Problem 12-1

Problem 12-1 - Cost of equipment less residual value...

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Problem 12-1 Name: Kristin VanStrate Section: Score: 100% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. 1. Proposal to Operate Warehouse March 1, 2010 Differential revenue from alternatives: Revenue from operating warehouse $4,270,000 Revenue from investment in bonds 735,000 Differential revenue from operating warehouse $3,535,000 Differential cost of alternatives: Costs to operate warehouse $2,730,000
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Unformatted text preview: Cost of equipment less residual value 674,000 Differential cost of operating warehouse 3,404,000 Differential income from operating warehouse $131,000 2. Should the proposal to operate the warehouse be accepted? Yes 3. Total estimated revenue from operating warehouse $4,270,000 Total estimated expenses to operate warehouse: Costs to operate warehouse, excluding depreciation $2,730,000 Cost of warehouse equipment less residual value 674,000 3,404,000 Total estimated income from operating warehouse $866,000 Instructions...
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