solution
hifsa shaukat
mira121.xlsxSol. 1
| BENEFIT-COST RATIO ANALYSIS FOR ALL 3 ALTERNATIVES | |||||||||||
| Alternative 1 - 2 Stories | Alternative 2 - 5 Stories | Alternative 3 - 10 Stories | |||||||||
| Year | CASH FLOWS | P.V Factor | PV of Cash Flows | CASH FLOWS | P.V Factor | PV of Cash Flows | CASH FLOWS | P.V Factor | PV of Cash Flows | ||
| 0 | $ (500,000.00) | 1.000 | $ (500,000.00) | $ (900,000.00) | 1.000 | $ (900,000.00) | $ (2,200,000.00) | 1.000 | $ (2,200,000.00) | ||
| 1 | $ 70,000.00 | 0.926 | $ 64,814.81 | $ 105,000.00 | 0.926 | $ 97,222.22 | $ 256,000.00 | 0.926 | $ 237,037.04 | ||
| 2 | $ 70,000.00 | 0.857 | $ 60,013.72 | $ 105,000.00 | 0.857 | $ 90,020.58 | $ 256,000.00 | 0.857 | $ 219,478.74 | ||
| 3 | $ 70,000.00 | 0.794 | $ 55,568.26 | $ 105,000.00 | 0.794 | $ 83,352.39 | $ 256,000.00 | 0.794 | $ 203,221.05 | ||
| 4 | $ 70,000.00 | 0.735 | $ 51,452.09 | $ 105,000.00 | 0.735 | $ 77,178.13 | $ 256,000.00 | 0.735 | $ 188,167.64 | ||
| 5 | $ 70,000.00 | 0.681 | $ 47,640.82 | $ 105,000.00 | 0.681 | $ 71,461.24 | $ 256,000.00 | 0.681 | $ 174,229.30 | ||
| 6 | $ 70,000.00 | 0.630 | $ 44,111.87 | $ 105,000.00 | 0.630 | $ 66,167.81 | $ 256,000.00 | 0.630 | $ 161,323.42 | ||
| 7 | $ 70,000.00 | 0.583 | $ 40,844.33 | $ 105,000.00 | 0.583 | $ 61,266.49 | $ 256,000.00 | 0.583 | $ 149,373.54 | ||
| 8 | $ 70,000.00 | 0.540 | $ 37,818.82 | $ 105,000.00 | 0.540 | $ 56,728.23 | $ 256,000.00 | 0.540 | $ 138,308.83 | ||
| 9 | $ 70,000.00 | 0.500 | $ 35,017.43 | $ 105,000.00 | 0.500 | $ 52,526.14 | $ 256,000.00 | 0.500 | $ 128,063.74 | ||
| 10 | $ 70,000.00 | 0.463 | $ 32,423.54 | $ 105,000.00 | 0.463 | $ 48,635.32 | $ 256,000.00 | 0.463 | $ 118,577.53 | ||
| 11 | $ 70,000.00 | 0.429 | $ 30,021.80 | $ 105,000.00 | 0.429 | $ 45,032.70 | $ 256,000.00 | 0.429 | $ 109,794.01 | ||
| 12 | $ 70,000.00 | 0.397 | $ 27,797.96 | $ 105,000.00 | 0.397 | $ 41,696.94 | $ 256,000.00 | 0.397 | $ 101,661.12 | ||
| 13 | $ 70,000.00 | 0.368 | $ 25,738.85 | $ 105,000.00 | 0.368 | $ 38,608.28 | $ 256,000.00 | 0.368 | $ 94,130.67 | ||
| 14 | $ 70,000.00 | 0.340 | $ 23,832.27 | $ 105,000.00 | 0.340 | $ 35,748.41 | $ 256,000.00 | 0.340 | $ 87,158.03 | ||
| 15 | $ 70,000.00 | 0.315 | $ 22,066.92 | $ 105,000.00 | 0.315 | $ 33,100.38 | $ 256,000.00 | 0.315 | $ 80,701.88 | ||
| 16 | $ 70,000.00 | 0.292 | $ 20,432.33 | $ 105,000.00 | 0.292 | $ 30,648.50 | $ 256,000.00 | 0.292 | $ 74,723.96 | ||
| 17 | $ 70,000.00 | 0.270 | $ 18,918.83 | $ 105,000.00 | 0.270 | $ 28,378.24 | $ 256,000.00 | 0.270 | $ 69,188.85 | ||
| 18 | $ 70,000.00 | 0.250 | $ 17,517.43 | $ 105,000.00 | 0.250 | $ 26,276.15 | $ 256,000.00 | 0.250 | $ 64,063.75 | ||
| 19 | $ 70,000.00 | 0.232 | $ 16,219.84 | $ 105,000.00 | 0.232 | $ 24,329.77 | $ 256,000.00 | 0.232 | $ 59,318.29 | ||
| 20 | $ 270,000.00 | 0.215 | $ 57,928.02 | $ 405,000.00 | 0.215 | $ 86,892.02 | $ 656,000.00 | 0.215 | $ 140,743.62 | ||
| NPV OF BENEFIT | $ 730,179.96 | $ 1,095,269.94 | $ 2,599,265.02 | ||||||||
| BENEFIT-COST RATIO (NPV/COST) | 1.46 | 1.22 | 1.18 | ||||||||
| ACCEPTED | |||||||||||
Sol. 2
| 1) | A $5,000 invoice for concrete charged to a job (transaction completed)? | |||
| ACCOUNT | CHANGE IN AMOUNT ($) | |||
| BALANCE SHEET | ||||
| Account Payable - Trade | 5,000.00 | Increase | ||
| Current Period Net - Income | 5,000.00 | Decrease | ||
| INCOME STATEMENT | ||||
| CONCRETE - Materials | 5,000.00 | Increase | ||
| Profit | 5,000.00 | Decrease | ||
| 2) | A $1,352 bill for office rent (transaction pending) | |||
| ACCOUNT | CHANGE IN AMOUNT ($) | |||
| BALANCE SHEET | ||||
| Account Payable - Trade | 1,352.00 | Increase | ||
| Current Period Net - Income | 1,352.00 | Decrease | ||
| INCOME STATEMENT | ||||
| Office Rent | 1,352.00 | Increase | ||
| Profit | 1,352.00 | Decrease | ||
| 3) | A $375 invoice for repairs to a backhoe (transaction completed) | |||
| ACCOUNT | CHANGE IN AMOUNT ($) | |||
| BALANCE SHEET | ||||
| Accruals - Repairs & Maintenance | 375.00 | Increase | ||
| Accruals - Repairs & Maintenance | 375.00 | Decrease | ||
| Cash | 375.00 | Decrease | ||
| INCOME STATEMENT | ||||
| Repair & Maintenance Expense | 1,352.00 | Increase | ||
Sol. 3
| What are the changes to the contractor’s balance sheet and income statement as a result of | ||||
| billing a client $368,264 for a job (transaction pending). The bill includes $249,996 for work | ||||
| performed last month and $118,268 for the retention withheld from the previous month’s | ||||
| payment. (show the changes using T tables) (10 points) | ||||
| ACCOUNT | CHANGE IN AMOUNT ($) | |||
| BALANCE SHEET | ||||
| Account Payable - Trade | 249,996.00 | Increase | ||
| Account Payable - Retention | 118,268.00 | Increase | ||
| Current Period Net - Income | 368,264.00 | Decrease | ||
| INCOME STATEMENT | ||||
| Sub Contract | 368,264.00 | Increase | ||
| Profit | 368,264.00 | Decrease | ||
Sol. 4
| Determine over- or under-billing for a company with the following information (use percent | |||
| complete accounting method). How would the over- or under-billing affect the company’s | |||
| income statement and balance sheet (show the changes using T tables)? (10 points) | |||
| Job ID: | 318 | ||
| Job Name: | Marker Street Warehouse | ||
| Current Contract Amount: | $256,852 | ||
| Total Estimated Cots at Completion: | $225,236 | ||
| Actual Cost to Date: | $202,138 | ||
| Total Billed: | $252,253 | ||
| ACCOUNT | CHANGE IN AMOUNT ($) | ||
| BALANCE SHEET | |||
| Contract Amount | 256,852.00 | Increase | |
| Cost Of Contract | 225,236.00 | Increase | |
| INCOME STATEMENT | |||
| Job Cost (90% Work Completion) | 202,138.00 | Increase | |
| Profit (Over Billed Amount) | 23,098.00 | Decrease |
