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##### Kelly's Boutique has several questions for you tha...

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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) Check figures: File 7-05 Hi-Lo Method ?Variable cost/employee $3,318.18 Least Squares / Regression Method ?Fixed cost $19,408.19 File 7-06 Percentage of Sales Method ?Allowance for uncollectible accounts (end) 28,000 Aging Method ?Allowance for uncollectible accounts (end) 19,020

Paper#6603 | Written in 18-Jul-2015

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