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22 September, 09:28

Acme Manufacturing is producing $4,060,000 worth of goods this year and expects to sell its entire production. It also is planning to purchase $1,500,000 in new equipment during the year. At the beginning of the year, the company has $500,000 in inventory in its warehouse.

1. Find actual investment and planned investment if:

(a) Acme actually sells $3,850,000 worth of goods.

(b) Acme actually sells $4,000,000 worth of goods.

(c) Acme actually sells $4,200,000 worth of goods

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  1. 22 September, 09:29
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    actual investment = $1560000

    actual investment = $1710000

    actual investment = $1360000

    and

    planned investment = $1500000

    Explanation:

    given data

    producing goods = $4,060,000

    new equipment = $1,500,000

    inventory in warehouse = $500,000

    to find out

    actual investment and planned investment

    solution

    first if sell at = $3850000

    unplanned investment is = producing goods - sell

    unplanned investment = $4,060,000 - $3850000

    unplanned investment = $60000

    so

    actual investment = planned investment + unplanned investment

    actual investment = $1,500,000 + $60,000

    actual investment = $1560000

    and

    next if actually sells is = $4,000,000

    unplanned investment = $4,060,000 - $4,000,000

    unplanned investment = $210,000

    so

    actual investment = planned investment + unplanned investment

    actual investment = $1,500,000 + $210,000

    actual investment = $1710000

    and

    next if actually sells is = $4,200,000

    unplanned investment = $4,060,000 - $4,200,000

    unplanned investment = $140,000

    so

    actual investment = planned investment + unplanned investment

    actual investment = $1,500,000 + $140,000

    actual investment = $1360000
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