fingame 5.0

###

Income from securities 2,655

Cost of Goods Sold:

Beginning Inventory: ( 9,809 at $74.79 ) $733,615

Materials ###

Direct Labor 3,500,000

Total Direct Costs ###

Warehousing Costs $60,408

Depreciation: Mach. and Equip. 478,125

Plant 1,300,000

Other Overhead Costs 200,000

Total Indirect Costs 2,038,533

7,038,533

###

879,492

Cost of Goods Sold

Gross Profit

Selling and administrative expenses ###

Financial Expenses:

Short Term Bank Interest $0

Penalty Loan Interest 0

Intermediate Term Loan Interest 92,749

Bond Interest 33,600

Bond Redemption Costs 0

Total Financial Charges 126,349

Sales revenue ( 97,383 units at $100.00 )

Production Costs ( 100,000 at $70.39 )

Goods Available for Sale ( $70.78 per unit )

Less: Ending Inventory ( 12,426 units )

Operating Income Before Extraordinary Items

Extraordinary Items

Income Before Taxes

Income After Taxes

Preferred Stock Dividind

Earnings to Common Stockholders

Net Income Transferred to Retained Earnings

Income Tax (rate is 10%)

Common Stock Dividends ( $0.10 per share )

$9,740,955 0.013275

60000 40000 20000$39.00 $29.00 $25.00

$1,417,500.00

70.38533

begning inventory and 100000 produced this time

Per unit cost?

$6,892,608.00

$2,848,347

1*10^6+0.05*E2+forecast+Adv $1,486,915.00 $14.87

$9,719

1,235,083

$1,235,083

0

$1,235,083

123,508 10%

$1,111,575

0

$1,111,575

100,000 0.1 Dividend to common

###

Units Produced 100000

>120000$33.00 $3,500,000.00

Inflows $6,526,440

OutflowMaterial Purchased $1,350,000.0 Material Purchased Last Year 0Direct Labour this year 3150000Direct Labour from previous year 0Warehouse fee $60,408 Overhead (90)Selling and AdminShort Term loan repay and Interest

Quarter Q2 Q3 Q4 Q5 Q6

Cash Inflows

Cash Sales

Account Receivables Collected

Income from Securities Extraordinary GainSale of Marketable Securities

Issuance of:

Short-term Bank Loans Penalty Loans

2 Yr Loans

3 Yr Loans

10 Yr Bonds

Preferred Stock

Common Stock

TOTAL CASH INFLOWS

Cash Outflows $ 100,000.00 Production Cash Outflows:

Materials $1,500,000.00 Direct Labor Warehousing Costs Other Overhead Costs $ 180,000.00 Account Payable PaymentsFinancial Expenses:

Short-term Bank Loan Interest Penalty Loan Interest

2 Yr Loan Interest

3 Yr Loan Interest

10 Yr Bond Interest

Bond Redemption Costs

Selling and Administrative Expenses

Capital Expenditures:

Machinery 3743300 Plant $17,110,000.00 Capital Budgeting Projects

Extraordinary Loss

Income Tax

Dividends:

Preferred Stock

Common Stock

Purchase of Marketable Securities

Principal payments and Retirement of:

Short-term Bank Loans Penalty Loans

2 Yr Loans

3 Yr Loans

10 Yr Bonds

Preferred Stock

Common Stock

TOTAL CASH OUTFLOWS

Net Cash Flow for the Quarter

Beginning Cash Balance

Ending Cash Balance

Q7 Q8 Q9 Q10 Q11 Q12

ASSETS

Current Assets

Cash $491,120

Marketable Securities 200,000

Accounts Receivable 6,524,661

879,492

Total Current Assets $8,095,272

Machinery and Equipment ###

Plant 7,165,250

Total Fixed Assets 9,173,375

Total Assets ###

LIABILITIES AND OWNER EQUITY

Current Liabilities

Accounts Payable $520,000

Short Term Loans Payable 0

Short Term Penalty Loan 0

Intermediate Term Debt Maturing 1,850,000 All maturing items within 1 year

Bonds Maturing 1,200,000

Total Current Liabilities $3,570,000

Long Term Liabilities

Intermediate Loans: 2 years $937,500 937500

3 years 0

Bonds 1,200,000

Inventory ( 12,426 units at $70.78 /UNIT )

Fixed Assets (net of depreciation

Total Long Term Liabilities 2,137,500

Total Liabilities $5,707,500

Owners' Equity

$0

8,000,000

Retained Earnings 3,561,147

Total Equity 11,561,148

Total Liabilities and Equity ###

Preferred Stock ( 0 shares )

Common Stock ( 1,000,000 shares )

Cash I will get $3,216,294.00

$6,524,661.00

1,850,000

HISTORICAL INFORMATION

Common share price $43.47 Accumulated Wealth $43.57

Quarterly EPS $1.11 Dividend Yield 0.93%

Price earnings ratio 9.78 Marketable Security Yield 1.33%

Actual unit price $100.00 Actual unit demand 97,383

Preferred stock price $32.15 Preferred dividend yield 3.11%

Return on investment 25.75% Return on equity 38.46%

Call premium: preferred 8.00% Bond call premium 8.00%

Common tender or sell/sh $0.00 Unpaid preferred dividend/share $0.00

Outstanding debt yields:

Short-term 2-year loan 3-year loan Bonds

2.98% 3.11% 2.50% 1.40%

INFORMATION FOR FUTURE QUARTERS:

2 3 4

Units forecast 101,378 90,174 124,132

Price per unit forecast $100.37 $96.43 $110.60

Units of plant capacity 100,000 100,000 100,000

Units of machine capacity 100,000 100,000 75,000

Other overhead 200,000 200,000 200,000

Depreciation: Machinery 478,125 478,125 384,375

Projects 0 0 0

Plant 1,300,000 1,300,000 1,300,000

Principal repayment on debt:

Short-term 0 0 0

2-year 312,500 312,500 312,500

3-year 300,000 300,000 0

Bonds 300,000 300,000 300,000

Warehouse fees:

Units First 2000 Next 5000

Cost/Unit $1.00 $3.00

Production costs per unit next quarter:

Materials $15.00 Machinery $41.00

Units First 60,000 Next 40,000 Next 20,000

Labor cost $39.00 $29.00 $25.00

Rates on funding in quarter 2

Short-term 2-year loan 3-year loan Bond

2.00% 1.95% 1.91% 1.84%

Interest due next quarter:

Short-term $0

Intermediate $83,030

Bonds $33,600

Capital budgeting projects for next quarter:

Life Cost Unit Capacity

A 2-yr $437,664 100,000

B 3-yr $634,728 120,000

32.15434083601

Penalty loan

8.00%

5

111,898

$104.80

80,000

60,000

200,000

311,250

0

989,000

312,500 1,250,000 2500000

0 600,000 900000

300,000 1,200,000 12,000,000

Over 7000

$8.00

Plant $281.00 1417500

Over 120,000

$33.00

Preferred Next Year Prefered stock price

2.40% 41.6319733555371

83031.25

Overhead Saving Unit Labor sav., Qtr.2 Change/Qtr. Labor Sav.

$14,147 $0.54 $0.02

($7,395) $1.05 $0.00

No of shares offered 15,000.00Price 68.80Currently Outstanding 1,000,000.00

Tender Price 61.73

Raised 925,886.52

Rwacc

Loanshort term 1.98% 0

2 1.92% $2,787,500 3 1.85%

Bonds 1.75%Equity -preferred 2.62%

cost of equity 2.96200%

1 2 3 4 5Demand

ProductionStock out Cost

Carrying Cost/unit

Marginal Utility of extra unitProbability of sale 60% 70% 80% 90% 100%

Sale Price 100 100 100 100 100

Material 15 15 15 15 15 Labour cost (Till 120000) 25 25 25 25 25Selling and Admin cost 15 15 15 15 15

Warehouse 3 3 3 3 3Overhead costs 2 2 2 2 2

Profit Contribution 40 40 40 40 40Expected Profit 24 28 32 36 40

Machine $41.00 $41.00 $41.00 $41.00 $41.00 Plant $281.00 $281.00 $281.00 $281.00 $281.00

Average invt. $161.00 $161.00 $161.00 $161.00 $161.00 Depreciation $19.18 $19.18 $19.18 $19.18 $19.18

Cost of capital 3% 3% 3% 3% 3%Cost of raising this capital $4.83 $4.83 $4.83 $4.83 $4.83

Total cost 84.005 84.005 84.005 84.005 84.005Final Profit ($0.01) $3.99 $7.99 $11.99 $15.99

PlantMachine

1 2 3 4 5Demand 101,378 90,174 124,132 111,898

Units of plant capacity 100,000 100,000 100,000 100,000 80,000

Units of machine capacity 100,000 100,000 100,000 75,000 60,000

Machine ordered 29100 51000Plant Ordered 60500

Expiring machine 0 0 25,000 15,000Expiring Plant 0 0 0 20,000

Final Machine Cap 100,000 100,000 100,000 104,100 140,100Final Plant Cap 100,000 100,000 100,000 160,500 140,500

My Capcity 100,000 100,000 104,100 140,100

Deficit 1,378 -9,826 20,032 -28,202Inventory on hand 12426 11,048 20,874 842 -56

1 2 3 4 5Demand 101378 90174 124132 111898

Units of plant capacity 100000 100000 100000 100000 80000Units of machine capacity 100000 100000 100000 75000 60000


Expiring machine 0 0 25000 15000Expiring Plant 0 0 0 20000

Final Machine Cap 100000 100000 100000 127100 126300Final Plant Cap 100000 100000 100000 140000 120000

My Capcity 100000 100000 127100 120000Production 90000 90000 127100 119000

Danger ok ok ok okDeficit 11378 174 -2968 -7102

Inventory on hand 12426 1,048 874 3,842 10,944

Inventory Carrying cost 0 1048 874 7526 54552Stock out cost 0 0 0 0 0

Unused Dep cost 0 140500 140500 181245 14050Total 0 141548 141374 188771 68602

Comments order a plant

1 2 3 4 5

Machine ordered 52100 14200 15000Plant Ordered 30000

Money Required $8,680,000.00 $2,136,100.00 $582,200.00 $615,000.00

Debt 1.656 $14,374,080.00 Equity

6

how many plant to orderPlant

Fixed cost of odering 250000No of Units 1Price/Unit $281.00 Total Cost $250,281.00 Co

Carrying Cost Cost of holdingDemand Capacity Unused Depreciation of unused

1 101,378 100000 1,3782 90,174 100000 -9,8263 124,132 75000 49,1324 111,898 60000 51,89856789

1011121314

6 7 8 9 10100000 100000 100000 100000 100000

50000 50000 25000 25000 25000

60,000 5000 5000 0 0

15000 1523240500

0 55,000 0 5,000 030,000 0 25,000 0 0

155,100 115,332 115,332 110,332 110,332 110,332151,000 151,000 126,000 126,000 126,000151,000 115,332 115,332 110,332 110,332

-51,000 -15,332 -15,332 -10,332 -10,332-56 276 376 10,708

6 7 8 9 10100000 100000 100000 100000 100000 10000050000 50000 25000 25000 2500060000 5000 5000 0 015000 15232 16000

500000 55000 0 5000 0

30000 0 25000 0 0141300 101532 117532 112532 112532 11253290000 90000 115000 115000 115000 11500090000 90000 115000 112532 112532 11253290000 90000 102000 102000 102000

ok ok ok ok ok ok10000 10000 -2000 -2000 -2000 100000

944 -9,056 -7,056 -5,056 96,944 -3,056

944 -105448 -89448 -73448 7425520 0 0 0 00 0 182650 182650 182650 1615750

944 -105448 93202 109202 925202 1615750

6 7 8 9

15232

$12,013,300.00

Warehouse cost2000 2k-7k >7k

1 3 8

how many plant to order

Cost of capital of extra

1 2 3 4 5 6 7 8 9 10 110

20,000

40,000

60,000

80,000

100,000

120,000

140,000Chart Title

100000 100000 75000 60000

14

1 2 3 4 5Demand


Carrying Cost/unit


Sale Price 100 100 100 100 100




Machine $41.00 $41.00 $41.00 $41.00 $41.00 Plant $281.00 $281.00 $281.00 $281.00 $281.00




PlantMachine

1 2 3 4 5Demand 101,378 90,174 124,132 111,898




Expiring machine 0 0 25,000 15,000Expiring Plant 0 0 0 20,000


My Capcity 100,000 100,000 104,100 140,100

Deficit 1,378 -9,826 20,032 -28,202Inventory on hand 12426 11,048 20,874 842 -56

1 2 3 4 5Demand 101378 93831 119444 116171

Units of plant capacity 100000 100000 100000 100000 80000Units of machine capacity 100000 100000 100000 75000 60000





Danger ok ok ok okDeficit 11378 3031 -7656 6171

Inventory on hand 12426 1,048 1,674 4,642 2,744

Inventory Carrying cost 0 1048 1674 16226 10532Stock out cost 0 0 0 0 0

Unused Machine Dep cost 65000 59800 0 105950Unused Plant Dep cost 0 179500 165140 52055 0

Total 0 245548 226614 68281 116482

Cost difference

order a plant1 2 3 4 5


Money Required $8,680,000.00 $2,709,200.00 $738,400.00 $780,000.00

Debt 1.656 $14,374,080.00 Equity

ICR

6




1 101,378 100000 1,3782 90,174 100000 -9,8263 124,132 75000 49,1324 111,898 60000 51,89856789

1011121314

6 7 8 9 10100000 100000 100000 100000 100000

50000 50000 25000 25000 25000

60,000 5000 5000 0 0

15000 1523240500

0 55,000 0 5,000 030,000 0 25,000 0 0

155,100 115,332 115,332 110,332 110,332 110,332151,000 151,000 126,000 126,000 126,000151,000 115,332 115,332 110,332 110,332

-51,000 -15,332 -15,332 -10,332 -10,332-56 276 376 10,708

6 7 8 9 10100578 100000 100000 100000 100000 10000050000 50000 25000 25000 2500060000 5000 5000 0 0

0 1600030000 50000

0 55000 0 5000 030000 0 25000 0 0

126300 71300 87300 82300 82300 82300110000 110000 135000 135000 135000 135000110000 71300 87300 82300 82300 82300110000 71300 102000 102000 102000

ok ok Danger Danger Danger ok-9422 28700 -2000 -2000 -2000 10000012,744 -15,956 -13,956 -11,956 90,044 -9,956

69752 1144 -144648 -128648 6873520 0 0 0 0

105950 00 543735 463650 463650 463650 1896750

175702 544879 319002 335002 1151002 18967501377506

6 7 8 9

15232

$12,907,600.00


1 3 8



1 2 3 4 5 6 7 8 9 10 110

20,000

40,000

60,000

80,000

100,000

120,000

140,000Chart Title

100000 100000 75000 60000

93,831 119,444 116,171 100,578$98.21 $106.54 $105.10 $98.20

$9,215,142.51 ### ### ###

14

1 2 3 4 5Demand


Carrying Cost/unit


Sale Price 100 100 100 100 100




Machine $41.00 $41.00 $41.00 $41.00 $41.00 Plant $281.00 $281.00 $281.00 $281.00 $281.00




PlantMachine

1 2 3 4 5Demand 102,285 93,506 116,722 111,171



D44

smruthi reddy: Manual Over ride - Capacity produced

Machine ordered 35000Plant Ordered 35000

Expiring machine 5,000 5,000 15,000 15,000Expiring Plant 0 0 0 20,000


My Capcity 95,000 90,000 110,000 95,000

Deficit 7,285 3,506 6,722 16,171Inventory on hand 12426 5,141 1,635 -5,087 -56,258

1 2 3 4 5Demand 102,285 93,506 120,000 113,654

ProductionUnits of plant capacity 100000 100000 100000 100000 80000

Units of machine capacity 100000 100000 100000 75000 60000





Deficit 7285 3506 10000 -1346Inventory on hand 12426 5,141 1,635 -5,087 -1,258

Inventory Carrying cost 67686 2423 1,635 -5087unused dep cost

1 2 3 4 5


Money $17,110,000.00 $2,136,100.00 $992,200.00 $615,000.00

E66

smruthi reddy: Order 20000 Machinery

E67

smruthi reddy: 30000 Ordered

6




1 101,378 100000 1,3782 90,174 100000 -9,8263 124,132 75000 49,1324 111,898 60000 51,89856789

1011121314

6 7 8 9 10102179 108788 100000 100000 100000

50000 50000 25000 25000 25000

60,000 5000 5000 0 0

405000 55,000 0 5,000 0

30,000 0 25,000 0 095,000 40,000 40,000 35,000 35,000 35,000

125,500 125,500 100,500 100,500 100,50095,000 40,000 40,000 35,000 35,000

7,179 68,788 60,000 65,000 65,000-63,437 -132,225 -192,225 -257,225

6 7 8 9 1099000 100000 134000 96000 100000

50000 50000 25000 25000 25000

60000 5000 5000 0 0

0 5000030000 25000

0 55000 0 5000 030000 0 25000 0 0

115000 110000 110000 105000 105000 105000115000 115000 115000 115000 115000 115000115000 110000 110000 105000 105000 105000115000 110000 110000 102000 102000-16000 -10000 24000 -6000 -102000 10000011,563 12,775 22,775 24,775 126,775 26,775

P 43.57EPS 1.11P/E 39.2522522522523

6 7 8 9

15232

$3,743,300.00 $72,994.35

G66

smruthi reddy: Order 50000 m/cs

H66

Shine Nagpal: 30000 m/c buy

G67

Shine Nagpal: Order Plant - 35000/40000


1 3 8



1 2 3 4 5 6 7 8 9 10 110

20,000

40,000

60,000

80,000

100,000

120,000

140,000Chart Title

100000 100000 75000 60000

16576359 715389 0.043157

35000 50000306 44

10960000 2200000 13160000 172500014885000 -3000000 11885000

Funds Needed Debt Debt Equity

1000000 ###10480000 ### 5250000 ###11480000

0.282948 $ 3,000,000.00 14843741

9593740.8

68.19 68.19 1.01 0.650353636364 1.056

67.5148514851485 104.8506476896

3500000

7,500,00026,944,82

Debt ###Equity 12,466,544Current Assets 8,937,519Total Assets ###Current L 4,111,015EBIT 1439624Interest 433,628Net Income $905,397 Total Outstanding

D/E 1.046802EPS 0.91ROA 0.034853

ROE 29.05ROI 13.94CR 2.174042ICR 3.319952

Company Operating Decisions

Units to be produced 90,000

Div. per common share $0.00

Demand/price forecast $75,000

Investment Decisions

Short-term investment $0

Machine units bought 0

Project A yes

Financing Decisions

Short-term loans $0

Two-year loans $0

Three-year loans $0

Ten-year bonds ###

Special Options

Strike settlement (per hr.) $0.00

Quarterly Performance Report

Quarter Number 2

Income from securities

Cost of Goods Sold:

Beginning Inventory: ( 12,426 at $70.78 )

Materials $1,350,000


Total Direct Costs $4,416,900


Warehousing Costs $141


Plant 1,300,000



Cost of Goods Sold

Gross Profit

Selling and administrative expenses

Financial Expenses:






Total Financial Charges

Operating Income Before Extraordinary Ite

Extraordinary Items

Income Before Taxes

Income After Taxes




Less: Ending Inventory ( 141 units )



Net Income Transferred to Retained Earnin

Position Statement

Quarter Number 2

ASSETS

Current Assets

Cash $1,761,196



10,153


Machinery and Equipment $2,494,790

Plant 14,545,250


Total Assets $25,977,559


Current Liabilities




Intermediate Term Debt Maturing 1,550,000



Inventory ( 141 units at $72.01 /UNIT )




Intermediate Loans: 2 years $625,000

3 years 0

Bonds 8,775,000



Owners' Equity

$0

8,000,000



Total Liabilities and Equity $25,977,559

Summary Data

Quarter Number 2


Common share price $68.20 Accumulated Wealth

Quarterly EPS $0.91 Dividend Yield

Price earnings ratio 18.83 Marketable Security Yield

Actual unit price $101.65 Actual unit demand

Preferred stock price $41.63 Preferred dividend yield

Return on investment 13.94% Return on equity

Call premium: preferred 8.00% Bond call premium

Common tender or sell/sh $0.00 Unpaid preferred dividend/sh



Common tender or sell/sh $0.00 Unpaid preferred dividend/sh


Short-term 2-year loan 3-year loan

2.00% 3.11% 2.50%


3 4

Units forecast 91,414 108,024

Price per unit forecast $99.19 $108.23

Second forecast: units 95,061 114,833

Second forecast: price $97.33 $106.35

Third forecast: units 93,831 119,444

Third forecast: price $98.21 $106.54

Units of plant capacity 100,000 130,000

Units of machine capacity 100,000 75,000

Other overhead 193,248 193,248

Depreciation: Machinery 478,125 384,375

Projects 107,602 107,602

Plant 1,300,000 1,734,000


Short-term 0 0

2-year 312,500 312,500

3-year 300,000 0

Bonds 525,000 525,000

Warehouse fees:

Units First 2000

Units First 2000

Cost/Unit $1.00


Materials $15.00 Machinery

Units First 60,000 Next 40,000

Labor cost $37.39 $27.39



1.94% 1.91% 1.88%


Short-term $0


Bonds $286,755


Life Cost

A 2-yr $499,248

B 3-yr $482,424


Per unit price $101.65

Advertising cost $0

Sales discount 0.00%


Risk of S-T investme 0

Units of plant bought 30,000

Project B yes

Financing Decisions

Preferred shares 0

Common shares 0

Common tender pric $0

Special Options

Dollar penalty $0


Quarter Number 2

###

2,571 $10,399,841

$879,492

6,496,016

$7,375,507

10,153

7,365,354

$3,034,487

$1,594,863

433,628 2,028,490

$1,005,997

0

$1,005,996

100,599

$905,397

0

$905,397

0

$905,397

Position Statement

Quarter Number 2

Summary Data

Quarter Number 2

$68.31

0.00%

1.29%

102,285

2.40%

29.05%

8.00%

$0.00

$0.00


Bonds Penalty loan

2.64% 8.00%


5 6

100,599 116,094

$104.91 $100.22

118,889 93,242

$102.69 $98.73

116,171 100,578

$105.10 $98.20

110,000 80,000

60,000 60,000

193,248 193,248

311,250 311,250

107,602 107,602

1,423,000 1,101,500


0

312,500 312,500

0 0

525,000 525,000

Next 5000 Over 7000

Next 5000 Over 7000

$3.00 $8.00


$52.00 Plant $359.00

Next 20,000 Over 120,000

$23.95 $33.00


Bond Preferred

1.88% 2.33%


Unit Capacity Overhead SavingUnit Labor sav., Qtr.3Change/Qtr. Labor Sav.

100,000 $13,320 $0.62 $0.01

120,000 ($8,254) $0.80 ($0.01)


Units to be produced ###

Div. per common share $0.00

Demand/price forecast ###


Short-term investment $0

Machine units bought ###

Project A yes

Financing Decisions

Short-term loans $0

Two-year loans $0

Three-year loans $0

Ten-year bonds $0

Special Options

Strike settlement (per hr.) $0.00


Quarter Number 3

Income from securities

Cost of Goods Sold:

Beginning Inventory: ( 141 at $72.01 )

Materials $1,362,000




Total Direct Costs $4,320,075

Warehousing Costs $0


Plant 1,300,000



Cost of Goods Sold

Gross Profit

Selling and administrative expenses

Financial Expenses:






Total Financial Charges

Operating Income Before Extraordinary Ite

Extraordinary Items

Income Before Taxes



Less: Ending Inventory ( 0 units )

Income After Taxes



Net Income Transferred to Retained Earnin

Position Statement

Quarter Number 3

ASSETS

Current Assets

Cash $1,326,180



0


Machinery and Equipment $5,497,327

Plant 13,245,250


Total Assets $26,281,374


Current Liabilities




Inventory ( 0 units at $71.55 /UNIT )





Intermediate Term Debt Maturing 1,250,000




Intermediate Loans: 2 years $312,500

3 years 0

Bonds 8,250,000



Owners' Equity

$0

8,917,439



Total Liabilities and Equity $26,281,374

Summary Data

Quarter Number 3


Common share price ### Accumulated Wealth





Price earnings ratio 27.31 Marketable Security Yield

Actual unit price ### Actual unit demand

Preferred stock price ### Preferred dividend yield

Return on investment 8.13% Return on equity

Call premium: preferred 8.00% Bond call premium

Common tender or sell/sh ### Unpaid preferred dividend/sh



1.94% 3.11% 2.50%


4 5

Units forecast 116,722 111,171

Price per unit forecast $106.43 $106.47

Second forecast: units 120,345 111,509

Second forecast: price $106.28 $105.29

Third forecast: units 118,895 112,049

Third forecast: price $106.76 $103.97

Units of plant capacity 130,000 110,000

Units of machine capacity 127,100 112,100

Other overhead 188,181 188,181

Depreciation: Machinery 723,025 649,900

Projects 210,210 210,210

Plant 1,734,000 1,423,000


Short-term 0 0

2-year 312,500 312,500

3-year 0 0

Bonds 525,000 525,000

Warehouse fees:

Units First 2000

Cost/Unit $1.00


Materials $15.00 Machinery

Units First 60,000 Next 40,000

Labor cost $35.95 $25.95



2.38% 2.41% 2.47%


Short-term $0


Bonds $272,911


Life Cost

A 2-yr $669,696

A 2-yr $669,696

B 3-yr $536,544


Per unit price $98.68

Advertising cost $0

Sales discount 0.00%


Risk of S-T investme 0

Units of plant bought 0

Project B yes

Financing Decisions

Preferred shares 0

Common shares 15,000

Common tender pric $62

Special Options

Dollar penalty $0


Quarter Number 3

$8,974,058

2,361 $8,976,419

$10,153

6,496,593

$6,506,745

0

6,506,745

$2,469,673

$1,523,702

352,566 1,876,267

$593,406

0

$593,406

59,340

$534,066

0

$534,066

0

$534,066

Position Statement

Quarter Number 3

Summary Data

Quarter Number 3

$57.58

0.00%

0.00%

1.18%

93,506

2.33%

15.35%

8.00%

$0.00


Bonds Penalty loan

2.64% 8.00%


6 7

102,179 108,788

$97.42 $103.19

98,357 101,665

$99.82 $101.99

97,915 102,425

$98.83 $102.70

80,000 80,000

112,100 57,100

188,181 188,181

649,900 361,150

210,210 210,210

1,101,500 1,101,500


0

312,500 312,500

0 0

525,000 525,000

Next 5000 Over 7000

$3.00 $8.00


$50.00 Plant $341.00

Next 20,000 Over 120,000

$23.16 $33.00


Bond Preferred

2.78% 3.57%


Unit Capacity Overhead SavingUnit Labor sav., Qtr.4Change/Qtr. Labor Sav.

100,000 $14,582 $0.83 $0.03

100,000 $14,582 $0.83 $0.03

120,000 ($7,820) $0.89 $0.00

Cash $1,326,180 Net Working Capital

2 3 4 5 6 7 8 9Forecasted Demand 118895 112049 97915 102425

Machine Capacity 130000 110000 80000 80000Plant Capacity 127100 112100 112100 57100

Machine OrderedPlant Ordered

New Machine CapNew Plant Cap 127100 112100 112100 57100

My capacity 127100 112100 112100 57100ProductionInventory 0

Status ok ok ok okTotal Units 0 0 0 0 0 0

Stock Out 118895 112049 97915 102425

10 11 12 13 14 15 16

0 0 0 0 0 0 0

Capital Budgeting Project A

Capacity: 100,000 Units

0 1 2 3 4Initial Cost ($437,664)

Per Unit Labor Savings

Per Unit Savings $0.54 $0.56 $0.58 $0.60Units 100,000 100,000 100,000 100,000Annual Labor Savings $ 54,000 $ 56,000 $ 58,000 $ 60,000

Overhead Savings (add expenses) $ 14,147 $ 14,147 $ 14,147 $ 14,147 Reduction in Expenses $ 68,147 $ 70,147 $ 72,147 $ 74,147

Depreciation $ 54,708 $ 54,708 $ 54,708 $ 54,708

$ 13,439 $ 15,439 $ 17,439 $ 19,439

$ 1,344 $ 1,544 $ 1,744 $ 1,944

Increase (decrease) in Net Income $ 12,095 $ 13,895 $ 15,695 $ 17,495

Add: Depreciation $ 54,708 $ 54,708 $ 54,708 $ 54,708

Increased Operating Cash Flow $ 66,803 $ 68,603 $ 70,403 $ 72,203

CASH FLOW $ (437,664) $ 66,803 $ 68,603 $ 70,403 $ 72,203

Internal Rate of Return (IRR) 6.72% Reject Cost of Capital > IRR

WACC- Cost of Capital 2.38%

Internal Rate of ReturnPV of Cash Flows $ (437,664) $ 65,247 $ 65,444 $ 65,597 $ 65,707

Net Present Value $ 87,474 Reject NPV < 0

Bold: No Input Necessary

Increase (decrease) in Operating IncomeIncrease (decrease) in Income Taxes @ 10%

Current Period's Decisions

C4


5 6 7 8

$0.62 $0.64 $0.66 $0.68100,000 100,000 100,000 100,000

$ 62,000 $ 64,000 $ 66,000 $ 68,000

$ 14,147 $ 14,147 $ 14,147 $ 14,147 $ 76,147 $ 78,147 $ 80,147 $ 82,147

$ 54,708 $ 54,708 $ 54,708 $ 54,708

$ 21,439 $ 23,439 $ 25,439 $ 27,439

$ 2,144 $ 2,344 $ 2,544 $ 2,744

$ 19,295 $ 21,095 $ 22,895 $ 24,695

$ 54,708 $ 54,708 $ 54,708 $ 54,708

$ 74,003 $ 75,803 $ 77,603 $ 79,403

$ 74,003 $ 75,803 $ 77,603 $ 79,403

$ 65,777 $ 65,807 $ 65,800 $ 65,758

Capital Budgeting Project B

Capacity: 120,000 Units

0 1 2 3 4Initial Cost $ (634,728)

Per Unit Labor Savings

Per Unit Savings $1.05 $1.05 $1.05 $1.05Units 100,000 100,000 100,000 100,000Annual Labor Savings $ 105,000 $ 105,000 $ 105,000 $ 105,000

Overhead Savings (add. Expenses) $ (7,395) $ (7,395) $ (7,395) $ (7,395)Reduction in Expenses $ 97,605 $ 97,605 $ 97,605 $ 97,605

Depreciation $ 52,894 $ 79,341 $ 79,341 $ 79,341

$ 44,711 $ 18,264 $ 18,264 $ 18,264

$ 4,471 $ 1,826 $ 1,826 $ 1,826

Increase (decrease) in Net Income $ 40,240 $ 16,438 $ 16,438 $ 16,438

Add: Depreciation $ 52,894 $ 79,341 $ 79,341 $ 79,341

Increased Operating Cash Flow $ 93,134 $ 95,779 $ 95,779 $ 95,779

CASH FLOW $ (634,728) $ 93,134 $ 95,779 $ 95,779 $ 95,779

Internal Rate of Return (IRR) 10.49% Accept IRR > Cost of Capital

WACC- Cost of Capital 2.38%

Internal Rate of ReturnPV of Cash Flows $ (634,728) $ 90,965 $ 91,369 $ 89,240 $ 87,162

Net Present Value $ 352,047 Accept NPV > 0

Bold: No Input Necessary

Increase (decrease) in Operating Income

Increase (decrease) in Income Taxes @ 40%


C4


5 6 7 8 9 10 11 12

$1.05 $1.05 $1.05 $1.05 $1.05 $1.05 $1.05 $1.05100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

$ 105,000 $ 105,000 $ 105,000 $ 105,000 $ 105,000 $ 105,000 ### $ 105,000

$ (7,395) $ (7,395) $ (7,395) $ (7,395) $ (7,395) $ (7,395) $ (7,395) $ (7,395) $ 97,605 $ 97,605 $ 97,605 $ 97,605 $ 97,605 $ 97,605 $ 97,605 $ 97,605

$ 79,341 $ 79,341 $ 79,341 $ 79,341 $ 79,341 $ 79,341 $ 79,341 $ 79,341

$ 18,264 $ 18,264 $ 18,264 $ 18,264 $ 18,264 $ 18,264 $ 18,264 $ 18,264

$ 1,826 $ 1,826 $ 1,826 $ 1,826 $ 1,826 $ 1,826 $ 1,826 $ 1,826

$ 16,438 $ 16,438 $ 16,438 $ 16,438 $ 16,438 $ 16,438 $ 16,438 $ 16,438

$ 79,341 $ 79,341 $ 79,341 $ 79,341 $ 79,341 $ 79,341 $ 79,341 $ 79,341

$ 95,779 $ 95,779 $ 95,779 $ 95,779 $ 95,779 $ 95,779 $ 95,779 $ 95,779

$ 95,779 $ 95,779 $ 95,779 $ 95,779 $ 95,779 $ 95,779 $ 95,779 $ 95,779

$ 85,131 $ 83,148 $ 81,212 $ 79,320 $ 77,472 $ 75,668 $ 73,905 $ 72,184

Cost of Capital or Weighted Average Cost of Capital (WACC)

Before-Tax Cost of Bonds 2.64%Tax Rate 10.00%

After-Tax Cost of Debt 2.38%

EquityCost of (Common Stock) Equity 3.78000%

Weighted Average Cost of Capital (WACC)

Total Debt (TL - Acc payable) $11,912,499 Total Equity 13,918,050.00 Total LT financing* 25,830,549.00 * Intermediate and ST debt excluded for simplification

WACC* 3.13%

* Keep in mind this is quarterlyApproximate annual WACC-- how it is normally viewed) 12.53%

12.93%

46.12% D/E 0.85590353.88%

100.00%

Percentage of Long Term Debt Financing and Equity

fingame 5.0

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