The ceo of smartphone apps llc is preparing a loan

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The CEO of Smartphone Apps, LLC is preparing a loan application. Using the data below (only), prepare an Income Statement. Within this Income statement, include totals for Cost of Goods Sold, Gross Margin, Sales General, and Administrative, Earnings before Interest and Taxes, Pretax Income, and Net Income. Also compute the Profit Margin on Sales. Submit using a spreadsheet.

Net Revenue

$1,458,000


Production Labor Costs

$385,444


Material Costs

$247,500


Marketing

$127,000


Depreciation

$58,122


Research and Development

$98,000


Administrative

$258,300


Interest Expense

$21,608


Taxes

25%

of pretax Income

Slot Precision Services, Inc. has five alternative broaching machines/processes that are being studied. Only one will be chosen and the data is shown below.    Recommend the choice for management that uses the internal rate of return criterion. Compare this with the decision with that of a Present Worth criterion. Submit your solution in a spreadsheet.

MARR 15% EAR
Time Horizon 5 years
Alternatives Investment in year 0 Annual Cash Flow Salvage value in last year
1 $50,000 $18,000 $0
2 $250,000 $85,000 $75,000
3 $350,000 $105,000 $125,000
4 $600,000 $150,000 $400,000
5 $800,000 $165,000 $600,000

Reference no: EM13577769

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