Fin 531 Week 3 Mini Case Solution

Agro-Chem, Inc. is a regional producer of agricultural chemicals based in Houston Texas that needs help making a lease versus purchase decision. By understanding the material presented, we will be able to come to a decision. However, after reviewing the information presented, there are a few problems that need to be investigated before finalizing our recommendation. Agro-Chem, Inc. chose to go with the financial manager’s idea of using a discount rate of 14% (average risk) to figure out the present value costs of leasing and purchasing even though the assistant treasure suggested a 12% (low risk) discount rate. Agro-Chem, Inc. brought in the company’s CPA to help settle the debate

1.For which of the following products would job order costing be least likely to be used?

Second, the manufacturing order costs for non-stocked items was calculated by dividing total manufacturing order costs for non-stocked items by the number of orders for non-stocked products. Non-stocked products have additional costs associated with processing orders that went above and beyond the costs associated with a stocked product. The third step involved determining what the S"A allocation factor would be for calculating the S"A volume related costs. This allocation factor would then be applied to manufacturing COGS. The fourth and final step involved the calculation of the operating profit based on backing out volume related costs from sales revenues followed by deducting S"A and manufacturing order costs from the resulting gross margin to arrive at a operating profit.

4. What inventory method is used to value inventories? Does this method reflect current cost at year-end?

If the Lender receives money as a result of making such a claim as part of the distribution of the Borrower’s estate or any other reason, it may, subject to the requirement of any law, set that money aside. Subject to the requirement of any law, the Lender need not apply that money to pay the guaranteed debt until it has received sufficient to discharge the guaranteed debt and until that time your liability to pay the whole of the guaranteed debt will not be affected.

n. WACC has market interest rates and market risk aversion, firms debt/equity mix and firm’s business risk which all go to cost of debt and cost of equity which both areas end up at the value.

Your cousin Cathy runs a part-time business out of her apartment. She buys and sells collectibles such as antique prints, baseball cards, and cartoon cells and has recently discovered the Web with its many auction sites. She has begun buying and selling on the Web by bidding on collectibles at lesser-known sites and selling them at a profit at more well-known sites. She downloads and uploads lots of graphics (pictures of the items she’s buying and selling). She is getting frustrated with the slow Internet access she has with her 56-Kbps dial-up modem and asks you for advice. DSL is available at a cost of $60 per month for 1.5 Mbps down and 384 Kbps up. Cable modem service is available for a cost of $50

What is the implied average collection period for the end of March? For the end of June?

This paper analyzes the reasons sales manager, Jim Reed, was unsuccessful in suitably motivating one of his top employees, Fred Maiorino, to remain a top employee at Schering-Plough. It will scrutinize Reed's role in contributing to Fred's sense of psychological contract breach—and eventually its violation. The paper will also look at the mishandling of employee appraisals and employee goals and discuss Reed's counterproductive leadership style, ending in the eventual de-motivation of Fred. This paper will also recommend different ways Reed could have gone about motivating and analyzing Fred when it came to employee reviews and performance, how goals were set and how Reed how have approached the situation in a different manner and how Reed

Finally, selecting between both alternatives. Alternative 2 is the one I would choose, because it exhibits the values of confidentiality, integrity, objectivity, and responsibility to his client. Those are very important rules to respect in accounting. William should find the best way of explaining the situation to his friend to save their friendship. He can tell Bill that telling him about Jack’s plan might cause him (Williams) serious problem in his professional life because he will be losing his confidentiality. Also, with this alternative, Williams will save his engagement with the Oneway

dividend will be $1.00, and that it will grow at 4% annually. James and Bret agree

A defective radio shall be replaced with another immediately. If there is no replacement radio, the security personnel shall use a landline phone or a mobile phone.

1. In the text, “Flat has left the U. S. automobile market for more than 30 years. According to the text the organization was having mechanical issues with its vehicles which led to customers complaint and poor support” (pg. 502). My suggestion would be for the company to restructure and redesign its operations that is spread across the United States. Also their plant in Mexico should have a way to regulate and ensures quality measures across the board of the organization. I believe this may help the organization to expand its potential consumer base that is aimed toward those individuals that used to purchase the company vehicle in the 1980s.

No. of employees * (0.10 * Selling Price * Volume of sales) = $100000 + No. of employees * ($25000 + 0.05 * Selling Price * Volume of Sales)

Consider a product line with 50% gross margins (after subtracting volume-related expenses from prices). The cost for handling an individual customer order is SEK 750, and the extra cost to handle a production order for a non-stocked item is SEK 2,250.