亨格瑞管理會(huì)計(jì)英文第15版 答案 10-12章.pdf

Copyright 2011 Pearson Education 1 CHAPTER 11 Capital Budgeting 11-A1 (15-25 min.) Answers are printed in the text at the end of the assignment material. 11-29 (10-15 min.) 1. The present value is $480,000 and the annual payments are an annuity, requiring use of Table 2: (a)$480,000 = annual payment 11.2578 annual payment = $480,000 11.2578 = $42,637 (b)$480,000 = annual payment 9.4269 annual payment = $480,000 9.4269 = $50,918 (c)$480,000 = annual payment 8.0552 annual payment = $480,000 8.0552 =$59,589 2. (a)$480,000 = annual payment 8.5595 annual payment = $480,000 8.5595 = $56,078 (b)$480,000 = annual payment 7.6061 annual payment = $480,000 7.6061 = $63,107 (c)$480,000 = annual payment 6.8109 annual payment = $480,000 6.8109 =$70,475 3. (a) Total payments= 30 $50,918 = $1,527,540 Total interest paid= $1,527,540- $480,000 = $1,047,540 (b) Total payments= 15 $63,107= $946,605 Total interest paid = $946,605 - $480,000 = $466,605 11-36 (10 min.) Buy. The net present value is positive. Initial outlay * $(21,000) Present value of cash operating savings, from 12-year, 12% column of Table 2, 6.1944 $5,000 30,972 Net present value $ 9,972 * The trade-in allowance really consists of a $5,000 adjustment of the selling price and a bona fide $10,000 cash allowance for the old equipment. The relevant amount is the incremental cash outlay, $21,000. The book value is irrelevant. 11-39 (10-15 min.) Copyright 2011 Pearson Education 2 1. NPV 10% = 10,000 3.7908 = $37,908 - $36,048 = $1,860 NPV 12% = 10,000 3.6048 = $36,048 - $36,048 = $0 NPV 14% = 10,000 3.4331 = $34,331 - $36,048 = $(1,717) 2. The IRR is the interest rate at which NPV = $0; therefore, from requirement 1 we know that IRR = 12%. 3. The NPV at the companys cost of capital, 10%, is positive, so the project should be accepted. 4. The IRR (12%) is greater than the companys cost of capital (10%), so the project should be accepted. Note that the IRR and NPV models give the same decision. 11-46 (10-15 min.) Annual addition to profit = 40% $25,000 = $10,000. 1. Payback period is $36,000 $10,000 = 3.6 years. It is not a good measure of profitability because it ignores returns beyond the payback period and it does not account for the time value of money. 2. NPV = $5,114. Accept the proposal because NPV is positive. Computation: NPV = ($10,000 4.1114) - $36,000 = $41,114 - $36,000 = $ 5,114 3. ARR = (Increase in average cash flow Increase in depreciation) Initial investment = ($10,000 - $6,000) $36,000 = 11.1% 11-51 (30-35 min.) 1. Annual Operating Cash Flows Xerox Cannon Difference Salaries $49,920(a) $41,600(b) $ 8,320 Overtime 1,728(c) - 1,728 Repairs and maintenance 1,800 1,050 750 Toner, supplies, etc. 3,600 3,300 300 Total annual cash outflows $57,048 $45,950 $11,098 (a) ($ 8 40 hrs.) 52 weeks 3 employees = $320 52 3 = $49,920 (b) ($10 40 hrs.) 52 weeks 2 employees = $400 52 2 = $41,600 (c) ($12 4 hrs.) 12 months 3 machines = $ 48 12 3 = $ 1,728 Initial Cash Flows Xerox Cannon Difference Purchase of Cannon machines $ - $50,000 $50,000 Copyright 2011 Pearson Education 3 Sale of Xerox machines - -3,000 -3,000 Training and remodeling - 4,000 4,000 Total $ - $51,000 $51,000 Copyright 2011 Pearson Education 461 EXHIBIT 11-50 All numbers are expressed in Mexican pesos. 2. 18% Total Sketch of Relevant Cash Flows PV Present (in thousands) Factor Value 0 1 2 3 4 5 Cash operating savings:* .8475 83,902 99,000 .7182 78,212 108,900 .6086 72,904 119,790 .5158 67,966 131,769 .4371 63,356 144,946 Total 366,340 Income tax savings from depreciation not changed by inflation, see 1 3.1272 105,074 33,600 33,600 33,600 33,600 33,600 Total 471,414 Required outlay at time zero 1.0000 (420,000) (420,000) Net present value 51,414 *Amounts are computed by multiplying (150,000 .6) = 90,000 by 1.10, 1.10 2, 1.10 3, etc. Copyright 2011 Pearson Education 462 PV Present of $1.00 Value of Discounted Cash Flows Annual Cash Flows at 12% 0 1 2 3 4 5 TOTAL PROJECT APPROACH: Cannon: Init. cash outflow 1.0000 $ (51,000) Oper. cash flows 3.6048 (165,641) (45,950) (45,950) (45,950) (45,950) (45,950) Total $(216,641) Xerox: Oper. cash flows 3.6048 $(205,647) (57,048) (57,048) (57,048) (57,048) (57,048) Difference in favor of retaining Xerox $ (10,994) INCREMENTAL APPROACH: Initial investment 1.0000 $(51,000) Annual operating cash savings 3.6048 40,006 11,098 11,098 11,098 11,098 11,098 Net present value of purchase $(10,994) 2. The Xerox machines should not be replaced by the Cannon equipment. Net savings = (Present value of expenditures to retain Xerox machines) less (Present value of expenditures to convert to Cannon machines) = $205,647 - $216,641 = $(10,994) 3. a. How flexible is the new machinery? Will it be useful only for the presently intended functions, or can it be easily adapted for other tasks that may arise over the next 5 years? b. What psychological effects will it have on various interested parties? Copyright 2011 Pearson Education 463 11-71 (60-90 min.) This is a complex problem because it requires comparing three alternatives. It reviews Chapter 6 as well as covering several of the topics of Chapter 11. The following answer uses the total project approach. The total net future cash outflows are shown for each alternative. 1. Alternative A: Continue to manufacture the parts with the current tools. Annual cash outlays Variable cost, $92 8,000 $(736,000) Fixed cost, 1/3 $45 8,000 .6 (72,000) Tax savings, .4 ($736,000 + $72,000) 323,200 After-tax annual cost $(484,800) Present value, 3.6048 $484,800 $(1,747,607) PV of remaining tax savings on MACRS: 11.52% $2,000,000 .4 .8929 82,290 5.76% $2,000,000 .4 .7972 36,735 Total present value of costs, Alternative A $(1,628,582) Alternative B: Purchase from outside supplier Annual cash outlays Purchase cost, $110 8,000 $(880,000) Tax savings, $880,000 .4 352,000 After-tax annual cost $(528,000) Copyright 2011 Pearson Education 464 Present value, $528,000 3.6048 $(1,903,334) Sale of old equipment: Sales price $ 400,000 Book value (11.52% + 5.76%) $2,000,000 345,600 Gain $ 54,400 Taxes 40% (21,760) Total after-tax effect ($400,000 - $21,760) 378,240 Total present value of costs, Alternative B $(1,525,094) Copyright 2011 Pearson Education 465 Alternative C: Purchase new tools Investment $(1,800,000) Annual cash outlays Variable cost, $73 8,000 $(584,000) Fixed cost (same as A) (72,000) Tax savings, .4 ($584,000 + $72,000) 262,400 After-tax annual cost $(393,600) Present value, $393,600 3.6048 (1,418,849) Tax savings on new equipment* 579,217 Effect of disposal of new equipment Sales price $ 500,000 Book value 0 Gain $500,000 Taxes 40% 200,000 Total after-tax effect $ 300,000 Present value, $300,000 .5674 170,220 Effect of disposal of old equipment (see Alternative B) 378,240 Total present value of costs, Alternative C $(2,091,172) * Using the MACRS schedule for tax depreciation, the depreciation rate for each year of a 3-year assets life is shown in Exhibit 11-6: Depreciation Tax PV Present Year Rate Savings Factor Value 1 33.33% .3333 $1,800,000 .40 = $239,976 .8929 $214,275 2 44.45% .4445 1,800,000 .40 = 320,040 .7972 255,136 3 14.81% .1481 1,800,000 .40 = 106,632 .7118 75,901 4 7.41% .0741 1,800,000 .40 = 53,352 .6355 33,905 Total present value of tax savings $579,217 Using Exhibit 11-7, we get .8044 $1,800,000 .4 = $579,168, which differs from $579,217 by a $49 rounding error. The alternative with the lowest present value of cost is Alternative B, purchasing from the outside supplier. Copyright 2011 Pearson Education 466 2. Among the major factors are (1) the range of expected volume (both large increases and decreases in volume make the purchase of the parts relatively less desirable), (2) the reliability of the outside supplier, (3) possible changes in material, labor, and overhead prices, (4) the possibility that the outside supplier can raise prices before the end of five years, (5) obsolescence of the products and equipment, and (6) alternate uses of available capacity (alternative uses make Alternative B relatively more desirable). Copyright 2011 Pearson Education 467 CHAPTER 12 Cost Allocation 12-30 (10-15 min.) 1. Rate = $2,500 + ($.05 100,000) 100,000 = $.075 per copy Cost allocated to City Planning in August = $.075 42,000 = $3,150. 2. Fixed cost pool allocated as a lump sum depending on predicted usage: To City Planning: (36,000 100,000) $2,500 = $900 per month Variable cost pool allocated on the basis of actual usage: $.05 number of copies Cost allocated to City Planning in August: $900 + ($.05 42,000) = $3,000. 3. The second method, the one that allocated fixed- and variable-cost pools separately, is preferable. It better recognizes the causes of the costs. The fixed cost depends on the size of the photocopy machine, which is based on predicted usage and is independent of actual usage. Variable costs, in contrast are caused by actual usage. Exhibit 12-34 Customer Type 1 Customer Type 2 Customer Type 3 Sales Gross price profit per margin Gross Gross Gross Product unit per unit Units Revenue profit Units Revenue profit Units Revenue profit A $11.031 $ 4.14 200 $ 2,206 $ 828 2,200 $ 24,266 $ 9,108 500 $ 5,515 $ 2,070 B 20.47 4.09 100 2,047 409 1,200 24,564 4,908 3,000 61,410 12,270 C 51.38 10.28 50 2,569 514 400 20,552 4,112 5,000 256,900 51,400 Copyright 2011 Pearson Education 468 D 90.00 39.38 400 36,000 15,752 800 72,000 31,504 400 36,000 15,752 Total 750 $42,822 17,503 4,600 $141,382 49,632 8,900 $359,825 81,492 Cost to serve 7,368 45,193 87,439 Operating income $10,135 $ 4,439 ($5,947) Customer gross margin percentage 40.9% 35.1% 22.6% Cost to serve percentage 17.2% 32.0% 24.3% Customer operating income percentage 23.7% 3.1% (1.7%) 1 $32,000 2,900 units; etc. The rounded numbers from the first two columns are used in subsequent calculations. Copyright 2011 Pearson Education 469 5. The chart below shows customer profitability for the three customer types and suggested strategies for profit improvement. Grow business with this customer type by focused sales efforts and quantity discounts. Work with customers to lower the cost to serve. Seek internal process improvements to lower those elements of the cost to serve controllable by the company. Work with customers to change their ordering patterns, focusing more on the more profitable products. Also, these customers may be able to lower the cost to serve. Seek internal process improvements to lower those elements of the cost to serve controllable by the company. Copyright 2011 Pearson Education 470 12-35 (15-20 min.) 1. Allocation of Gallons Weighting Joint Costs Solvent A 9,000 9/15 $300,000 $180,000 Solvent B 6,000 6/15 $300,000 120,000 15,000 $300,000 2. Relative Sales Allocation of Value at Split-off* Weighting Joint Costs Solvent A $270,000 27/54 $300,000 $150,000 Solvent B 270,000 27/54 $300,000 150,000 $540,000 $300,000 * $30 9,000 and $45 6,000 12-42 (25-30 min.) There a several ways to organize an analysis that provides product costs. We like to focus first on determining total activity-cost pools and activity cost per driver unit. Then, an analysis similar to the one shown in Exhibit 12-8 can be used. Schedule a: Activity center cost pools Resources Supporting the Allocated Setup/Maintenance Activity Center Allocation Calculation Cost Assembly supervisors $90,000 2% $ 1,800 Assembly machines $247,000 (400 1,900) 52,000 Facilities management $95,000 (400 1,900) 20,000 Power $54,000 (10 90) 6,000 Total assigned cost $79,800 Cost per driver unit (setup) $79,800 40 $ 1,995 Resources Supporting the Allocated Setup/Maintenance Activity Center Allocation Calculation Cost Assembly supervisors $90,000 98% $ 88,200 Assembly machines $247,000 (1,500 1,900) 195,000 Facilities management $95,000 (1,500 1,900) 75,000 Power $54,000 (80 90) 48,000 Total assigned cost $406,200 Cost per driver unit (machine hour) $406,200 1,500 $ 270.80 Copyright 2011 Pearson Education 471 Exhibit 12-42 Contribution to cover other value-chain costs by product Standard Deluxe Custom Cost per Driver unit Driver Driver Driver Activity/Resource (Schedule a) Units Cost Units Cost Units Cost Setup/Maintenance $1,995 20 $ 39,900 12 $ 23,940 8 $ 15,960 Assembly $270.80 1,000 270,800 400 108,320 100 27,080 Parts 1,003,800 115,080 15,980 Direct labor 298,000 72,000 68,000 Total $1,612,500 $319,340 $127,020 Units 100,000 10,000 1,000 Cost per display $16.125 $31.934 $127.02 Selling price 20.000 50.000 250.00 Unit gross profit $ 3.875 $18.066 $122.98 Total gross profit $387,500 $180,660 $122,980 The total contribution of these products is $387,500 + $180,660 + $122,980 = $691,140. Copyright 2011 Pearson Education 472 12-43 (25-30 min.) See solution to problem 12-42. 12-55 (100 200 min.) 1. Exhibits 12-55A and 12-55B show the calculation of customer gross margin percentage and customer cost-to-serve percentage for the 4 customer types. Exhibit 12- 55C shows a plot of customer gross margin percentage versus customer cost-to-serve percentage for the 4 customer types. 2. Suggested strategies for profit improvement for the 4 customer types follow. Customer type 1 - Mega stores. These stores have the lowest cost-to-serve. Profitability can be improved by focusing on a better product mix. A quarter of the sales (cases) to these stores are from bulk and singles products both of which have a negative gross margin. A shift in mix towards more regular and fragile product types would improve profitability. Customer type 2 Local small stores. These stores have a product mix that contains a substantial amount (32%) of the negative gross margin products. The same change in sales focus that applies to mega stores can be applied to local small stores. But unlike mega stores, small stores are very costly to serve. From Exhibit 12-55 B, the largest single cost to serve local small stores is truck deliveries. The average number of cases per order (the same as per truck delivery) is 6,000,000 80,000 = 75. Compare this to mega stores that average 7,680,000 32,000 = 240 cases per order (delivery). This is a significant factor causing the high cost-to- serve. For example, suppose that the average order size could be increased from 75,000 to 150,000 cases. If the total annual cases sold is unchanged (6,000,000), a total of 40 orders, a 50% reduction, would be made. An estimate of the cost savings and the impact on the cost-to-serve percentage can be made as follows: Cost per Driver Unit Reduction in Driver Cost Savings (Exhibit 12-55B) Units of 50% (000) Truck delivery $167.55 34,000 $5,696.70 Order processing 27.49 40,000 1,099.60 Regular scheduling 5.83 36,000 209.88 Expedited scheduling 19.44 4,000 77.76 Total cost savings (000) $7,083.94 Cost savings as a percent of revenue 24.9% New cost-to-serve as a percent of revenue 60.1% In addition to the above savings, other activities would also be impacted by the reduction in orders such as customer service. So while the total impact of Copyright 2011 Pearson Education 473 focusing on increasing order size can only be estimated, it is reasonable to expect dramatic cost savings from the current 85% of revenue. Other factors that should be investigated include the high level of corporate support and customer service. Customer type 3 Local large stores. Local large stores generate $68,400 $136,230 = 50% of DSIs total revenue and with a net margin of 58% - 47% = 11%. The key to local large store profitability is sales of a large percentage (80%) of regular product. The cost-to-serve percentage is 47%. This could be reduced as for customer type 2 by increasing the order size from the current level of 14,400,000 120,000 = 120 cases per order. But a dramatic improvement should not be expected. In general, local large stores are sustaining DSIs business and their loyalty should be cultivated. Customer type 4 Specialty stores. Specialty stores have a low gross margin of 22% coupled with a very large cost-to-serve percent of 106%! Although these stores do not account for a significant portion of DSIs revenue the company should rationalize their business. Several actions could be suggested. One is to charge a premium for all high-security products. The vast majority of these products are sold to specialty stores with only marginal sales to mega and local small stores. Another action is to adopt a customer loyalty program based on volume of sales. The list price of $7.25 per case would apply to customers with sales volumes less than a specified level. Most of DSIs customers would qualify for discounts (similar to those currently existing) so prices would not be significantly different. For specialty stores, prices would increase dramatically. This may result in losing specialty-store business so DSI needs to decide is this is a direction they wish to consider. Copyright 2011 Pearson Education 474 Exhibit 12-55A (Units and dollars are in thousands.) Customer Type ProductRegular Short Fragile Bulk High Security SinglesTotal Gross Profit Percentage Product mix percentage 60% 5% 5% 20% 5% 5% 100% Cases sold 4,608 384 384 1,536 384 384 7,680 Total Revenue $ 21,888 $ 1,824 $ 1,824 $7,296 $ 1,824 $ 1,824 $36,480