For the year ending Dec. 31, 2018, MLH Corp. had EBITDA = $8 million, and Net Income = $4 million. At the time, MLH had debt of $4 million, excess cash of $10 million, and 2 million shares outstanding.

A. Suppose that Montastic Inc. (a comparable firm that is publicly traded) has a P/E ratio of 18. What total equity value and share price would you then estimate for MLH.

B. Suppose that Montastic Inc. (the comparable firm) has an Enterprise Value/EBITDA multiple of 9.25. What enterprise value and share price would you then estimate for MLH?

A German company expects to pay 5 million Australian Dollars (AUD in 3 months. a. Name 3 principal methods to do so b. How could the German company hedge its currency risk using futures contracts traded on the Chicago Mercantile Exchange (CME)? What contracts could the company enter into? How many would the company enter into? Buy or sell them?

The following information was reported by Gap, Inc. in its 2009 annual report.

(a) Determine the overall percentage decrease in Gap"s total assets from 2005 to 2009. What was the average decrease per year?

(b) Comment on the change in Gap"s liquidity. Does working capital or the current ratio appear to provide a better indication of Gap"s liquidity? What might explain the change in Gap"s liquidity during this period?

(c) Comment on the change in Gap"s solvency during this period.

(d) Comment on the change in Gap"s profitability during this period. How might this affect your prediction about Gap"s future profitability?

A company paid for a 12-month insurance policy on February 1, 2004 for $3,600 and debited the Prepaid Insurance account for the cost of the policy. Assuming no previous adjusting entries have been made, what adjusting entry should be made at March 31, 2004 for the interim financial statements to be properly stated?

Consumer Reports (January 2005) indicates that profit margins on extended warranties are much greater than on the purchase of most products. In this exercise we consider a major electronics retailer that wishes to increase the proportion of customers who buy extended warranties on digital cameras. Historically, 20 percent of digital camera customers have purchased the retailer’s extended warranty. To increase this percentage, the retailer has decided to offer a new warranty that is less expensive and more comprehensive. Suppose that three months after starting to offer the new warranty, a random sample of 527 customer sales invoices shows that 167 out of 527 digital camera customers purchased the new warranty. Find a 95 percent confidence interval for the proportion of all digital camera customers who have purchased the new warranty. Are we 95 percent confident that this proportion exceeds .20? (Round your answers to 3 decimal places.)

The 95 percent confidence interval is [   , ].

(Click to select)Yes or No , the entire interval (Click to select)is not or is above .20.

A company (the seller) provides software to customers for 8 years. In addition to the software, the company also provides the customer consulting services over the 8-year period. The total transaction price is $386,000. The company estimates the consulting services have a standalone value of $120,000 and the software license has a standalone value of $380,000. Assuming the performance obligations are separate, on the date the customer licensed the software, the company should record Unearned Service Revenue of $ . (If no Unearned Service Revenue should be recorded, then enter 0.)

need to check my answers

On November 1, 2017, the account balances of Hamm Equipment Repair were as follows.

During November, the following summary transactions were completed.

___________________________________________________________________

A.)Enter the November 1 balances in the ledger accounts.

B.)Journalize the November transactions.

c.)Post to the ledger accounts.

d.)Prepare a trial balance at November 30.

e.)Adjustment data consist of:

Journalize the adjusting entries.

Post the adjusting entries

f.)Prepare an adjusted trial balance.

Accounting ethics cases

You have recently been hired as the assistant controller for Stanton Temperton Corporation, which rents building space in major metropolitan areas. Customers are required to pay six months of rent in advance. At the end of 2018, the company's president, Jim Temperton, notices that net income has fallen compared to last year. In 2017, the company reported before-tax profit of $330,000, but in 2018 the before-tax profit is only $280,000. This concerns Jim for two reasons. First, his year-end bonus is tied directly to before-tax profits. Second, shareholders may see a decline in profitability as a weakness in the company and begin to sell their stock. With the sell-off of stock, Jim's personal investment in the company's stock, as well as his company-operated retirement plan, will be in jeopardy of severe losses. After close inspection of the financial statements, Jim notices that the balance of the Deferred Revenue account is $120,000. This amount represents payments in advance from long-term customers ($80,000) and from relatively new customers ($40,000). Jim comes to you, the company's accountant, and suggests that the firm should recognize as revenue in 2018 the $80,000 received in advance from long-term customers. He offers the following explanation: “First, we have received these customers' cash by the end of 2018, so there is no question about their ability to pay. Second, we have a long-term history of fulfilling our obligation to these customers. We have always stood by our commitments to our customers and we always will. We earned that money when we got them to sign the sixmonth contract.”

1. Summarize your case.

2. What is the dilemma?

3. What is the ethical solution?

4. What would you do if you are faced with the dilemma?

The dataset Golfers2008.xlsx saved in Datasets in Blackboard contains data on the top 40 golfers in 2008. This was the year when Tiger Woods won the U.S. Open in June and then had year-ending surgery.

Using all the explanatory variables, run a regression predicting Earnings per Round.

Determine the best fit model by removing any insignificant x-variables.   Rerun the analysis with your best fit model. Make a clear notation of which model is your best-fit model by labeling the worksheet of that model “BEST FIT MODEL”.