kellys boutique has several questions for you


Kelly's Boutique has several questions for you that Excel can help answer. Kelly is planning for the future and would like you to prepare a present value analysis. Using the file ch7-04 complete a present value analysis for the following situations. Save the file as ch7-04_student_name (replacing student_name with your name). Print both a Value view and Formula view of this completed worksheet. Kelly would like to know the following:      
a. How much she would have to pay at the end of each year, assuming a 7 percent rate of return, to yield $100,000 at the end of 10 years.      
b. How much she would have at the end of 10 years if she invested $65,000 today, earning 5 percent per year.      
c. How much she would have at the end of 10 years if she invested $6,325 at the end of each year, earning 9 percent per year.      
d. How much she would have to invest today to have $154,324 in 10 years, earning 12 percent per year.      
   Kelly has a very fluctuating workforce based on seasonal demand. She's ranged from having 10 employees in one month to 32 employees in another month. Some employees are paid a salary, others are paid hourly. She would like to know more about how these costs behave. Use the file ch7-05 to complete a cost prediction worksheet. Save the file as ch7-05_student_name (replacing student_name with your name). The worksheet should do the following:      
a. Calculate variable cost per employee, fixed costs, and a prediction of payroll cost with 22 employees using the Hi-Lo method.      
b. Calculate variable cost per employee, fixed costs, and a prediction of payroll cost with 22 employees using the Least Squares/Regression method.      
c. Display a chart of payroll/employees with a trend line. (Be sure to modify each axis so your scatter diagram is better displayed, as you did earlier in this chapter)      
                         
   During a recent year Kelly's Boutique had sales on account of $6,000,000, collections of $5,800,000, write-offs of $45,000, a beginning balance in accounts receivable of $500,000, and a beginning balance in the allowance for uncollectible accounts of $37,000. At year end, $580,000 of accounts receivable were current, $39,000 were 0-30 days past due, $18,000 were 31-60 days past due, $10,000 were 61-90 days past due, and $8,000 were over 90 days past due. The company believes .6 percent of sales will not be collected. They also have experience that suggests that 1 percent of all current receivables, 8 percent of receivables 0-30 days past due, 20 percent of receivables 31-60 days past due, 25 percent of receivables 61-90 days past due, and 50 percent of receivables over 90 days 179180past due will not be collected. Using the file ch7-06, complete the allowance for uncollectible accounts analysis for both standard methods. Save the file as ch7- 06_student_name (replacing student_name with your name). Print both a Value view and Formula view of this completed worksheet.      
                         

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Accounting Basics: kellys boutique has several questions for you
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