Using problems P7-8 and P7-9 at the end of chapter 7, compute the total cost under the two separate scenarios in a 1-2 page document. Clearly label your calculations and explain the differences in the two scenarios.
P7-8(Budget for Internal service Fund)The City of Eagle Rock uses an Internal Service Fund to provided printing services to its various departments. It bills departments on the basis of an estimated rate per page of printed material, computed on the accrual basis of accounting. From the following information, compute the total cost that will be used to develop the cost per page. Assume that the equipment in the item 6 was contributed by the city and that the pricing objective was to recoup the cost of equipment in the rate charged over the life of the equipment.
- Inventory of paper on hand at beginning of year: $10, 000.
- Estimated paper purchase during the year: $60,000.
- Estimated amount of paper to be consumed during the year: $55,000.
- Estimated salaries to be paid during the year: $255,000.
- Estimated salaries earned during the year, including both what was paid and what was owed at year end: 265,000.
- Cost of equipment on hand at beginning of the year (estimated life was 10 years):$1,000,000.
P7-9 (Continuation of P7-8)Assume the information presented in P7-7, except that the city did not contribute the equipment. Instead, the manager of the Internal Service Fund arranged to buy the equipment, paying for it over a period of 5 years. The terms of the acquisition required annual payments of $200,000 at the end of each year, with interest of 8% on the unpaid balance. The first payment was made, and it is in the second year of operation. Assume also that the fund has just enough cash on hand to finance its working capital needs, such as inventory requirements. Using these assumptions, determine and explain the different calculation requirements.
Your submission must include the following:
- Attach the Excel spreadsheet to your Word document with your calculations.
- A one- to two-page summary of the computations of the total cost of printing services based on items 1-6 above.
- One additional page determining and explaining your different calculation requirements.
Our Service Charter
-
Excellent Quality / 100% Plagiarism-Free
We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers. -
Free Revisions
We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed. -
Confidentiality / 100% No Disclosure
We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service. -
Money Back Guarantee
If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit. -
24/7 Customer Support
We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.