Accounting Project

KB5678

I SEE THE LIGHT Khalid, when you are ready to have your work graded you will upload this file KB5678.xls, or KB5678.xlsx, to the same screen that the project was downloaded from:

F711 130903

www.cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File.

Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission.

You may find it easier to work on this project if you print a hard copy of all the pages.

There are alternative methods of solving problems. To insure similar answers and to guarantee that you are graded correctly please follow the instructions as to rounding.

NOTE: If there are any questions about the project e-mail [email protected] or call 305.284.6296.Grade will be based upon answers entered into the shaded boxes.

FAQ 01 What is the difference between rounding a number and rounding up a number?

Given: Cost of a Taxi $100.00 Number of Passengers 3

Find Cost per Passenger Without rounding $33.333333 =C3/C4Rounding to two decimals $33.330000 =ROUND(C3/C4,2)Roundup to two decimals $33.340000 =ROUNDUP(C3/C4,2)

FAQ 02 When I upload it, the results show that I have an answer wrong, yet that answer is needed for another question which is marked correct. The computer is giving you part credit. Given: Width 10 ft

Length 12 ftCost per sq. ft. $6

Find {1.1} Area ----- 100 sq ft (wrong){1.2} Cost ---- $600 correct based on the wrong area. Note if the area is corrected,120 sq ft, the cost would be wrong.

FIRST LAST number FileKhalid Bakri 5678 KB5678

I SEE THE LIGHTBackground Information

I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lamps/nightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations.

The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp; a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models.

There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties.

Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas:

Part 1 Fixed and Variable Cost Determinations - Unit Cost CalculationsPart 2 Cost Volume Relationships - Profit PlanningPart 3 BudgetsPart 4 Process CostingPart 5 Job Order CostingPart 6 Standard Costing - Variance AnalysisPart 7 Capital Decision Making

To upload your work to Big Al the file without changing the name. Pay attention to the specific location that Excel saves the file. Return to the bottom of the page that you downloaded the file from; Cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update.

Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission.

You may find it easier to work on this project if you print a hard copy of all the pages.

NOTE: If there are any questions about the project e-mail [email protected] or call 305.284.6296.Grade will be based upon answers entered into the shaded boxes.

I See The LightProjected Income Statement

For the Period Ending December 31, 20x1

Sales 25,000 lamps @ $45.00 $ 1,125,000.00 Cost of Goods Sold @ $30.00 750,000.00 Gross Profit $ 375,000.00 Selling Expenses:

Fixed $ 23,000.00 Variable (Commission per unit) @ $3.00 75,000.00 $ 98,000.00

Administrative Expenses:Fixed $ 42,000.00 Variable @ $2.00 50,000.00 92,000.00

Total Selling and Administrative Expenses: 190,000.00 Net Profit $ 185,000.00

I See The LightProjected Balance SheetAs of December 31, 20x1

Current AssetsCash $ 34,710.00 Accounts Receivable 67,500.00 Inventory

Raw Material Lamp Kits 500 @ $16.00 8,000.00 Work in Process 0 - Finished Goods 3000 @ $30.00 90,000.00

Total Current Assets $ 200,210.00

Fixed AssetsEquipment $ 20,000.00 Accumulated Depreciation 6,800.00 Total Fixed Assets 13,200.00 Total Assets $ 213,410.00

Current LiabilitiesAccounts Payable $ 54,000.00 Total Liabilities $ 54,000.00

Stockholder's EquityCommon Stock $ 12,000.00 Retained Earnings 147,410.00 Total Stockholder's Equity 159,410.00 Total Liabilities and Stockholder's Equity $ 213,410.00

Khalid Bakri5930

PART 1Fixed and Variable Cost Determinations Unit Cost Calculations

The projected cost of a lamp is calculated based upon the projected increases or decreases tocurrent costs. The present costs to manufacture one lamp are:

Lamp Kit: $16.0000000 per lampDirect Labor: 2.0000000 per lamp (4 lamps/hr.)Variable Overhead: 2.0000000 per lampFixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps)

Cost per lamp: $30.0000000 per lamp

Expected increases for 20x2 When calculating projected increases round to TWO ($0.00) decimal places.

1. Material Costs are expected to increase by 4.00% .

2. Labor Costs are expected to increase by 4.50%.

3. Variable Overhead is expected to increase by 2.00%.

4. Fixed Overhead is expected to increase to $280,000.

5. Fixed Administrative expenses are expected to increase to $62,000.

6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 6.50%.

7. Fixed selling expenses are expected to be $39,000 in 20x2.

8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 3.50%.

On the following schedule develop the following figures:

1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp.

2- 20x2 Projected Variable Unit Cost per lamp.

3- 20x2 Projected Fixed Costs.

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I See The Light, IncSchedule of Projected Costs

Variable Manufacturing Unit Cost20x1 Cost

Lamp Kit $16.64 {4.01} 2Labor $2.09 {4.02} 2Variable Overhead $2.06 {4.03} 2

Projected Variable Manufacturing Cost Per Unit $20.79 {4.04} 2

Total Variable Cost Per Unit20x1 Cost

Variable Selling 3.08 {4.05} 2Variable Administrative 2.07 {4.06} 2Projected Variable Manufacturing Unit Cost 20.79 {4.04} 2

Projected Total Variable Cost Per Unit 25.94 {4.07} 2

Schedule of Fixed Costs20x1 Cost 20x2 Cost

Fixed Overhead $ 290,000.00 {4.08} 2 (normal capacity of _________ lamps @ __ )Fixed Selling $ 39,000.00 {4.09} 2Fixed Administrative $ 62,000.00 {4.10} 2

Projected Total Fixed Costs $ 391,000.00 {4.11} 2

Projected Percent

Increase 20x2 Cost Rounded to 2

Decimal Places

Projected Percent

Increase 20x2 Cost Rounded to 2

Decimal Places

Projected Percent

Increase

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PART 2Cost Volume Relationships -Profit Planning

Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysisbased on the following assumptions.Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to roundup to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the number of units and then multiply by the selling price per unit.

1. For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contributionmargin ratio for each lamp sold?

Contribution Margin per unit (Round to two places, $##.##) $19.06 {5.01} 2

Contribution Margin Ratio (Round to four places,% is two of those places ##.##%) 42.36% {5.02} 4

2. For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $197,500 . What would sales in units have to be in 20x2 to reach the profit goal?

{5.03} 0

3. For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $50,000.00 how many lampsmust be sold to breakeven?

21,138 units {5.04} 0

Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)


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4. For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $5.00 a unit how many lampsmust be sold to breakeven?

27,810 units {6.01} 0

5. For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $5.00 a unit how many lampsmust be sold to breakeven?

16,252 units {6.02} 0

6. If for 20x2 the selling price per lamp is increased to $50.00 a unit how many lamps must be sold to breakeven?

16,252 units {6.03} 0

7. If for 20x2 the selling price per lamp is decreased to $40.00 a unit how many lamps must be sold to breakeven?

27,810 units {6.04} 0





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PART 3Budgets

Division N has decided to develop its budget based upon projected sales of 43,000 lamps at $55.00 per lamp.

The company has requested that you prepare a master budget for the year. This budget is to be usedfor planning and control of operations and should be composed of:

1. Production Budget

2. Materials Budget

3. Direct Labor Budget

4. Factory Overhead Budget

5. Selling and Administrative Budget

6. Cost of Goods Sold Budget

7. Budgeted Income Statement

8. Cash Budget

Notes for Budgeting:

The company wants to maintain the same number of units in the beginning and ending inventories ofwork-in-process, and electrical parts while increasing the inventory of Lamp Kits to 725 pieces anddecreasing the finished goods by 20%.

Complete the following budgets

1 Production Budget

Planned SalesDesired Ending Inventory of Finished GoodsTotal Needed Less: Beginning Inventory

Total Production {7.01} 0

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2 Materials Budget

Lamp KitsNeeded for Production 42,400 units {8.01} 0Desired Ending Inventory 725 units {8.02} 0Total Needed 43,125 units {8.03} 0 Less: Beginning Inventory 500 units {8.04} 0Total Purchases Cost per piece $ 16.64 {8.05} 2 Cost of Purchases (Round to two places, $##.##) $ 709,280.00 {8.06} 0

3 Direct Labor Budget

Labor Cost Per Lamp $ 2.09 {8.07} 2ProductionTotal Labor Cost (Round to two places, $##.##) $ 88,616.00 {8.08} 2

4 Factory Overhead Budget

Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be ProducedTotal Variable Factory Overhead (Round to two places, $##.##) $ 87,344.00 {8.09} 2Fixed Factory Overhead $ 290,000.00 {8.10} 2

Total Factory Overhead (Round to two places, $##.##) $ 377,344.00 {8.11} 2

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4 Factory Overhead Budget

Overhead Allocation rate based on: 1. Number of Units

Total Factory Overhead / Number of Units (Round to two places, $##.##) $8.90 {9.01} 2

5 Cost of making one unit next yearCost of one Lamp Kit Labor Cost Per Lamp $2.09 {9.02} 2Factory overhead per unit 2

2Total cost of one unit $ 27.63 {9.03} 2(Round to two places, $##.##)

6 Selling and Admin. Budget

Fixed SellingVariable Selling (Round to two places, $##.##) $132,440.00 {9.04} 2Fixed AdministrativeVariable Administrative (Round to two places, $##.##) $ 89,010.00 {9.05} 2Total Selling and Administrative (Round to two places, $##.##) $ 322,450.00 {9.06} 2

7

Beginning Inventory, Finished Goods $ 90,000.00 {9.07} 2Production Costs: Materials: Lamp Kits: Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits $ 12,064.00 {9.08} 2 Lamp Kits Used In Production

Total Materials: $ 705,216.00 {9.09} 2 Labor $ 88,616.00 {9.10} 2 Overhead $ 377,344.00 {9.11} 2Cost of Goods Available $ 1,261,176.00 {9.12} 2 Less: Ending Inventory, Finished Goods $ 66,312.00 {9.13} 2Cost of Goods Sold $ 1,194,864.00 {9.14} 2

Cost of Goods Sold Budget - Assume FIFO (First-In, First-Out) and overhead is applied based on the number of units to be produced.

Round dollars to two places, $##.##

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7 Budgeted Income Statement

SalesCost of Goods SoldGross ProfitSelling Expenses & Admin. ExpensesNet Income $ 503,686.00 {10.01} 2

8 Cash Budget

Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.)

1. 20.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February.2. 84.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February.3. All other manufacturing and operating costs are paid for when incurred.4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses.5. Minimum Cash Balance needed for 20x2, $150,000 .

I See The LightProjected Cash Budget

For the Year Ending December 31, 20x2

Beginning Cash BalanceCash Inflows:

Sales Collections:Account Receivable (Sales last year not collected) $ 67,500.00 {10.02} 2Sales made and collected in 20x2 $ 1,576,380.00 {10.03} 2Cash Available $ 1,678,590.00 {10.04} 2

Cash Outflows:Purchases

Accounts Payable (Purchases last year)Purchases made and paid for in 20x2 $ 595,795.20 {10.05} 2

Other Manufacturing CostsDirect LaborTotal Manufacturing Overhead

Selling and AdministrativeLess: Depreciation $ 2,346.00 {10.06} 2

Total Cash Outflows $ 1,435,859.20 {10.07} 2

Budgeted Cash Balance before financing $ 242,730.80 {10.08} 2Needed Minimum Balance

Amount to be borrowed (if any) $ - {10.09} 2

Budgeted Cash Balance $ 242,730.80 {10.10} 2


Khalid Bakri5930

PART 4

Process Costing - Weighted Average

General Information

The I See The Light Company has a related company that produces the figurines. They use process costingin the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars.The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout.

Month of January

Selected information for January is presented below. Note that the applied overhead rate was50% of direct labor costs in the molding department.

Molding Department

Goods in-process as of January 1 were 3,700 figurines at a cost of $68,394.00. Of this amount, $5,994.00 was fromraw materials added, $41,600.00 for labor and $20,800.00 for overhead. These 3,700 figurines were assumed to be 80.00% complete as to labor and overhead.

During January, 26,000 units were started, $40,338.00 of materials and $26,440.00 of labor costs were incurred.

The 6,000 figurines that were in-process at the end of January were assumed to be 25.00% complete tolabor and overhead.

All figurines in January passed inspection.

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January

MOLDING

Physical Flow of Units

Work-in-Process - BeginningUnits Started this PeriodUnits to Account for

Total transferred out 1,951 units {12.01} 0Work-in-Process - Ending 1,919 units {12.02} 0Total Accounted for

Equivalent Units Material (Round to two places, ##,###.##) 25,700.00 {12.03} 2

Equivalent Units Conversion (Round to two places, ##,###.##) {12.04} 2

Total cost of Material (Round to two places, ##.###.##) {12.05} 2

Total cost of Conversion (Round to two places, ##.###.##) {12.06} 2Total cost to account for (Round to two places, ##.###.##) {12.07} 2

Cost per equivalent unit of Material (Round to two places, ###.##) {12.08} 2

Cost per equivalent unit of Conversion (Round to two places, ###.##) {12.09} 2

Cost of the ending inventory, material and convesion (Round to two places, $###,###.## ) {12.10} 2

Cost of the units transferred, material and convesion (Round to two places, $###,###.## ) {12.11} 2

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PART 5

Job Order Costing

To keep records of the actual cost of a special order job, a Job Order Cost System has been developed.Overhead is applied at the rate of 50% of the direct labor cost.

Job Order Costing Section

On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. Thejob called for 4,000 customized lamps. The following set of transactions occurred fromJanuary 5 until the job was completed:

5-Jan Purchased 4,200 Lamp Kits @ $16.40 per kit.9-Jan 4,150 sets of Lamp Kits were requisitioned.

17-Jan Payroll of 600 Direct Labor Hours @ $9.40 per hour.30-Jan Payroll of 650 Direct Labor Hours @ $9.65 per hour.30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were

used or scrapped, and are a cost of normal processing.

Month End Overhead InformationActual Variable Manufacturing Overhead $ 1,325.00 Actual Fixed Manufacturing Overhead $ 40,373.45

Cost of Direct Material Incurred in Manufacturing Job 2407

$ 68,880.00 {13.01} 2

Cost of Direct Labor Incurred in Manufacturing Job 2407

$ 12,037.50 {13.02} 2

Cost of Manufacturing Overhead Applied to Job 2407

$ 6,018.75 {13.03} 2

Cost of manufacturing one lamp

$ 21.79 {13.04} 2

Round to two places, $##.##

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PART 6

Standard Job Order Costing - Variance Analysis

Special order lamps are manufactured in division S. Because of the precise nature of the process astandard cost system has been developed. The following standards are used for the special orders:

StandardsLamp Kits $ 16.000000 per lampDirect Labor 2.400000 per lamp (4 lamps/hr.)Variable Overhead 0.250000 per lamp (4 lamps/hr.)

** Fixed Overhead 10.000000 per lamp Total $ 28.650000

** Fixed overhead is based on expected production of 4,010 customized lamps each month.

To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entriesare made to the Job Order System at actual cost (overhead is applied based on actual labor hours)while entries are made to the accounting system at standard. Variance analysis is used to analyze the differences.

Job Order Costing Section

On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. Thejob called for 4,000 customized lamps. The following set of transactions occurred fromJanuary 5 until the job was completed:

5-Jan Purchased 4,200 Lamp Kits @ $16.40 per kit.9-Jan 4,150 sets of Lamp Kits were requisitioned.

17-Jan Payroll of 600 Direct Labor Hours @ $9.40 per hour.30-Jan Payroll of 650 Direct Labor Hours @ $9.65 per hour.30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were

used or scrapped.

Month End Overhead InformationActual Variable Overhead $ 1,325.00 Actual Fixed Overhead $ 40,373.45

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How many Lamps were completed?

Note: Show favorable variances as negative numbers

What was the total material price variance for the Lamp Kits purchased? $ 1,680.00 {15.01} 2

What was the material usage variance for Lamp Kits? $ 3,360.00 {15.02} 2

What was the direct labor efficiency variance ? $ 2,424.00 {15.03} 2

What was the direct labor rate variance? $ 37.50 {15.04} 2


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Note: Show favorable variances as negative numbers

$ 252.50 ### 2

$ 75.00 ### 2

### 2

### 2

What was the variable overhead efficiency variance ?

What was the variable OH spending variance ?

What is the fixed OH volume (denominator) variance?

What is the fixed OH spending variance?

Khalid Bakri5930

PART 7

Capital Decision Making

Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that acold soda machine would be appreciated by his workers, and an appreciated worker is a good worker. He has priced a machine at a national member only warehouse for $2,050. The machine should beusable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 10 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cans) costs $6.24 and Big Al believes that a price of $.75 per can would win him good will.

What is the estimated annual sales in cans of soda?

2,500 cans {17.01} 0

What is the contribution margin per can of soda? (rounded to two places, $#.##)

$ 0.49 {17.02} 2

How many cans of soda must be sold each year to breakeven? (Round up to zero places, ###,### cans)

1,463 cans {17.03} 0

Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##)

$ 1,225.00 {17.04} 2

What is the payback period in years? (rounded to two places, #.## years)

1.76 years {17.05} 2

If the time value of money is 12% per year what is the net present value? Use the tables on page 18.

$ 792.45 {17.06} 2

What is the internal rate of return. Pick the closest interest rate from the tables on page 18.

32.00% {17.07} 3

Present Value of Annuity $1.00 in Arrears 3 Periods

Interest Periods Interest Periods

Rate 3 4 5 6 Rate 3 4 5 6 Factor Factor 2.0% 2.884 3.808 4.713 5.601 50.5% 1.399 1.594 1.724 1.810 - 100.0% 2.0% 2.884 2.5% 2.856 3.762 4.646 5.508 51.0% 1.391 1.584 1.711 1.795 0.878 99.5% 2.5% 2.856 3.0% 2.829 3.717 4.580 5.417 51.5% 1.383 1.573 1.698 1.781 0.882 99.0% 3.0% 2.829 3.5% 2.802 3.673 4.515 5.329 52.0% 1.375 1.563 1.686 1.767 0.885 98.5% 3.5% 2.802 4.0% 2.775 3.630 4.452 5.242 52.5% 1.368 1.553 1.674 1.753 0.889 98.0% 4.0% 2.775 4.5% 2.749 3.588 4.390 5.158 53.0% 1.360 1.542 1.662 1.740 0.893 97.5% 4.5% 2.749 5.0% 2.723 3.546 4.329 5.076 53.5% 1.352 1.532 1.650 1.726 0.896 97.0% 5.0% 2.723 5.5% 2.698 3.505 4.270 4.996 54.0% 1.345 1.523 1.638 1.713 0.900 96.5% 5.5% 2.698 6.0% 2.673 3.465 4.212 4.917 54.5% 1.337 1.513 1.626 1.700 0.903 96.0% 6.0% 2.673 6.5% 2.648 3.426 4.156 4.841 55.0% 1.330 1.503 1.615 1.687 0.907 95.5% 6.5% 2.648 7.0% 2.624 3.387 4.100 4.767 55.5% 1.323 1.494 1.604 1.674 0.911 95.0% 7.0% 2.624 7.5% 2.601 3.349 4.046 4.694 56.0% 1.315 1.484 1.592 1.662 0.914 94.5% 7.5% 2.601 8.0% 2.577 3.312 3.993 4.623 56.5% 1.308 1.475 1.581 1.649 0.918 94.0% 8.0% 2.577 8.5% 2.554 3.276 3.941 4.554 57.0% 1.301 1.466 1.570 1.637 0.922 93.5% 8.5% 2.554 9.0% 2.531 3.240 3.890 4.486 57.5% 1.294 1.457 1.560 1.625 0.926 93.0% 9.0% 2.531 9.5% 2.509 3.204 3.840 4.420 58.0% 1.287 1.447 1.549 1.613 0.930 92.5% 9.5% 2.509

10.0% 2.487 3.170 3.791 4.355 58.5% 1.280 1.439 1.539 1.602 0.933 92.0% 10.0% 2.487 10.5% 2.465 3.136 3.743 4.292 59.0% 1.273 1.430 1.528 1.590 0.937 91.5% 10.5% 2.465 11.0% 2.444 3.102 3.696 4.231 59.5% 1.266 1.421 1.518 1.579 0.941 91.0% 11.0% 2.444 11.5% 2.423 3.070 3.650 4.170 60.0% 1.260 1.412 1.508 1.567 0.945 90.5% 11.5% 2.423 12.0% 2.402 3.037 3.605 4.111 60.5% 1.253 1.404 1.498 1.556 0.949 90.0% 12.0% 2.402 12.5% 2.381 3.006 3.561 4.054 61.0% 1.247 1.395 1.488 1.545 0.953 89.5% 12.5% 2.381 13.0% 2.361 2.974 3.517 3.998 61.5% 1.240 1.387 1.478 1.534 0.957 89.0% 13.0% 2.361 13.5% 2.341 2.944 3.475 3.943 62.0% 1.234 1.379 1.468 1.524 0.961 88.5% 13.5% 2.341 14.0% 2.322 2.914 3.433 3.889 62.5% 1.227 1.371 1.459 1.513 0.965 88.0% 14.0% 2.322 14.5% 2.302 2.884 3.392 3.836 63.0% 1.221 1.362 1.449 1.503 0.969 87.5% 14.5% 2.302 15.0% 2.283 2.855 3.352 3.784 63.5% 1.214 1.354 1.440 1.492 0.974 87.0% 15.0% 2.283 15.5% 2.264 2.826 3.313 3.734 64.0% 1.208 1.347 1.431 1.482 0.978 86.5% 15.5% 2.264 16.0% 2.246 2.798 3.274 3.685 64.5% 1.202 1.339 1.422 1.472 0.982 86.0% 16.0% 2.246 16.5% 2.228 2.770 3.236 3.636 65.0% 1.196 1.331 1.413 1.462 0.986 85.5% 16.5% 2.228 17.0% 2.210 2.743 3.199 3.589 65.5% 1.190 1.323 1.404 1.452 0.991 85.0% 17.0% 2.210 17.5% 2.192 2.716 3.163 3.543 66.0% 1.184 1.316 1.395 1.443 0.995 84.5% 17.5% 2.192 18.0% 2.174 2.690 3.127 3.498 66.5% 1.178 1.308 1.386 1.433 0.999 84.0% 18.0% 2.174 18.5% 2.157 2.664 3.092 3.453 67.0% 1.172 1.301 1.378 1.424 1.004 83.5% 18.5% 2.157 19.0% 2.140 2.639 3.058 3.410 67.5% 1.166 1.293 1.369 1.414 1.008 83.0% 19.0% 2.140 19.5% 2.123 2.613 3.024 3.367 68.0% 1.160 1.286 1.361 1.405 1.013 82.5% 19.5% 2.123 20.0% 2.106 2.589 2.991 3.326 68.5% 1.155 1.279 1.352 1.396 1.017 82.0% 20.0% 2.106 20.5% 2.090 2.564 2.958 3.285 69.0% 1.149 1.272 1.344 1.387 1.022 81.5% 20.5% 2.090 21.0% 2.074 2.540 2.926 3.245 69.5% 1.143 1.265 1.336 1.378 1.026 81.0% 21.0% 2.074 21.5% 2.058 2.517 2.895 3.205 70.0% 1.138 1.258 1.328 1.369 1.031 80.5% 21.5% 2.058 22.0% 2.042 2.494 2.864 3.167 70.5% 1.132 1.251 1.320 1.361 1.036 80.0% 22.0% 2.042 22.5% 2.027 2.471 2.833 3.129 71.0% 1.127 1.244 1.312 1.352 1.040 79.5% 22.5% 2.027 23.0% 2.011 2.448 2.803 3.092 71.5% 1.121 1.237 1.304 1.344 1.045 79.0% 23.0% 2.011 23.5% 1.996 2.426 2.774 3.056 72.0% 1.116 1.230 1.297 1.335 1.050 78.5% 23.5% 1.996 24.0% 1.981 2.404 2.745 3.020 72.5% 1.111 1.224 1.289 1.327 1.055 78.0% 24.0% 1.981 24.5% 1.967 2.383 2.717 2.986 73.0% 1.105 1.217 1.281 1.319 1.060 77.5% 24.5% 1.967 25.0% 1.952 2.362 2.689 2.951 73.5% 1.100 1.210 1.274 1.311 1.064 77.0% 25.0% 1.952 25.5% 1.938 2.341 2.662 2.918 74.0% 1.095 1.204 1.267 1.303 1.069 76.5% 25.5% 1.938 26.0% 1.923 2.320 2.635 2.885 74.5% 1.090 1.198 1.259 1.295 1.074 76.0% 26.0% 1.923 26.5% 1.909 2.300 2.609 2.853 75.0% 1.085 1.191 1.252 1.287 1.079 75.5% 26.5% 1.909 27.0% 1.896 2.280 2.583 2.821 75.5% 1.079 1.185 1.245 1.279 1.085 75.0% 27.0% 1.896 27.5% 1.882 2.260 2.557 2.790 76.0% 1.074 1.179 1.238 1.272 1.090 74.5% 27.5% 1.882 28.0% 1.868 2.241 2.532 2.759 76.5% 1.069 1.172 1.231 1.264 1.095 74.0% 28.0% 1.868 28.5% 1.855 2.222 2.507 2.729 77.0% 1.064 1.166 1.224 1.256 1.100 73.5% 28.5% 1.855 29.0% 1.842 2.203 2.483 2.700 77.5% 1.060 1.160 1.217 1.249 1.105 73.0% 29.0% 1.842 29.5% 1.829 2.185 2.459 2.671 78.0% 1.055 1.154 1.210 1.242 1.111 72.5% 29.5% 1.829 30.0% 1.816 2.166 2.436 2.643 78.5% 1.050 1.148 1.204 1.235 1.116 72.0% 30.0% 1.816 30.5% 1.803 2.148 2.412 2.615 79.0% 1.045 1.143 1.197 1.227 1.121 71.5% 30.5% 1.803 31.0% 1.791 2.130 2.390 2.588 79.5% 1.040 1.137 1.190 1.220 1.127 71.0% 31.0% 1.791 31.5% 1.779 2.113 2.367 2.561 80.0% 1.036 1.131 1.184 1.213 1.132 70.5% 31.5% 1.779 32.0% 1.766 2.096 2.345 2.534 80.5% 1.031 1.125 1.177 1.206 1.138 70.0% 32.0% 1.766 32.5% 1.754 2.079 2.324 2.508 81.0% 1.026 1.120 1.171 1.199 1.143 69.5% 32.5% 1.754 33.0% 1.742 2.062 2.302 2.483 81.5% 1.022 1.114 1.165 1.193 1.149 69.0% 33.0% 1.742 33.5% 1.730 2.045 2.281 2.458 82.0% 1.017 1.108 1.158 1.186 1.155 68.5% 33.5% 1.730 34.0% 1.719 2.029 2.260 2.433 82.5% 1.013 1.103 1.152 1.179 1.160 68.0% 34.0% 1.719 34.5% 1.707 2.013 2.240 2.409 83.0% 1.008 1.097 1.146 1.173 1.166 67.5% 34.5% 1.707 35.0% 1.696 1.997 2.220 2.385 83.5% 1.004 1.092 1.140 1.166 1.172 67.0% 35.0% 1.696 35.5% 1.685 1.981 2.200 2.362 84.0% 0.999 1.087 1.134 1.160 1.178 66.5% 35.5% 1.685 36.0% 1.673 1.966 2.181 2.339 84.5% 0.995 1.081 1.128 1.153 1.184 66.0% 36.0% 1.673 36.5% 1.662 1.951 2.162 2.316 85.0% 0.991 1.076 1.122 1.147 1.190 65.5% 36.5% 1.662 37.0% 1.652 1.935 2.143 2.294 85.5% 0.986 1.071 1.116 1.141 1.196 65.0% 37.0% 1.652 37.5% 1.641 1.921 2.124 2.272 86.0% 0.982 1.066 1.111 1.135 1.202 64.5% 37.5% 1.641 38.0% 1.630 1.906 2.106 2.251 86.5% 0.978 1.061 1.105 1.129 1.208 64.0% 38.0% 1.630 38.5% 1.620 1.892 2.088 2.229 87.0% 0.974 1.055 1.099 1.123 1.214 63.5% 38.5% 1.620 39.0% 1.609 1.877 2.070 2.209 87.5% 0.969 1.050 1.094 1.117 1.221 63.0% 39.0% 1.609 39.5% 1.599 1.863 2.052 2.188 88.0% 0.965 1.045 1.088 1.111 1.227 62.5% 39.5% 1.599 40.0% 1.589 1.849 2.035 2.168 88.5% 0.961 1.040 1.082 1.105 1.234 62.0% 40.0% 1.589 40.5% 1.579 1.836 2.018 2.148 89.0% 0.957 1.036 1.077 1.099 1.240 61.5% 40.5% 1.579 41.0% 1.569 1.822 2.001 2.129 89.5% 0.953 1.031 1.072 1.093 1.247 61.0% 41.0% 1.569 41.5% 1.559 1.809 1.985 2.109 90.0% 0.949 1.026 1.066 1.087 1.253 60.5% 41.5% 1.559 42.0% 1.549 1.795 1.969 2.091 90.5% 0.945 1.021 1.061 1.082 1.260 60.0% 42.0% 1.549 42.5% 1.540 1.782 1.953 2.072 91.0% 0.941 1.016 1.056 1.076 1.266 59.5% 42.5% 1.540 43.0% 1.530 1.769 1.937 2.054 91.5% 0.937 1.012 1.050 1.071 1.273 59.0% 43.0% 1.530 43.5% 1.521 1.757 1.921 2.036 92.0% 0.933 1.007 1.045 1.065 1.280 58.5% 43.5% 1.521 44.0% 1.512 1.744 1.906 2.018 92.5% 0.930 1.002 1.040 1.060 1.287 58.0% 44.0% 1.512 44.5% 1.502 1.732 1.890 2.000 93.0% 0.926 0.998 1.035 1.054 1.294 57.5% 44.5% 1.502 45.0% 1.493 1.720 1.876 1.983 93.5% 0.922 0.993 1.030 1.049 1.301 57.0% 45.0% 1.493 45.5% 1.484 1.707 1.861 1.966 94.0% 0.918 0.989 1.025 1.044 1.308 56.5% 45.5% 1.484 46.0% 1.475 1.695 1.846 1.949 94.5% 0.914 0.984 1.020 1.039 1.315 56.0% 46.0% 1.475 46.5% 1.467 1.684 1.832 1.933 95.0% 0.911 0.980 1.015 1.033 1.323 55.5% 46.5% 1.467 47.0% 1.458 1.672 1.818 1.917 95.5% 0.907 0.975 1.010 1.028 1.330 55.0% 47.0% 1.458 47.5% 1.449 1.660 1.804 1.901 96.0% 0.903 0.971 1.006 1.023 1.337 54.5% 47.5% 1.449 48.0% 1.441 1.649 1.790 1.885 96.5% 0.900 0.967 1.001 1.018 1.345 54.0% 48.0% 1.441 48.5% 1.432 1.638 1.776 1.870 97.0% 0.896 0.962 0.996 1.013 1.352 53.5% 48.5% 1.432 49.0% 1.424 1.627 1.763 1.854 97.5% 0.893 0.958 0.992 1.008 1.360 53.0% 49.0% 1.424 49.5% 1.416 1.616 1.750 1.839 98.0% 0.889 0.954 0.987 1.003 1.368 52.5% 49.5% 1.416 50.0% 1.407 1.605 1.737 1.824 98.5% 0.885 0.950 0.982 0.999 1.375 52.0% 50.0% 1.407

99.0% 0.882 0.946 0.978 0.994 1.383 51.5% 50.5% 1.399 99.5% 0.878 0.942 0.973 0.989 1.391 51.0% 51.0% 1.391

100.0% 0.875 0.938 0.969 0.984 1.399 50.5% 51.5% 1.383 1.407 50.0% 52.0% 1.375

If off the chart use 100% 1.416 49.5% 52.5% 1.368

Interest Rate

Interest Rate

Present Value of Annuity $1.00 in Arrears 3 Periods

Interest Periods Interest Periods

Rate 3 4 5 6 Rate 3 4 5 6 Factor Factor Interest

RateInterest

Rate 1.424 49.0% 53.0% 1.360 1.432 48.5% 53.5% 1.352 1.441 48.0% 54.0% 1.345 1.449 47.5% 54.5% 1.337 1.458 47.0% 55.0% 1.330 1.467 46.5% 55.5% 1.323 1.475 46.0% 56.0% 1.315 1.484 45.5% 56.5% 1.308 1.493 45.0% 57.0% 1.301 1.502 44.5% 57.5% 1.294 1.512 44.0% 58.0% 1.287 1.521 43.5% 58.5% 1.280 1.530 43.0% 59.0% 1.273 1.540 42.5% 59.5% 1.266 1.549 42.0% 60.0% 1.260 1.559 41.5% 60.5% 1.253 1.569 41.0% 61.0% 1.247 1.579 40.5% 61.5% 1.240 1.589 40.0% 62.0% 1.234 1.599 39.5% 62.5% 1.227 1.609 39.0% 63.0% 1.221 1.620 38.5% 63.5% 1.214 1.630 38.0% 64.0% 1.208 1.641 37.5% 64.5% 1.202 1.652 37.0% 65.0% 1.196 1.662 36.5% 65.5% 1.190 1.673 36.0% 66.0% 1.184 1.685 35.5% 66.5% 1.178 1.696 35.0% 67.0% 1.172 1.707 34.5% 67.5% 1.166 1.719 34.0% 68.0% 1.160 1.730 33.5% 68.5% 1.155 1.742 33.0% 69.0% 1.149 1.754 32.5% 69.5% 1.143 1.766 32.0% 70.0% 1.138 1.779 31.5% 70.5% 1.132 1.791 31.0% 71.0% 1.127 1.803 30.5% 71.5% 1.121 1.816 30.0% 72.0% 1.116 1.829 29.5% 72.5% 1.111 1.842 29.0% 73.0% 1.105 1.855 28.5% 73.5% 1.100 1.868 28.0% 74.0% 1.095 1.882 27.5% 74.5% 1.090 1.896 27.0% 75.0% 1.085 1.909 26.5% 75.5% 1.079 1.923 26.0% 76.0% 1.074 1.938 25.5% 76.5% 1.069 1.952 25.0% 77.0% 1.064 1.967 24.5% 77.5% 1.060 1.981 24.0% 78.0% 1.055 1.996 23.5% 78.5% 1.050 2.011 23.0% 79.0% 1.045 2.027 22.5% 79.5% 1.040 2.042 22.0% 80.0% 1.036 2.058 21.5% 80.5% 1.031 2.074 21.0% 81.0% 1.026 2.090 20.5% 81.5% 1.022 2.106 20.0% 82.0% 1.017 2.123 19.5% 82.5% 1.013 2.140 19.0% 83.0% 1.008 2.157 18.5% 83.5% 1.004 2.174 18.0% 84.0% 0.999 2.192 17.5% 84.5% 0.995 2.210 17.0% 85.0% 0.991 2.228 16.5% 85.5% 0.986 2.246 16.0% 86.0% 0.982 2.264 15.5% 86.5% 0.978 2.283 15.0% 87.0% 0.974 2.302 14.5% 87.5% 0.969 2.322 14.0% 88.0% 0.965 2.341 13.5% 88.5% 0.961 2.361 13.0% 89.0% 0.957 2.381 12.5% 89.5% 0.953 2.402 12.0% 90.0% 0.949 2.423 11.5% 90.5% 0.945 2.444 11.0% 91.0% 0.941 2.465 10.5% 91.5% 0.937 2.487 10.0% 92.0% 0.933 2.509 9.5% 92.5% 0.930 2.531 9.0% 93.0% 0.926 2.554 8.5% 93.5% 0.922 2.577 8.0% 94.0% 0.918 2.601 7.5% 94.5% 0.914 2.624 7.0% 95.0% 0.911 2.648 6.5% 95.5% 0.907 2.673 6.0% 96.0% 0.903 2.698 5.5% 96.5% 0.900 2.723 5.0% 97.0% 0.896 2.749 4.5% 97.5% 0.893 2.775 4.0% 98.0% 0.889 2.802 3.5% 98.5% 0.885 2.829 3.0% 99.0% 0.882 2.856 2.5% 99.5% 0.878 2.884 2.0% 100.0% 0.875 2.912 1.5% 2.941 1.0% 2.970 0.5% 2.706 0.0%

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