sOLUTION TO PRI

OCioBE 2018
WEEK
Cust Behavior

Aier

ahiit A 000
AnswerA

91060 64,000
Awe
estuet pobt bitiie tas 368 Mandard Cost
Ae
M
Aawe
y t s for punhase
9 0o,000 4 ) 2 , 200
0,640
2,200 22,5e0

utul coimmosonPNE t82,9

Are saies tz00)/63 ati adaet

navoratle cost va 6.700
Netel 5 18100 3 4,J00 nnier feitie budget ts ked,
Anliw moissn cost varianc AroEe
Addy teloretx pueit J0,000/ 6s0000
t to sol
(L20,000 50,000)/014 3) J0.331
D00
ANSWIR: CHOT
P argungin of sarety ratio otal t20000
algs fuxod gosts rCRProft margin befire
ax)
P1,200,000/0 00 3, 750,000 Athaf Actual unit alel x Varabie ost per
Answes 145,000-(6,000 10)15.0007fav
Weighted Ave CM (050) 4300)10
Weghied-ve
(4500)272
0120) AsWor
e d ost vararce ALTbat- B u g t
"000 Un
rgak ieve

esos 2,000-22-1,000 M ot ui 0 30D20

12 Answer A
sles voiue varar Uot
(5,000-000) vPa0 P20,000
Current tnoome tut1)-ap0.00 700,0
C f 8 2M Atual S 235 000/5 000 -A

Dtrbut0n nharjin
P(5.000)
lourease Jo0 20 10.000
Shuit tem Decisto
13 Ante
The CN
o Aant 44 afo he Aner
wufts fo l t i t h fover M r i n
Domatet0 s 0o

,000/4e
 sOLUTION TO PREWEEK
OCTOBER 2018
A

Tt af avoi1abie ost
Add C'prorturity cot

Ans
Salt 0,000 70.000
6,O06
G0 42,000 e a i t of
a2 nve stune
SG&A 19,VMJ00 40,000 0,000
pront 2.00 2,000
9 Ansert A
RCO
7)(612%, t30e)0
9 Ae
Sales 0,000 0,000 700D
Var t o l
2, 1 1,000 14,00
x
shield
tet procees20,000 2
19,000 S6,000 3,000 44.0
(10,000) 20,00) (20,000) 10 Anscr y
SERA a0,000) (40,000) (40,000)
Phoft pcs5) 19,000 5S87 0.05 23,56
.000) (4,000) (7000)
13 A 71)-3.
Pertornmance Measures

sWer
t3M,a371)-
265,460
Ave. Stockhiolders Equty 12 Anstr
Lö00,000 + 12,000 26,000 155,000
206,000/4-500,500 Uaing 2 9 , PV (,950,000 4023 4
ROF: 96,000/50.0,500 192

2An5war A (150,000 4.212 450,000 5t,B00

income to common50,000-10,000r0) Working Capital Management
EPS 230,000/100,009 2 90
7.
3. Anoe
A
Anmual dividend yielo
60.000/12 5.000
b0,000/12 5.00
(60,000-5000)/2 0
Year 1 1/50
vear
c d 2 1/50
1/60
o.02 1320
0.0107
AnsvWef
Answer 6 AY recepts: 5020,000 1M
Inventory 120,000(2 1.5)p0,000
CoGs 60.o00- 120,000
Saies. 40,C00 6 00,090 Sc.000
ang fee
SAnsSWer 9,125 12
Inventory end 500,000 5300,000 Net Beneffs
3,3/9
Ave. inventory:
COGS: 400,000 8
(300S00)/2 =
400,000
,200,000 aAnsver

Anwicr 40,000 ,209

D/E atio 150/150 Ma.ntenance cust

Nel saviras
Ansvwer
EPS 15,000/6,000
19 Ansver
PPE 23/2.50 in A/R 720,000/360 75
0 Incredue 50.0008 159,000
o 000
Ase Arld1. nvcste cost 120,0002 24 000
Dividend yirtd 2/23 ddi, carry ng
0.067
729,000
000
4,000
ost

Incaeras
 7. Answer: D 3. Ansvwer: B
K= 2.11/23.12+0.05 0.141
EPS: 15,000/6,000
E : 23/2.50
2.50
. The question asked is current vield.
8. Anseers A (.081,000)/(2010-20) 0808
Dividend yvield: 2/23
0.067
SAnswer: A
9. Answer: B apital stricture
Debt: 15M/50M
change in ROl: (1.2.7)-1- 0.16 Equity: 5M/50
10. Ansner B ACC (.3796)+(.71296) 10.500
Inventory Conversion Period 6. Answer: A
SM/(30M/365) 60.83 The intermal rate OT returnwhen used as the

No. 11 C 9 v e se sum of Py cqualling the

5,000-2, do7 ent.

12. Answer: 3,000 157,392
EVA=NO1-(Ave. Inv. XWACC) 7. Answer: A
nvestment: 7M1.8M = 5.2M
Annual cash flow:
EVA: 3.2M-(5.2M-0.09) 2,732,000 (10,0004)-2,00o
Payback:
2,000
3Answer: D 2,000 2.5 years
red ROI: B. Answer: C
0.12 -(150,000/1M)- 0.27 WACC:
(370)
10.3%
+(.6129%) +(1*1096)
Answer B
s excess capacity that can be
S ToE transfer to
Answer:
1V
C
Divinn 40,000
price is Tax shield: 20,000.2
variahle
the v
e
coct
a r i d e cost Per unit cof PS0.
dster

Net proceeds
4,000
4,009
flo. 15 Duplication 10. Answer: 9

0Answer Dp
uood 6557+ 0.65 23.356
NOI 3125 8 1l. Answers C
Cost of investment (80M.1) BM (7.4M 4371)-3.5M 265,4
EVA 17M
12. Answer: C
7Answer C
25M Using 20o, PV(9,950,000.402)4M
Add(deduct)
13. Answer: C
Depreciation
Capital expenditures BM) (150,000 4.212-450,000 181,800
ncrease in working9 capitai
Free cash flow No. 14, C; 15. D; 16.D

18. Answer: C = 450,000

17. Answer: C
of: (1.8M.1)+ 270,000 (25,0004355)20,155
+(20,000-.S64)-1t00,000
RO 450,000/1.8 0.25

1 9 Answer: A 18. Answ

Segment income: Mx 0.15150,00o so00.4) 6,500
6.500-1.7411310
20 A 100,o00)/1M
(150,000 -100,000)/1M 0.05 Working Capital Management
1 Answer: D
2Answer 5 (200,00006)-(12500) 6,000
Dvestment
333,3333 2 Answert D S,160,000
Alt-1: 6M+(2M.08)
Cost of Capital & Capital Budgeting Alt 2 1.5M00)
6,050,000- 620.009
Ovantage, Alternative 1 J0.003
wer 8 rate that o
ment (50,000 3. Usetral & error calculation, the
ive egua cost is 1 0 (Choice C)
g80,000of 0) the
The sum of PV future cash fiows equais
a cero NPy 4. Answerz D
amount of investment, hence, yielding
Additional receivabie T20.00 d
150.000
2 24,000
Additiona interest 150,o00-
AnswerC
NPV: (25,0004.355)+(20,000.St4) -100,000
20.152 2o 000 20)-34,000 L20.003
K
Ansvwer: D
12/100-15
Operating ycle
14.12% N dererral period
6. Duplication versioncycie
No. 19, swer: D
Increa
7. Answer: A

(60,000- S000 0/125,000 dd t 20,000/

/360 75
150.000.8 50,000
150,000.8
(60,000-S,000)/2 x0.6 x0.08 1,320
Add1,
carrying cost 120,000 .2
20,000
4,000
8. Answer sales
Daly recelipts: 20,000=
50*20,0001M
1M Less 720,000
Add1, inte Variable cost 720,0008
1M 2.06 e
120,000
Add1. carrying cost (S76,000)
Fixed fee 50,000 ncrease in profit L24.000)
120,000
Processing fee
No. 20 Answer: C
Jo5 500.50 9,125 S9,125
Net benefits Interest income:
300,000 .05 5,000
9. Answer: 6 Add savings
Total 5,000
k= (1+1)- 20,000
Less Bank fees
K=1.02-1=8.24%% 10,000
Benefit
10,000
10. Answer: C
K- 12/(100-20) 15% No. 21 Answer: B
K 5 3//97x 365/52
0.2171
Second No. 10 Answer: AA
Net interest expense: QUANTITATIVE METHODS
(250,000 .06)
5,000.02) ,500 No. 1 Answer: C
Net proceeds: 250,000-25,000 20,000 x (3.75-3) -20,000
(5,000)
Ka 14,500/225,000 6.44% NO. 2 Answer: A
Bid of Plo0,000
NO. 11 Answer: C
Annual cost of financing: (100,000 .2)-(20,000 .8) ,000
(6% x PI00,000)+ ((P300,000 -P100,000) x B1id of P50,000
0.596) P7,000 (50,000.6)- (20,000.4) 22,000
No. 3 Answer:
No. 12 Answer: C B
Proposed
SOM.95*.6+36050 3,958,333 2 S00
Present: 5OM.7 36075 291.667
Decrease in Accts. R Dle
333,334 HOurs
necessary to0 produce
(4x 640) -(2x B00)
third and fourth
960
units

No. 13
Answer.
50M0 2,500,000 No.
4 Answer B
EeAne 2333.334 0.1 Weekly sales: 10,000/50
333,333 afa 20

Decrease in before-tax pront 2.166.667 Reorder noiat

100
No. 14 Answers C P
Avoldable cost o, S Answert D
40,000-4.045 7,200
Maintenance cost 20,000/250 30 2,400
Net savin9s Safety stock
Reorder point
No. 15 Answer: D
THEORY
06,300.2 12,.500

3.13 2370 0
T 1,062,500.7 t 237,500 L.c 8.0
8 9.A
Answer: B 10.A
No. 16
No. 17 Answer:
The total number of units solid on or before
anuary 1 ts 700 with peso value of P2,000 The
or P.560,
amount of casn received isP7,000 0.98

No. 15 2M/100,0000
Colec vs: 2.5M/S0,000
2.5M/S0,000
Inventory cycie days: