Case Project W2023

Project s report ed on the balance sheet Estimat ed Sales (in thousands) Costs incurred to date (in thousands) Cash required to complete (in thousands) Production and sale date(fiscal year) A1150 $ 13,500 $ 5,480 $ 1,650 2026 B3400 $ 7,900 $ 3,150 $ 1,080 2027 C1000 $ 6,130 $ 2,000 $ 120 2023 D510 $ 3,200 $ 1,300 $ 1,950 2025 G620 $ 8,160 $ 3,450 $ 840 2025 T110 $ 19,040 $ 7,350 $ 1,100 2022 T990 $ 15,100 $ 6,000 $ 1,350 2023 V300 $ 4,386 $ 1,100 $ 1,200 2024 X100 $ 8,630 $ 3,800 $ 140 2022 ICS is in talks with various firms to sell project A1150 and B3400. ICS wants to dispose of these projects as it currently does not have the necessary resources to develop these projects further and would like to concentrate on the more profitable projects. All developer salaries and contract payments are capitalized as part of development costs. Investments In November 2022, ICS purchased some assets off a company that was closing its operations. Berta could not resist the great purchase price of $800,000 for a complete set of office equipment, inventory of computer parts that ICS could also use in its manufacturing process and a patent. However, Jay admits that it was really the patent that he was most interested in. Jay estimates that, if purchased separately, the equipment alone would cost between $500,000-$600,000 and the one-month’s worth of inventory between $200,000-$300,000. In fiscal 2019, MPS acquired 100,000 of common shares of Music Power Shop Inc (MPS), a private company. MPS was not doing well and Jay decided to invest $1,000,000 of ICS’s funds into the business. MPS is not widely held and ICS’ investment constituted 17%. The business is