Phelps Toy Company Accounting Case Study Assignment

### Question Description

Assignment requirements: Please answer all questions. You may use Excel and/or Word to complete the assignment. SHOW ALL WORK! Points will be deducted for not providing detailed calculations. When fulfilling a requirement that asks for a recommendation, please write in complete sentences.

Assignment Tips: Requirement #1 requires several systematic steps to arrive at the answer:

1. Determine the expected value of the first year's sales. You will need to consider the assumption, sales, and the probabilities.
2. Project sales for the next 5 years. Year 2 is calculated using the answer from (1).
3. Then determine operating expenses and EBDT for 6 years. Note: operating expenses are 70% of sales from (2).
4. Determine the annual depreciation for six years using the five-year MACRS table on page 398 of your text.
5. Combine the data from (3) and (4) into a table like Table 12-14 on page 400.

### Unformatted Attachment Preview

Purchase answer to see full attachment

Hi, ;). here is your assignment :). it was done through excel :). Let me know if you need more help okay :). Goodluck ;)

1. Use the basic data in the case to put together an
analysis similar to Table 12-14 in the text. To determine
earnings before depreciation and taxes (EBDT), subtract
projected operating expenses from projected sales.
Use a tax rate of 34 percent.
Phelps Toy Company
First, let us determine the expected value for the first year
Supposed
Pessimist
Normal
Optimistic
Highly Optimistic

Year 2
Year 3
Year 4
Year 5
Year 6

Sales
\$1,100,000
\$2,000,000
\$3,750,000
\$4,500,000

Costs Effectiveness
0.25
0.4
0.2
0.15
Total

After Sales Projected for the next 5 years
\$2,500,000
\$3,000,000
\$3,600,000
\$4,320,000
\$4,752,000

1.20%
1.20%
1.20%
1.2...

Super_Teach12 (2461)
University of Virginia
Review

Anonymous
Top quality work from this tutor! I’ll be back!

Anonymous
Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Anonymous
Thank you! Reasonably priced given the quality

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors