[jgootz421]

Not sure how to ask my questions without typing a novel but her goes….

Back to back questions in becker (F4, Fixed assets questions 23 and 24). They both give different payments made throughout the year and interest rates on loans etc.

the answer for the first questions computes average expenditures like this;

200,000 4/12 (Jan-april) $66,667

800,000 7/12 (May-nov) $466,667

1,100,000 1/12 (Dec) $91,666

Average Expenditures = $625,000

The very next question is basically the same questions but the avg expen are computed;

Jan 1 purchase $120,000 12/12 $120,000

Sept 1: progress payment $150,000 4/12 $50,000

Avg Accum expend. = $170,000

So basically in the first question the payment is only averaged based on number of months until the next payment, where as in the second it is based off how many months remaining in the year. I’m sure unless you are familiar with the actual problems this is probably impossible to understand, but if anyone out there wants to look at the actual questions and offer an explanation it would be greatly appreciated!

Thanks!

REG - 79 - 8/9/15
FAR - 79 - 11/25/15
BEC - 80 - 1/4/16
AUD - 80 - 2/13/16