MB6138

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Building Blocks of Accounting--A
I SEE THE LIGHT
Managerial Perspective, Enter
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Marco, whenUpload
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have your work graded you will upload this file MB6138.xls, or MB6138.xlsx,
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NOTE:
If there are any questions about the project
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305.284.6296.
Grade will be based upon answers entered
into the shaded boxes.

F710 160825
 Elf Village
Productions 50 Sheet Legal Pad
Building Blocks of Accounting .. A Financial Perspective
FAQ Page 1

FAQ 01 My file used to upload, why is it not uploading?

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 Elf Village
Productions 50 Sheet Legal Pad
Building Blocks of Accounting .. A Financial Perspective
FAQ Page 2

FAQ 02 What is the difference between rounding a number and rounding up a number?

Answer: B C D E F
1 Cost of a Taxi $ 100.00
2 Number of Passengers 3
3
4 Cost per Passenger
5 Without rounding 33.333333 =F1/F2
6 Rounding to two decimals 33.33 =ROUND(F1/F2,2)
7 Roundup to two decimals 33.34 =ROUNDUP(F1/F2,2)

FAQ 03 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.

Answer: The computer is giving you part credit.

Given: Width 10 ft
Length 12 ft
Cost 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 File
Marco Baeza 6138 MB6138

I SEE THE LIGHT

Background 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 Calculations

Part 2 Cost Volume Relationships - Profit Planning
Part 3 Budgets
Part 4 Process Costing
Part 5 Job Order Costing
Part 6 Standard Costing - Variance Analysis
Part 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 markfriedman@miami.edu or call 305.284.6296.
Grade will be based upon answers entered into the shaded boxes.
 Page 2

I See The Light

Projected 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 Light

Projected Balance Sheet
As of December 31, 20x1

Current Assets
Cash $ 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 Assets
Equipment $ 20,000.00
Accumulated Depreciation 6,800.00
Total Fixed Assets 13,200.00
Total Assets $ 213,410.00

Current Liabilities
Accounts Payable $ 54,000.00
Total Liabilities $ 54,000.00
Stockholder's Equity
Common 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
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Marco Baeza
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PART 1
Fixed and Variable Cost Determinations
Unit Cost Calculations

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

Lamp Kit: $16.0000000 per lamp

Direct Labor: 2.0000000 per lamp (4 lamps/hr.)
Variable Overhead: 2.0000000 per lamp
Fixed 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 6.50% .

2. Labor Costs are expected to increase by 5.00%.

3. Variable Overhead is expected to increase by 3.00%.

4. Fixed Overhead is expected to increase to $270,000.

5. Fixed Administrative expenses are expected to increase to $50,000.

6. Variable selling expenses (measured on a per lamp basis) are expected to increase
by 4.50%.

7. Fixed selling expenses are expected to be $33,000 in 20x2.

8. Variable administrative expenses (measured a per lamp basis) are expected to

increase by 6.50%.

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, Inc

Schedule of Projected Costs

Variable Manufacturing Unit Cost

Projected
20x1 Cost 20x2 Cost Rounded to 2
Percent
Decimal Places
Increase
Lamp Kit $17.04 {4.01} 2
Labor $2.10 {4.02} 2
Variable Overhead $2.06 {4.03} 2

Projected Variable Manufacturing Cost Per Unit $21.20 {4.04} 2

Total Variable Cost Per Unit

20x1 Cost Projected
20x2 Cost Rounded to 2
Percent
Decimal Places
Increase
Variable Selling 3 4.50% 3.14 {4.05} 2
Variable Administrative 2 6.50% 2.13 {4.06} 2
Projected Variable Manufacturing Unit Cost {4.04} 2

Projected Total Variable Cost Per Unit 25 26.47 {4.07} 2

Schedule of Fixed Costs Projected

20x1 Cost Percent 20x2 Cost
Increase
Fixed Overhead $ 270,000.00 {4.08} 2
(normal capacity of _________ lamps @ __ )
Fixed Selling $ 33,000.00 {4.09} 2
Fixed Administrative $ 50,000.00 {4.10} 2

Projected Total Fixed Costs $ 353,000.00 {4.11} 2

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PART 2
Cost Volume Relationships -
Profit Planning
Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis
based on the following assumptions.
Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round
up 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 contribution
margin ratio for each lamp sold?

45
26.47
Contribution Margin per unit (Round to two places, $##.##) $18.53 {5.01} 2

Contribution Margin Ratio (Round to four places,% is two of those places ##.##%) 41.18% {5.02} 4

2. For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $205,000 . What
would sales in units have to be in 20x2 to reach the profit goal?

353000 205000 558000

45 18.53
Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 30,114 units {5.03} 0

3. For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $75,000.00 how many lamps
must be sold to breakeven?

353000 75000 428000

18.53

Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 23,098 units {5.04} 0
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4. For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $7.50 a unit how many lamps
must be sold to breakeven?

353000
45 33.97 11.03

Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 32,004 units {6.01} 0

5. For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $7.50 a unit how many lamps
must be sold to breakeven?

353000
45 18.97 26.03
Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 13,562 units {6.02} 0

6. If for 20x2 the selling price per lamp is increased to $52.50 a unit how many lamps must be sold
to breakeven?

353000
52.5 26.47 26.03
Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 13,562 units {6.03} 0

7. If for 20x2 the selling price per lamp is decreased to $37.50 a unit how many lamps must be sold
to breakeven?

Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 32,004 units {6.04} 0
 Page 7

Marco Baeza
6392

PART 3
Budgets

Division N has decided to develop its budget based upon projected sales of 31,000 lamps at
$51.00 per lamp.
The company has requested that you prepare a master budget for the year. This budget is to be used
for 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 of
work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 650 pieces and
decreasing the finished goods by 20%.

Complete the following budgets

1 Production Budget

Planned Sales 31000

Desired Ending Inventory of Finished Goods
Total Needed
Less: Beginning Inventory

Total Production 30,400 units {7.01} 0

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2 Materials Budget

Lamp Kits
Needed for Production 30,400 units {8.01} 0
Desired Ending Inventory 650 units {8.02} 0
Total Needed 31,050 units {8.03} 0
Less: Beginning Inventory 500 units {8.04} 0
Total Purchases 30,550 units
Cost per piece $ 17.04 {8.05} 2
Cost of Purchases (Round to two places, $##.##) $ 520,572.00 {8.06} 0

3 Direct Labor Budget

Labor Cost Per Lamp $ 2.10 {8.07} 2

Production 30,400 units
Total Labor Cost (Round to two places, $##.##) $ 63,840.00 {8.08} 2

4 Factory Overhead Budget

Variable Factory Overhead:

Variable Factory Overhead Cost Per Unit $ 2.0600000
Number of Units to be Produced 30,400 units
Total Variable Factory Overhead (Round to two places, $##.##) $ 62,624.00 {8.09} 2
Fixed Factory Overhead $ 270,000.00 {8.10} 2

Total Factory Overhead (Round to two places, $##.##) $ 332,624.00 {8.11} 2

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4 Factory Overhead Budget

Overhead Allocation rate based on:

1. Number of Units 30400
Total Factory Overhead / Number of Units 332624
(Round to two places, $##.##) $10.94 {9.01} 2

5 Cost of making one unit next year

Cost of one Lamp Kit 17.04
Labor Cost Per Lamp $2.10 {9.02} 2
Cost of Factory overhead per unit $10.94 2
Goods 2
Sold Total cost of one unit $ 30.08 {9.03} 2
Budget (Round to two places, $##.##)
-
Assume
FIFO
6 (First-In,
Selling and Admin. Budget
First-
Out)
Fixedand Selling 33000
overhea
Variable Selling (Round to two places, $##.##) $97,340.00 {9.04} 2
d is Administrative
Fixed 50000
applied
Variable Administrative (Round to two places, $##.##) $ 66,030.00 {9.05} 2
based
Total
on theSelling and Administrative (Round to two places, $##.##) $ 246,370.00 {9.06} 2
number
of units
to be
7
produce Round dollars to two
d. places, $##.##
Beginning Inventory, Finished Goods $ 90,000.00 {9.07} 2
Production Costs:
Materials:
Lamp Kits: $ 8,000.000
Beginning Inventory $ 520,572.000
Purchased $ 528,572.000
Available for Use
Ending Inventory of Lamp Kits $ 11,076.00 {9.08} 2
Lamp Kits Used In Production

Total Materials: $ 517,496.00 {9.09} 2

Labor $ 63,840.00 {9.10} 2
Overhead $ 332,576.00 {9.11} 2
Cost of Goods Available $ 1,003,912.00 {9.12} 2
Less: Ending Inventory, Finished Goods $ 72,192.00 {9.13} 2
Cost of Goods Sold $ 931,720.00 {9.14} 2
 Page 10

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7 Budgeted Income Statement

Sales $ 1,581,000.00
Cost of Goods Sold $ 931,720.00
Gross Profit $ 649,280.00
Selling Expenses & Admin. Expenses $246,370.00
Net Income $ 402,910.00 {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. 23.00% 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. 89.00% 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, $160,000 .
I See The Light
Projected Cash Budget
For the Year Ending December 31, 20x2

Round dollars to two

places, $##.##
Beginning Cash Balance $ 34,710.000
Cash Inflows:
Sales Collections:
Account Receivable (Sales last year not collected) $ 67,500.00 {10.02} 2
Sales made and collected in 20x2 $ 1,217,370.00 {10.03} 2
Cash Available $ 1,319,580.00 {10.04} 2

Cash Outflows:
Purchases
Accounts Payable (Purchases last year) $ 54,000.000
Purchases made and paid for in 20x2 $ 463,309.08 {10.05} 2
Other Manufacturing Costs
Direct Labor $ 63,840.000
Total Manufacturing Overhead $ 332,624.000
Selling and Administrative $ 246,370.000
Less: Depreciation $ 2,118.00 {10.06} 2
Total Cash Outflows $ 1,158,025.08 {10.07} 2

Budgeted Cash Balance before financing $ 161,554.92 {10.08} 2

Needed Minimum Balance $ 160,000.000

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

Budgeted Cash Balance $ 161,554.92 {10.10} 2

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6392

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 costing
in 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 was
50% of direct labor costs in the molding department.

Molding Department

Goods in-process as of January 1 were 3,100 figurines at a cost of $25,536.00. Of this amount, $4,836.00 was from
raw materials added, $13,800.00 for labor and $6,900.00 for overhead. These 3,100 figurines were assumed to be
25.00% complete as to labor and overhead.

During January, 24,000 units were started, $37,982.00 of materials and $56,090.00 of labor costs were incurred.

The 5,000 figurines that were in-process at the end of January were assumed to be 40.00% complete to
labor and overhead.

All figurines in January passed inspection.

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Marco Baeza
6392

January

MOLDING

Physical Flow of Units

Work-in-Process - Beginning 3,100 units

Units Started this Period 24,000 units
Units to Account for 27,100 units

Total transferred out 22,100 units {12.01} 0

Work-in-Process - Ending 5,000 units {12.02} 0
Total Accounted for 27,100 units

Equivalent Units Material (Round to two places, ##,###.##) 27,100.00 {12.03} 2

Equivalent Units Conversion (Round to two places, ##,###.##) 18,500.00 {12.04} 2

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

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

Total 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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Marco Baeza
6392

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. The
job called for 4,000 customized lamps. The following set of transactions occurred from
January 5 until the job was completed:

5-Jan Purchased 4,125 Lamp Kits @ $16.75 per kit.

9-Jan 4,225 sets of Lamp Kits were requisitioned.
17-Jan Payroll of 610 Direct Labor Hours @ $9.50 per hour.
30-Jan Payroll of 660 Direct Labor Hours @ $9.75 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 Information

Actual Variable Manufacturing Overhead $ 1,600.20
Actual Fixed Manufacturing Overhead $ 40,623.45

Round to two places,

$##.##

Cost of Direct Material Incurred in Manufacturing Job 2407

{13.01} 2

Cost of Direct Labor Incurred in Manufacturing Job 2407

{13.02} 2

Cost of Manufacturing Overhead Applied to Job 2407

{13.03} 2

Cost of manufacturing one lamp

{13.04} 2
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Marco Baeza
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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 a
standard cost system has been developed. The following standards are used for the special orders:

Standards
Lamp Kits $ 16.000000 per lamp
Direct 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 4,011 customized lamps each month.

To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries
are 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. The
job called for 4,000 customized lamps. The following set of transactions occurred from
January 5 until the job was completed:

5-Jan Purchased 4,125 Lamp Kits @ $16.75 per kit.

9-Jan 4,225 sets of Lamp Kits were requisitioned.
17-Jan Payroll of 610 Direct Labor Hours @ $9.50 per hour.
30-Jan Payroll of 660 Direct Labor Hours @ $9.75 per hour.
30-Jan 3,989 lamps were completed and shipped. All materials requisitioned were
used or scrapped.

Month End Overhead Information

Actual Variable Overhead $ 1,600.20
Actual Fixed Overhead $ 40,623.45
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Marco Baeza
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How many Lamps were completed?

Note: Show favorable variances as negative numbers

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

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

What was the material usage variance for Lamp Kits? {15.02} 2

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

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

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Note: Show favorable variances as negative numbers

What was the variable overhead efficiency variance ? ### 2

What was the variable OH spending variance ? ### 2

What is the fixed OH volume (denominator) variance? ### 2

What is the fixed OH spending variance? ### 2

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Marco Baeza
6392

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 a
cold 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 $1,950. The machine should be
usable for 5 years, after which it would be inefficient, obsolete and would have to be disposed of at the
dump. Big Al believes that 11 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 $5.52 and Big Al believes that a price of $.60 per
can would win him good will.

What is the estimated annual sales in cans of soda?

{17.01} 0

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

{17.02} 2

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

{17.03} 0

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

{17.04} 2

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

{17.06} 2

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

{17.07} 3
 Page 18

Present Value of Annuity $1.00 in Arrears

5 Periods
Interest Periods Interest Periods
Interest Interest
Rate 3 4 5 6 Rate 3 4 5 6 Factor Rate Rate 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% 4.713
2.5% 2.856 3.762 4.646 5.508 51.0% 1.391 1.584 1.711 1.795 0.973 99.5% 2.5% 4.646
3.0% 2.829 3.717 4.580 5.417 51.5% 1.383 1.573 1.698 1.781 0.978 99.0% 3.0% 4.580
3.5% 2.802 3.673 4.515 5.329 52.0% 1.375 1.563 1.686 1.767 0.982 98.5% 3.5% 4.515
4.0% 2.775 3.630 4.452 5.242 52.5% 1.368 1.553 1.674 1.753 0.987 98.0% 4.0% 4.452
4.5% 2.749 3.588 4.390 5.158 53.0% 1.360 1.542 1.662 1.740 0.992 97.5% 4.5% 4.390
5.0% 2.723 3.546 4.329 5.076 53.5% 1.352 1.532 1.650 1.726 0.996 97.0% 5.0% 4.329
5.5% 2.698 3.505 4.270 4.996 54.0% 1.345 1.523 1.638 1.713 1.001 96.5% 5.5% 4.270
6.0% 2.673 3.465 4.212 4.917 54.5% 1.337 1.513 1.626 1.700 1.006 96.0% 6.0% 4.212
6.5% 2.648 3.426 4.156 4.841 55.0% 1.330 1.503 1.615 1.687 1.010 95.5% 6.5% 4.156
7.0% 2.624 3.387 4.100 4.767 55.5% 1.323 1.494 1.604 1.674 1.015 95.0% 7.0% 4.100
7.5% 2.601 3.349 4.046 4.694 56.0% 1.315 1.484 1.592 1.662 1.020 94.5% 7.5% 4.046
8.0% 2.577 3.312 3.993 4.623 56.5% 1.308 1.475 1.581 1.649 1.025 94.0% 8.0% 3.993
8.5% 2.554 3.276 3.941 4.554 57.0% 1.301 1.466 1.570 1.637 1.030 93.5% 8.5% 3.941
9.0% 2.531 3.240 3.890 4.486 57.5% 1.294 1.457 1.560 1.625 1.035 93.0% 9.0% 3.890
9.5% 2.509 3.204 3.840 4.420 58.0% 1.287 1.447 1.549 1.613 1.040 92.5% 9.5% 3.840
10.0% 2.487 3.170 3.791 4.355 58.5% 1.280 1.439 1.539 1.602 1.045 92.0% 10.0% 3.791
10.5% 2.465 3.136 3.743 4.292 59.0% 1.273 1.430 1.528 1.590 1.050 91.5% 10.5% 3.743
11.0% 2.444 3.102 3.696 4.231 59.5% 1.266 1.421 1.518 1.579 1.056 91.0% 11.0% 3.696
11.5% 2.423 3.070 3.650 4.170 60.0% 1.260 1.412 1.508 1.567 1.061 90.5% 11.5% 3.650
12.0% 2.402 3.037 3.605 4.111 60.5% 1.253 1.404 1.498 1.556 1.066 90.0% 12.0% 3.605
12.5% 2.381 3.006 3.561 4.054 61.0% 1.247 1.395 1.488 1.545 1.072 89.5% 12.5% 3.561
13.0% 2.361 2.974 3.517 3.998 61.5% 1.240 1.387 1.478 1.534 1.077 89.0% 13.0% 3.517
13.5% 2.341 2.944 3.475 3.943 62.0% 1.234 1.379 1.468 1.524 1.082 88.5% 13.5% 3.475
14.0% 2.322 2.914 3.433 3.889 62.5% 1.227 1.371 1.459 1.513 1.088 88.0% 14.0% 3.433
14.5% 2.302 2.884 3.392 3.836 63.0% 1.221 1.362 1.449 1.503 1.094 87.5% 14.5% 3.392
15.0% 2.283 2.855 3.352 3.784 63.5% 1.214 1.354 1.440 1.492 1.099 87.0% 15.0% 3.352
15.5% 2.264 2.826 3.313 3.734 64.0% 1.208 1.347 1.431 1.482 1.105 86.5% 15.5% 3.313
16.0% 2.246 2.798 3.274 3.685 64.5% 1.202 1.339 1.422 1.472 1.111 86.0% 16.0% 3.274
16.5% 2.228 2.770 3.236 3.636 65.0% 1.196 1.331 1.413 1.462 1.116 85.5% 16.5% 3.236
17.0% 2.210 2.743 3.199 3.589 65.5% 1.190 1.323 1.404 1.452 1.122 85.0% 17.0% 3.199
17.5% 2.192 2.716 3.163 3.543 66.0% 1.184 1.316 1.395 1.443 1.128 84.5% 17.5% 3.163
18.0% 2.174 2.690 3.127 3.498 66.5% 1.178 1.308 1.386 1.433 1.134 84.0% 18.0% 3.127
18.5% 2.157 2.664 3.092 3.453 67.0% 1.172 1.301 1.378 1.424 1.140 83.5% 18.5% 3.092
19.0% 2.140 2.639 3.058 3.410 67.5% 1.166 1.293 1.369 1.414 1.146 83.0% 19.0% 3.058
19.5% 2.123 2.613 3.024 3.367 68.0% 1.160 1.286 1.361 1.405 1.152 82.5% 19.5% 3.024
20.0% 2.106 2.589 2.991 3.326 68.5% 1.155 1.279 1.352 1.396 1.158 82.0% 20.0% 2.991
20.5% 2.090 2.564 2.958 3.285 69.0% 1.149 1.272 1.344 1.387 1.165 81.5% 20.5% 2.958
21.0% 2.074 2.540 2.926 3.245 69.5% 1.143 1.265 1.336 1.378 1.171 81.0% 21.0% 2.926
21.5% 2.058 2.517 2.895 3.205 70.0% 1.138 1.258 1.328 1.369 1.177 80.5% 21.5% 2.895
22.0% 2.042 2.494 2.864 3.167 70.5% 1.132 1.251 1.320 1.361 1.184 80.0% 22.0% 2.864
22.5% 2.027 2.471 2.833 3.129 71.0% 1.127 1.244 1.312 1.352 1.190 79.5% 22.5% 2.833
23.0% 2.011 2.448 2.803 3.092 71.5% 1.121 1.237 1.304 1.344 1.197 79.0% 23.0% 2.803
23.5% 1.996 2.426 2.774 3.056 72.0% 1.116 1.230 1.297 1.335 1.204 78.5% 23.5% 2.774
24.0% 1.981 2.404 2.745 3.020 72.5% 1.111 1.224 1.289 1.327 1.210 78.0% 24.0% 2.745
24.5% 1.967 2.383 2.717 2.986 73.0% 1.105 1.217 1.281 1.319 1.217 77.5% 24.5% 2.717
25.0% 1.952 2.362 2.689 2.951 73.5% 1.100 1.210 1.274 1.311 1.224 77.0% 25.0% 2.689
25.5% 1.938 2.341 2.662 2.918 74.0% 1.095 1.204 1.267 1.303 1.231 76.5% 25.5% 2.662
26.0% 1.923 2.320 2.635 2.885 74.5% 1.090 1.198 1.259 1.295 1.238 76.0% 26.0% 2.635
26.5% 1.909 2.300 2.609 2.853 75.0% 1.085 1.191 1.252 1.287 1.245 75.5% 26.5% 2.609
27.0% 1.896 2.280 2.583 2.821 75.5% 1.079 1.185 1.245 1.279 1.252 75.0% 27.0% 2.583
27.5% 1.882 2.260 2.557 2.790 76.0% 1.074 1.179 1.238 1.272 1.259 74.5% 27.5% 2.557
28.0% 1.868 2.241 2.532 2.759 76.5% 1.069 1.172 1.231 1.264 1.267 74.0% 28.0% 2.532
28.5% 1.855 2.222 2.507 2.729 77.0% 1.064 1.166 1.224 1.256 1.274 73.5% 28.5% 2.507
29.0% 1.842 2.203 2.483 2.700 77.5% 1.060 1.160 1.217 1.249 1.281 73.0% 29.0% 2.483
29.5% 1.829 2.185 2.459 2.671 78.0% 1.055 1.154 1.210 1.242 1.289 72.5% 29.5% 2.459
30.0% 1.816 2.166 2.436 2.643 78.5% 1.050 1.148 1.204 1.235 1.297 72.0% 30.0% 2.436
30.5% 1.803 2.148 2.412 2.615 79.0% 1.045 1.143 1.197 1.227 1.304 71.5% 30.5% 2.412
31.0% 1.791 2.130 2.390 2.588 79.5% 1.040 1.137 1.190 1.220 1.312 71.0% 31.0% 2.390
31.5% 1.779 2.113 2.367 2.561 80.0% 1.036 1.131 1.184 1.213 1.320 70.5% 31.5% 2.367
32.0% 1.766 2.096 2.345 2.534 80.5% 1.031 1.125 1.177 1.206 1.328 70.0% 32.0% 2.345
32.5% 1.754 2.079 2.324 2.508 81.0% 1.026 1.120 1.171 1.199 1.336 69.5% 32.5% 2.324
33.0% 1.742 2.062 2.302 2.483 81.5% 1.022 1.114 1.165 1.193 1.344 69.0% 33.0% 2.302
33.5% 1.730 2.045 2.281 2.458 82.0% 1.017 1.108 1.158 1.186 1.352 68.5% 33.5% 2.281
34.0% 1.719 2.029 2.260 2.433 82.5% 1.013 1.103 1.152 1.179 1.361 68.0% 34.0% 2.260
34.5% 1.707 2.013 2.240 2.409 83.0% 1.008 1.097 1.146 1.173 1.369 67.5% 34.5% 2.240
35.0% 1.696 1.997 2.220 2.385 83.5% 1.004 1.092 1.140 1.166 1.378 67.0% 35.0% 2.220
35.5% 1.685 1.981 2.200 2.362 84.0% 0.999 1.087 1.134 1.160 1.386 66.5% 35.5% 2.200
36.0% 1.673 1.966 2.181 2.339 84.5% 0.995 1.081 1.128 1.153 1.395 66.0% 36.0% 2.181
36.5% 1.662 1.951 2.162 2.316 85.0% 0.991 1.076 1.122 1.147 1.404 65.5% 36.5% 2.162
37.0% 1.652 1.935 2.143 2.294 85.5% 0.986 1.071 1.116 1.141 1.413 65.0% 37.0% 2.143
37.5% 1.641 1.921 2.124 2.272 86.0% 0.982 1.066 1.111 1.135 1.422 64.5% 37.5% 2.124
38.0% 1.630 1.906 2.106 2.251 86.5% 0.978 1.061 1.105 1.129 1.431 64.0% 38.0% 2.106
38.5% 1.620 1.892 2.088 2.229 87.0% 0.974 1.055 1.099 1.123 1.440 63.5% 38.5% 2.088
39.0% 1.609 1.877 2.070 2.209 87.5% 0.969 1.050 1.094 1.117 1.449 63.0% 39.0% 2.070
39.5% 1.599 1.863 2.052 2.188 88.0% 0.965 1.045 1.088 1.111 1.459 62.5% 39.5% 2.052
40.0% 1.589 1.849 2.035 2.168 88.5% 0.961 1.040 1.082 1.105 1.468 62.0% 40.0% 2.035
40.5% 1.579 1.836 2.018 2.148 89.0% 0.957 1.036 1.077 1.099 1.478 61.5% 40.5% 2.018
41.0% 1.569 1.822 2.001 2.129 89.5% 0.953 1.031 1.072 1.093 1.488 61.0% 41.0% 2.001
41.5% 1.559 1.809 1.985 2.109 90.0% 0.949 1.026 1.066 1.087 1.498 60.5% 41.5% 1.985
42.0% 1.549 1.795 1.969 2.091 90.5% 0.945 1.021 1.061 1.082 1.508 60.0% 42.0% 1.969
42.5% 1.540 1.782 1.953 2.072 91.0% 0.941 1.016 1.056 1.076 1.518 59.5% 42.5% 1.953
43.0% 1.530 1.769 1.937 2.054 91.5% 0.937 1.012 1.050 1.071 1.528 59.0% 43.0% 1.937
43.5% 1.521 1.757 1.921 2.036 92.0% 0.933 1.007 1.045 1.065 1.539 58.5% 43.5% 1.921
44.0% 1.512 1.744 1.906 2.018 92.5% 0.930 1.002 1.040 1.060 1.549 58.0% 44.0% 1.906
44.5% 1.502 1.732 1.890 2.000 93.0% 0.926 0.998 1.035 1.054 1.560 57.5% 44.5% 1.890
45.0% 1.493 1.720 1.876 1.983 93.5% 0.922 0.993 1.030 1.049 1.570 57.0% 45.0% 1.876
45.5% 1.484 1.707 1.861 1.966 94.0% 0.918 0.989 1.025 1.044 1.581 56.5% 45.5% 1.861
46.0% 1.475 1.695 1.846 1.949 94.5% 0.914 0.984 1.020 1.039 1.592 56.0% 46.0% 1.846
46.5% 1.467 1.684 1.832 1.933 95.0% 0.911 0.980 1.015 1.033 1.604 55.5% 46.5% 1.832
47.0% 1.458 1.672 1.818 1.917 95.5% 0.907 0.975 1.010 1.028 1.615 55.0% 47.0% 1.818
47.5% 1.449 1.660 1.804 1.901 96.0% 0.903 0.971 1.006 1.023 1.626 54.5% 47.5% 1.804
48.0% 1.441 1.649 1.790 1.885 96.5% 0.900 0.967 1.001 1.018 1.638 54.0% 48.0% 1.790
48.5% 1.432 1.638 1.776 1.870 97.0% 0.896 0.962 0.996 1.013 1.650 53.5% 48.5% 1.776
49.0% 1.424 1.627 1.763 1.854 97.5% 0.893 0.958 0.992 1.008 1.662 53.0% 49.0% 1.763
49.5% 1.416 1.616 1.750 1.839 98.0% 0.889 0.954 0.987 1.003 1.674 52.5% 49.5% 1.750
50.0% 1.407 1.605 1.737 1.824 98.5% 0.885 0.950 0.982 0.999 1.686 52.0% 50.0% 1.737
99.0% 0.882 0.946 0.978 0.994 1.698 51.5% 50.5% 1.724
99.5% 0.878 0.942 0.973 0.989 1.711 51.0% 51.0% 1.711
100.0% 0.875 0.938 0.969 0.984 1.724 50.5% 51.5% 1.698
1.737 50.0% 52.0% 1.686
If off the chart use 100% 1.750 49.5% 52.5% 1.674
 Page 18

Present Value of Annuity $1.00 in Arrears

5 Periods
Interest Periods Interest Periods
Interest Interest
Rate 3 4 5 6 Rate 3 4 5 6 Factor Rate Rate Factor
1.763 49.0% 53.0% 1.662
1.776 48.5% 53.5% 1.650
1.790 48.0% 54.0% 1.638
1.804 47.5% 54.5% 1.626
1.818 47.0% 55.0% 1.615
1.832 46.5% 55.5% 1.604
1.846 46.0% 56.0% 1.592
1.861 45.5% 56.5% 1.581
1.876 45.0% 57.0% 1.570
1.890 44.5% 57.5% 1.560
1.906 44.0% 58.0% 1.549
1.921 43.5% 58.5% 1.539
1.937 43.0% 59.0% 1.528
1.953 42.5% 59.5% 1.518
1.969 42.0% 60.0% 1.508
1.985 41.5% 60.5% 1.498
2.001 41.0% 61.0% 1.488
2.018 40.5% 61.5% 1.478
2.035 40.0% 62.0% 1.468
2.052 39.5% 62.5% 1.459
2.070 39.0% 63.0% 1.449
2.088 38.5% 63.5% 1.440
2.106 38.0% 64.0% 1.431
2.124 37.5% 64.5% 1.422
2.143 37.0% 65.0% 1.413
2.162 36.5% 65.5% 1.404
2.181 36.0% 66.0% 1.395
2.200 35.5% 66.5% 1.386
2.220 35.0% 67.0% 1.378
2.240 34.5% 67.5% 1.369
2.260 34.0% 68.0% 1.361
2.281 33.5% 68.5% 1.352
2.302 33.0% 69.0% 1.344
2.324 32.5% 69.5% 1.336
2.345 32.0% 70.0% 1.328
2.367 31.5% 70.5% 1.320
2.390 31.0% 71.0% 1.312
2.412 30.5% 71.5% 1.304
2.436 30.0% 72.0% 1.297
2.459 29.5% 72.5% 1.289
2.483 29.0% 73.0% 1.281
2.507 28.5% 73.5% 1.274
2.532 28.0% 74.0% 1.267
2.557 27.5% 74.5% 1.259
2.583 27.0% 75.0% 1.252
2.609 26.5% 75.5% 1.245
2.635 26.0% 76.0% 1.238
2.662 25.5% 76.5% 1.231
2.689 25.0% 77.0% 1.224
2.717 24.5% 77.5% 1.217
2.745 24.0% 78.0% 1.210
2.774 23.5% 78.5% 1.204
2.803 23.0% 79.0% 1.197
2.833 22.5% 79.5% 1.190
2.864 22.0% 80.0% 1.184
2.895 21.5% 80.5% 1.177
2.926 21.0% 81.0% 1.171
2.958 20.5% 81.5% 1.165
2.991 20.0% 82.0% 1.158
3.024 19.5% 82.5% 1.152
3.058 19.0% 83.0% 1.146
3.092 18.5% 83.5% 1.140
3.127 18.0% 84.0% 1.134
3.163 17.5% 84.5% 1.128
3.199 17.0% 85.0% 1.122
3.236 16.5% 85.5% 1.116
3.274 16.0% 86.0% 1.111
3.313 15.5% 86.5% 1.105
3.352 15.0% 87.0% 1.099
3.392 14.5% 87.5% 1.094
3.433 14.0% 88.0% 1.088
3.475 13.5% 88.5% 1.082
3.517 13.0% 89.0% 1.077
3.561 12.5% 89.5% 1.072
3.605 12.0% 90.0% 1.066
3.650 11.5% 90.5% 1.061
3.696 11.0% 91.0% 1.056
3.743 10.5% 91.5% 1.050
3.791 10.0% 92.0% 1.045
3.840 9.5% 92.5% 1.040
3.890 9.0% 93.0% 1.035
3.941 8.5% 93.5% 1.030
3.993 8.0% 94.0% 1.025
4.046 7.5% 94.5% 1.020
4.100 7.0% 95.0% 1.015
4.156 6.5% 95.5% 1.010
4.212 6.0% 96.0% 1.006
4.270 5.5% 96.5% 1.001
4.329 5.0% 97.0% 0.996
4.390 4.5% 97.5% 0.992
4.452 4.0% 98.0% 0.987
4.515 3.5% 98.5% 0.982
4.580 3.0% 99.0% 0.978
4.646 2.5% 99.5% 0.973
4.713 2.0% 100.0% 0.969
4.783 1.5%
4.853 1.0%
4.926 0.5%
4.871 0.0%