Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.36 : (a) (L = A / F) = (G = A / B) (H = B / C) (I = C / D) (J = D / E) (K = E / F) = (3 / 4) (1.04) (0.27) (0.66) (2.66) = 0.37. (b) When D = $1500 : C / D = 0.27, C = 0.27 D = 0.27 ($1500) = $405. B / C = 1.04, B = 1.04 C = 1.04 ($405) = $421.20. A / B = 3 / 4, A = 3 B / 4 = 3 ($421.20) / 4 = $315.90. D / E = 0.66, E = D / 0.66 = ($1500) / 0.66 = $2272.73. E / F = 2.66, F = E / 2.66 = ($2272.73) / 2.66 = $854.41. Finally : A = $315.90, B = $421.20, C = $405, E = $2272.73, F = $854.41. (c) From answer (a), L = 0.37. From answer (b), A = $315.90, F = $854.41. Verification : L = A / F = ($315.90 / $854.41) = 0.37. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.

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