071 taught by Professor Sumbiznatch during the Spring '06 term at University of Florida.

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HWA01 - Managerial ACG 2071 Spring 2006 Maximize f(x y = 8x...

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