4.

A CPA was asked to analyze the data below for a client. Selling price of new widget $ 20/unit Estimated sales 250,000 units Investment in additional equipment $4,000,000 Cost of production $17.76/unit The company's minimum required rate of return 12% Required: a. What are the projected sales dollars for the new product? b. What is the net operating income? c. Calculate residual income. d. Calculate the return on investment (ROI) e. Is this a good investment for the company? Why or why not? Show your calculations in the answer box. You can insert a table to organize your work.A client gave her CPA the data listed below. July August September Budgeted sales 52742333 $283,333 $235,333 Accounts receivable. beginning balance 583 .333 Accounts Payable beginning balance 5249.333 Sales collected in the month sales are made 75% Sales collected in the month alter sales are made 25% Cost of goods Sold is 83% of the current month's sales. The company budgets for ending nished goods inventory that is 45% of the following month's ICost of Goods Sold. Prepare a Schedule of Expected Cash Collections and a Merchandise Purchases Budget tor July and August. You should insert a table to organize your information. Show your calculations