1 2020 Sales 350,000

Rate 6%
Est. Warranty Expense 21,000

2 Highest Estimate 900,000

Lowest Estimate 500,000
Average 700,000

3 to 7 Warranty
Beginning Balance 1,360,000
Sales 54,000,000.00 18,000,000
Estimated Redemption/ Claims 2% 60%
Estimated Redemption (Peso) 1,080,000
Number of required coupons 200
Estimated premium claims 5,400
Cost per Premium 140
Premium/ Warranty Expense 1,080,000
Total 2,440,000
Purchases
Redemption/ Claims - 1,640,000 1,200,000
Number of required coupons 200
Premium Claims 6,000
Cost per Premium 140
Estimated Liability 800,000

8 b=10%(9600000-b-.30%(9600000-b)
b=10%(9600000-b-2880000+.30b) 2,880,000
b=10%(6720000+.20b) 6,720,000 6,720,000
b=672000+.02b 2%
.98b=672000

9 i. 300,000
ii. 7,200,000
iii. with waiver
iv. 2,000,000
v. 2,000,000
Total 11,500,000

10 Down Payment 80,000.00

Installment Payment 60,000
PVOA 3.03735 182,241.00
Cost of Machine 262,241.00

Interest Expense Principal Payments CA

1/1/2020 182,241
12/31/2021 21,869 60,000.00 144,110
12/31/2022 17,293 60,000.00 101,403
Premium Inventory (P) Inventory (u)
448,000 399,500 1,175

756,000
1,204,000 399,500 1,175
2,210,000 6,500

- 6,000
- 840,000 340 - 2,040,000
364,000 569,500 1,675