Using the results from Question 1, compute the incremental annual revenues (cash inflows) if McCoy invests in the larger truck and trailer. Use the model in case Exhibit 1 to compute incremental annual expenses (cash outflows) if McCoy invests in the larger truck and trailer. Determine incremental annual cash flows for the larger truck and trailer
Results Question 1
Case 1: Current Trucks/ Trailers |
|
number of calendar days needed to complete a one-acre job |
Since, the number of calendar days cannot be decimal and is higher than 6, we will have to round off the days to 7 and not 6. So, days required to complete the job is 7. |
maximum number of jobs McCoy could accept per year |
Number of Jobs/ year = 365/ 6.103 = 59.8. We round it off to 59 as the number of jobs cannot be higher than the actual value. |
Case 2: Larger Trucks/ Trailers |
|
number of calendar days needed to complete a one-acre job | y = 9.66 days, so we consider the number of calendar days as 10. |
maximum number of jobs McCoy could accept per year | Number of Jobs/ year = 365/ 9.66 37.78 or 37 jobs/ year |
Background:
Using the results from Question 1, compute the incremental annual revenues (cash inflows) if McCo...
1. Compute the number of calendar days needed to complete a
one-acre job using the current truck/trailer combination and the
larger truck/trailer combination. Use this result to calculate the
maximum number of jobs McCoy could accept per year using each
truck/trailer combination
Background:
Exhibit 1 ACTUAL REVENUES AND COSTS FOR THE RESORT LAND-CLEARING JOB (in U.S. dollars) Per day Project Calendar days needed to complete the project Revenues Revenue per calendar day $375.00 Total revenues $2,625.00 Variable costs Transportation costs...
Analyze the case the answer the questions:
introduction of the case
assess the financial reporting landscape considering the user
needs, constraints, and business environment,
identify the issues,
analyze the issues (qualitatively and quantitatively), and
provide a recommendation and conclusion.
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