Program Financial Review Resource Analysis Assignment Instructions

Capital Budgeting with Taxes (Non-MACRS Depreciation); Sensitivity Analysis GravinaCompany is planning to spend $6,000 for a machine that it will depreciate on a straight-line basisover 10 years with no salvage value. The machine will generate additional cash revenues of $1,200 ayear. Gravina will incur no additional costs except for depreciation. Its income tax rate is 35%. Thepresent value annuity factor for 15%, 10 years (from Appendix C, Table 2) is 5.019.Required1. What is the payback period of the proposed investment (in years, and rounded to 1 decimal place) underthe assumption that the cash inflows occur evenly throughout the year?2. What is the accounting (book) rate of return (ARR) based on the initial investment outlay? Round youranswer to 1 decimal place (e.g., 13.571% = 13.6%).

Retailer Budget D. Tomlinson Retail seeks your assistance in developing cash and other budgetinformation for May, June, and July. The store expects to have the following balances at the end ofApril:Cash $ 5,500Accounts receivable 437,000Inventories 309,400Accounts payable 133,055The firm follows these guidelines in preparing its budgets:∙ Sales. All sales are on credit with terms of 3/10, n/30. Tomlinson bills customers on the last day ofeach month. The firm books receivables at gross amounts and collects 60% of the billings withinthe discount period, 25% by the end of the month, and 9% by the end of the second month. Thefirm’s experience suggests that 6% is likely to be uncollectible and is written off at the end of thethird month.∙ Purchases and expenses. All purchases and expenses are on open account. The firm pays its payables over a 2-month period with 54% paid in the month of purchase. Each month’s units of endinginventory should equal 130% of the next month’s cost of sales. The…

D1. Account  What are the five available reductions from gross taxable income to calculate net taxable income?

Hh1. Account

After the takeover, HT Bank has various subsidiaries and intends to restructure the company to improve the performance of the companies. It is an important decision in accomplishing corporate long-term objectives. The management of HT Bank decides to pursue a spinoff in order to achieve such an objective. HT Bank needs to restructure the company especially the subsidiaries after the mergers. a) Discuss critically the reasons why HT Bank decide to use spinoff to restructure the company. b) Explain the limitation of using spinoff in this restructuring.

Sab AV Aa Font A A A T Investigate D Paragraph Exercise 2 Appended below is an inventory record of a manufacturing company displaying purchase of quantity raw materials for the year 2022 and from 2023. FS Required: Calculate the estimated forecast for from July 2023 till December 2023. ww Shapes Arrange Quick V Styles Drawing Feb March January till June April May June July August September October Demand Forecast Year 2023 Month Jan November December V FS Editing y 1,700 1750 2110 1225 3230 4512 Dictate Sensitivity V Voice Sensitivity Year 2022 Raw Materials Purchased Month Jan Feb March April May June July August September October November December =Notes 25°C gg UU Add-ins Add-ins 60 Designer UNITAR Raw Materials Purchased 1230 1880 1100 2580 3820 4580 3330 2530 5120 4830 5230 5110 ENG 10:1 21/1

16. As a marketing manager for one of the world's largest automakers, you are responsible for the advertising campaign for a new energy-efficient sports utility vehicle. Your support team has prepared the following table, which summarizes the (year-end) profitability, estimated number of vehicles sold, and average estimated selling price for alternative levels of advertising. The accounting department projects that the best alternative use for the funds used in the advertising campaign is an investment returning 9 percent. In light of the staggering cost of advertising (which accounts for the lower projected profits in years 1 and 2 for the high and moderate advertising intensities), the team leader recommends a low advertising intensity in order to maximize the value of the firm. Do you agree? Explain. (Hint: the value of the firm is directly related to the present value of future profits) Profitability by Advertising Intensity Profits (in millions) 1 Year 2 Year 3 Year Advertising…

Please answer all questions using exact terminlogy... Neptune Company has developed a small inflatable toy that it is anxious to introduce to its customers. The company’s Marketing Department estimates that demand for the new toy will range between 20,000 units and 30,000 units per month. The new toy will sell for $9.00 per unit. Enough capacity exists in the company’s plant to produce 25,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $5.00 , and incremental fixed expenses associated with the toy would total $34,000 per month.   Neptune has also identified an outside supplier who could produce the toy for a price of $4.00 per unit plus a fixed fee of $67,000 per month for any production volume up to 25,000 units. For a production volume between 25,001 and 55,000 units the fixed fee would increase to a total of $134,000 per month.   Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside…

D&R A3 3 - 2 Question 3. FRA Pricing, Valuation, Payoff, and Hedging Today is June 1. Sustainable Corporation has an obligation of $25 million coming due on August 1. The company is planning to borrow this amount on August 1 to fulfill its obligation, and plans to pay back the loan on December 1. The company’s borrowing rate is LIBOR + 125 basis points. The company’s bank presents it with the following LIBOR term structure: # days LIBOR 30 0.90% 60 1.00% 90 1.05% 120 1.10% 150 1.15% 180 1.18% 210 1.20% 240 1.21%   For the calculation of interest, the bank assumes 30 days in a month, and 360 days in a year. Ms. Devro, the VP Finance of Sustainable, is worried that LIBOR will increase between June and August, thus increasing the company’s borrowing cost. She advises that the company enters into a forward rate agreement (FRA) with its bank to hedge its interest rate risk. She has asked you, the treasurer of the company, to…

CB Winter Sports specializes in providing ski lessons to beginners. The company uses the allowance method to account for uncollectible accounts expense CB Winter Sports experienced the following four accounting events in Year 1: 1. Recognized $266,000 of revenue on account. 2. Collected $126,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $2,300, 4. Recognized uncollectible accounts expense, CB Winter Sports estimated that uncollectible accounts expense will be 3 percent of sales on account Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA) The first transaction is shown as an example. Note: Enter any decreases to account balances and cash…

Based on these tables, Can you calculate the Profit and Revenue and explain how you got these calculations. Also please explain how these tables are important when finding profit and revenue.

Which would result in a positive budget forecasting error? 1. Overlooking a source of investment income II. Not taking into account an expense paid once а year II. Switching to a less costly gym v. Underestimating annual car expenses V. Overestimating expected capital gains

Case H Pearson Air Conditioning & Service Managing A Firm’s  1. Evaluate the overall performance and financial structure of Pearson Air Conditioning & Service.,2. What are the strengths and weaknesses in this firm’s management of accounts receivable and inventory?,3. Should the firm reduce or expand the amount of its bank borrowing?,4. Evaluate Pearson’s management of accounts payable.,5. Calculate Pearson’s cash conversion period. Interpret your computation.,6. How could Pearson Air Conditioning & Service improve its working-capital situation? please solve only question no-3

Case H Pearson Air Conditioning & Service Managing A Firm’s  1. Evaluate the overall performance and financial structure of Pearson Air Conditioning & Service.,2. What are the strengths and weaknesses in this firm’s management of accounts receivable and inventory?,3. Should the firm reduce or expand the amount of its bank borrowing?,4. Evaluate Pearson’s management of accounts payable.,5. Calculate Pearson’s cash conversion period. Interpret your computation.,6. How could Pearson Air Conditioning & Service improve its working-capital situation?

1. You are starting a business selling ferrets. • You need a pen and supplies which will cost you $100. Also, each ferret costs $10 each. Fill the table for cost. You will sell the ferrets for $15 each. Fill the table for Money. Plot and graph both lines for Cost and Money Use the provided paper (looks like this), take a picture and submit. 400 Money ($) Cost 0. 10 10 200 20 20 30 30 40 40 50 50 10 20 30 40 50 Edit View Insert Format Tools Table 12pt v Paragraph v BIUA v 8888- Ferrets Bought 888- Ferrets sold Money ($)

3.4 part a b c

Pls help ASAP

GIANTS, a sole trader extracted the following trial balance from her books at the close of business on 31st December, 2016:  Dr Cr  GHȻ GHȻ  Purchases and sales 61,420 127,245  Inventory 1 January, 2016 7,940  Capital 1 January, 2016 25,200  Bank overdraft 2,490  Cash 140  Discounts 2,480 62  Returns 3,486 1,356  Carriage outwards 3,210  Rent and insurance 8,870  Allowance for doubtful debts 630  Fixtures and fittings 1,900  Van 5,600  Accounts receivable and trade payable 12,418 11,400  Drawings 21,400  Wages and salaries 39,200  General office expenses 319          168,383 168,383  Additional information:  (a) Inventory 31st December, 2016 GHȻ 6,805  (b) Wages and salaries accrued at 31st December, 2016 GHȻ 3,500; Office expenses GHȻ 16  (c) Rent prepaid 31st December, 2016 GHȻ 600  (d) Increase in allowance for doubtful debts by GHȻ 110 to GHȻ 740  (e) Provide for depreciation as follows: Fixtures and fittings GHȻ 190 and Van GHȻ 1,400 5    Required:  a) Prepare the income statement…

Budgeting for a Merchandising Firm Goldberg Company is a retail sporting goods store thatuses an accrual accounting system. Facts regarding its operations follow:∙ Sales are budgeted at $250,000 for December and $225,000 for January, terms 1/eom, n/60.∙ Collections are expected to be 50% in the month of sale and 48% in the month following the sale.Two percent of sales are expected to be uncollectible and recorded in an allowance account at theend of the month of sale. Bad debts expense is included as part of operating expenses.∙ Gross margin is 30% of gross sales.∙ All accounts receivable are from credit sales. Bad debts are written off against the allowanceaccount at the end of the month following the month of sale.∙ Goldberg desires to have 80% of the merchandise for the following month’s sales on hand at the endof each month. Payment for merchandise is made in the month following the month of purchase.∙ Other monthly operating expenses to be paid in cash total $25,000.∙ Annual…

Budgeting for a Merchandising Firm Goldberg Company is a retail sporting goods store thatuses an accrual accounting system. Facts regarding its operations follow:∙ Sales are budgeted at $250,000 for December and $225,000 for January, terms 1/eom, n/60.∙ Collections are expected to be 50% in the month of sale and 48% in the month following the sale.Two percent of sales are expected to be uncollectible and recorded in an allowance account at theend of the month of sale. Bad debts expense is included as part of operating expenses.∙ Gross margin is 30% of gross sales.∙ All accounts receivable are from credit sales. Bad debts are written off against the allowanceaccount at the end of the month following the month of sale.∙ Goldberg desires to have 80% of the merchandise for the following month’s sales on hand at the endof each month. Payment for merchandise is made in the month following the month of purchase.∙ Other monthly operating expenses to be paid in cash total $25,000.∙ Annual…

Budgeting for a Merchandising Firm Goldberg Company is a retail sporting goods store thatuses an accrual accounting system. Facts regarding its operations follow:∙ Sales are budgeted at $250,000 for December and $225,000 for January, terms 1/eom, n/60.∙ Collections are expected to be 50% in the month of sale and 48% in the month following the sale.Two percent of sales are expected to be uncollectible and recorded in an allowance account at theend of the month of sale. Bad debts expense is included as part of operating expenses.∙ Gross margin is 30% of gross sales.∙ All accounts receivable are from credit sales. Bad debts are written off against the allowanceaccount at the end of the month following the month of sale.∙ Goldberg desires to have 80% of the merchandise for the following month’s sales on hand at the endof each month. Payment for merchandise is made in the month following the month of purchase.∙ Other monthly operating expenses to be paid in cash total $25,000.∙ Annual…

9. Which investment is the most engaging, if the cost of money is 9%?a. Investment Cb. Investment Ac. Investment Bd. Any of the investmente. None of the AboveAs an operations manager of OPQ Furniture, you must make a decision about adding a line ofrustic furniture for physical distribution. In discussing the possibilities with your sales manager, you decidethat there will be definitely be a market and that your firm should enter the market. However, because ofrustic furniture has a different finish than your standard offering, you decide you need another processline. There is no doubt in your mind about the decision, and you are sure that you should have a secondprocess. But you do question how large to make it. A large process line is going to cost $400,000; a smallprocess line will cost $300,000. The question therefore is the demand for rustic furniture. After extensivediscussion, you determine that the best estimate you can make is that there is a two out of three chanceof profit…

54|David is looking to purchase an old church building. He hires an appraiser to help determine the market value of the property. Why would the appraiser most likely value the property using the cost approach? O A church is a specialty building that will most likely not have any comparable properties. It is also not an income producing property, so the best method would be the cost approach. O The income capitalization approach should be used rather than the cost approach. O A church building will have at least three comparable properties to use to help determine the market value. O The church building will most likely have income, which when a capitalization rate is applied will help determine the market value

3. The marketing manager of a large truck manufacturer was surprised to learn that the price list generated by his department had little relation to the price that were actually charged to customers. The company's finance department often change the prices to conform to profit goals before the prices reached the company's sales force. The salespeople often gave customers discount to raise their sales volume. The operations manager made price adjustments to accommodate delays in promised shipping times. a. Is this desirable or undesirable for the company? Defend your answer. b. What can be done about this situation?

Assume a company's Income Statement for Year 12 is as follows: Year 12 (in 000s) Income Statement Data Net Revenues from Footwear Sales $ 580,000 370,000 40,000 75,000 15,000 90,000 Cost of Pairs Sold Warehouse Expenses Marketing Expenses Administrative Expenses Operating Profit (Loss) Interest Income (Expense) Pre-tax Profit (Loss) Income Taxes Net Profit (Loss) (15,000) 75,000 22,500 $ 52,500 Based on the above income statement data and assuming the company has 20 million shares of common stock outstanding , the company's operating profit margin and EPS were Copyright O by Glo-Bus Software, Inc. Capying, distributing, ar 3rd party website posting isexpressly prohibited and constitutes copyright vialation. 15.52% and $4.50. O 9.05% and $3.75. 13.79% and $1.75. O 12.93% and $3.75. O 15.52% and $2.63.

What is the 7p’s of a new coffee shop that sell coffees and desserts.