Crane Company had $290,600 of net income in 2019 when the selling price per unit was $154, the variable costs per unit were $94, and the fixed costs were $573,400. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Crane Company is under pressure from stockholders to increase net income by $57,600 in 2020.

A. Compute the number of units sold in 2019

B. Compute the number of units that would have to be sold in 2020 to reach the stockholders' desired profit level.

C. Assume that Crane Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders' desired profit level?

Ivanhoe Company had $177,900 of net income in 2019 when the selling price per unit was $154, the variable costs per unit were $98, and the fixed costs were $572,500. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Ivanhoe Company is under pressure from stockholders to increase net income by $93,800 in 2020.

Compute the number of units sold in 2019.

Compute the number of units that would have to be sold in 2020 to reach the stockholders’ desired profit level.

Assume that Ivanhoe Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders’ desired profit level?

A prospective MBA student earns $50,000 per year in her current job and expects that amount to increase by 12% per year. She is considering leaving her job to attend business school for two years at a cost of $45,000 per year. She has been told that her starting salary after business school is likely to be $85,000 and that amount will increase by 15% per year. Consider a time horizon of 10 years, use a discount rate of 11%, and ignore all considerations not explicitly mentioned here. Assume all cash flows occur at the start of each year (i.e., immediate, one year from now, two years from now,..., nine years from now). Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school. What is the net present value of the more attractive choice?

1) A prospective MBA student earns $50,000 per year in her current job and expects that amount to increase by 9% per year. She is considering leaving her job to attend business school for two years at a cost of $50,000 per year. She has been told that her starting salary after business school is likely to be $105,000 and that amount will increase by 10% per year. Consider a time horizon of 10 years, use a discount rate of 10%, and ignore all considerations not explicitly mentioned here. Assume all cash flows occur at the start of each year (i.e., immediate, one year from now, two years from now,..., nine years from now). Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school. What is the net present value of the more attractive choice?

A prospective MBA student earns $60,000 per year in her current job and expects that amount to increase by 11% per year. She is considering leaving her job to attend business school for two years at a cost of $45,000 per year. She has been told that her starting salary after business school is likely to be $75,000 and that amount will increase by 18% per year. Consider a time horizon of 10 years, use a discount rate of 12%, and ignore all considerations not explicitly mentioned here. Assume all cash flows occur at the start of each year (i.e., immediate, one year from now, two years from now,..., nine years from now). Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school. What is the net present value of the more attractive choice?

On October 1, 2020, Mertag Company (a U.S.-based company) receives an order from a customer in Poland to deliver goods on January 31, 2021, for a price of 1,028,000 Polish zlotys (PLN). Mertag enters into a forward contract on October 1, 2020, to sell PLN 1,028,000 in four months (on January 31, 2021). U.S. dollar–Polish zloty exchange rates are as follows:

Mertag designates the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate, and, therefore, forward points are included in assessing hedge effectiveness. Mertag must close its books and prepare financial statements on December 31. Discounting to present value can be ignored.

1. Prepare journal entries for the foreign currency forward contract, foreign currency firm commitment, and export sale.
2. Determine the net benefit, if any, realized by Mertag from entering into the forward contract.

based on the ratios completed above)

1. What the Ratios Tell Us About the Company in General or its Financial Management?

2. How the Ratios Affect the Decision Whether to Grant Short-term Credit or Long-term Credit, or to Buy Shares in the Company

You are the audit senior responsible for the audit of Spectrum Ltd for the year ended 30 June 2018. During your initial planning meeting with Justin James, the chief financial officer (CFO), he informs you of the following changes in the company’s operations.

(a) To help achieve budgeted sales for the year, Spectrum is about to introduce bonuses for sales staff. The bonuses will be an increasing percentage of the gross sales made by each salesperson above certain monthly targets.

(b) Spectrum plans to close an inefficient factory in country Tasmania before the end of 2018. It is expected that the redeployment and disposal of the factory assets will not be completed until the end of

(c) the following year. However, Justin is confident that he will be able to determine reasonably accurate closure provisions.

(d) The chief executive officer (CEO), Geoff Alderton, has just returned from Italy, where he signed a contract to import a line of clothing that has become the latest fashion fad there. The company has not previously been engaged in the clothing industry.

Due to Justin’s workload, the company recently employed a treasurer, Alice Campbell. Justin is excited about the appointment, because in the three months since Alice has been with the company she has realized a small profit for the company through foreign exchange transactions in US dollars.

For each of the scenarios provided, outline how the information affects inherent risk.

1: Given the increase in population in the last 10 years, how do you explain the price decline in commodities?

2: Describe the various ways immigrants can legally enter into the United States.

3: What is President Trump’s healthcare proposal for the 2020 reelection? (6 bullet points) What could he apply from the Singapore healthcare system?

4: Define skill transferability. How does this apply to migrants entering into the United States?

5: Based on the documentary “Living on one dollar” Suppose that Anthony and Rosa came to spend some time in the US. Describe the situation and make a comparison of what they will find in the US as a low-income family vs. what they have in Guatemala?

The Federal Reserve on Tuesday, March 3, 2020 took the emergency step of cutting the benchmark U.S. interest rate by half a percentage point, an attempt to limit the economic and financial fallout from the coronavirus. Consider the FX market and the money market diagrams we learned within asset approach to exchange rate determination and answer the following questions. Let US be the home country and Euro Area be the foreign country. a) Following the Fed’s decision, explain which schedule(s) shift in the US money market and why. b) Following the Fed’s decision, explain which schedule(s) shift in the FX market and why. c) What happens to the equilibrium E$/€ exchange rate? Why?