On January 1, 2020, Allan Company bought a 15 percent interest in Sysinger Company. The acquisition price of $208,500 reflected an assessment that all of Sysinger’s accounts were fairly valued within the company’s accounting records. During 2020, Sysinger reported net income of $112,800 and declared cash dividends of $33,700. Allan possessed the ability to significantly influence Sysinger’s operations and, therefore, accounted for this investment using the equity method.

On January 1, 2021, Allan acquired an additional 80 percent interest in Sysinger and provided the following fair-value assessments of Sysinger’s ownership components:

Consideration transferred by Allan for 80% interest	$	1,425,600
Fair value of Allan's 15% previous ownership		267,300
Noncontrolling interest's 5% fair value		89,100
Total acquisition-date fair value for Sysinger Company	$	1,782,000

Also, as of January 1, 2021, Allan assessed a $420,000 value to an unrecorded customer contract recently negotiated by Sysinger. The customer contract is anticipated to have a remaining life of four years. Sysinger’s other assets and liabilities were judged to have fair values equal to their book values. Allan elects to continue applying the equity method to this investment for internal reporting purposes.

At December 31, 2021, the following financial information is available for consolidation:

	Allan Company				Sysinger Company
Revenues	$	(977,600	)		$	(404,000	)
Operating expenses		645,600				244,400
Equity earnings of Sysinger		(51,870	)			0
Gain on revaluation of Investment in Sysinger to fair value		(46,935	)			0
Net income	$	430,805			$	159,600
Retained earnings, January 1	$	(964,600	)		$	(638,400	)
Net income		(430,805	)			(159,600	)
Dividends declared		140,000				42,400
Retained earnings, December 31	$	(1,255,405	)		$	(755,600	)
Current assets	$	287,800			$	574,300
Investment in Sysinger (equity method)		1,704,490				0
Property, plant, and equipment		846,000				615,000
Patented technology		870,600				386,000
Customer contract		0				0
Total assets	$	3,708,890			$	1,575,300
Liabilities	$	(1,326,485	)		$	(106,700	)
Common stock		(920,000	)			(522,000	)
Additional paid-in capital		(207,000	)			(191,000	)
Retained earnings, December 31		(1,255,405	)			(755,600	)
Total liabilities and equities	$	(3,708,890	)		$	(1,575,300	)

1. How should Allan allocate Sysinger’s total acquisition-date fair value (January 1, 2021) to the assets acquired and liabilities assumed for consolidation purposes?

2. Calculate the following as they would appear in Allan's pre-consolidation 2021 statements.

• Equity in earnings of Sysinger
• Gain on revaluation of Investment in Sysinger to fair value
• Investment in Sysinger

3. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021.

At year-end, there were no intra-entity receivables or payables.

3) Consider the following activities taking place in the United States. For each activity, indicate whether or not it should be included in U.S. GDP. If you determine that the activity would add to U.S. GDP. then indicate which category of Final Demand it should be in. (12 points) a) A college student spends $75 to buy a new textbook from the bookstore. b) Your parents pay your tuition bill at your university in the U.S. c) An iPhone manufactured in Seattle. Washington by Apple remains unsold at the end of the year. d) An unemployed worker receives an unemployment compensation check from the U.S. government. e) Henry, who owns a construction company in Florida. buys tools produced in Germany for his company. f) The U.S. government hired 500 more engineers to design a wall between the U.S. and Mexico.

Andy’s Co. is a manufacturing firm of a computer hardware device. Its sales forecasts for the year 2020 is as follows:

Quarter	Sales in units	Price	Revenue
Q1, 2020	500	$              400	$     200,000
Q2, 2020	1000	400	400,000
Q3, 2020	1000	400	400,000
Q4, 2020	1000	400	400,000
Q1, 2021	2000	400	800,000
Q2, 2021	1500	400	600,000
Q3, 2021	1000	$              400	$     400,000

The company will start its business this year with $30,000 of cash balance. As of Q4 of the fiscal year 2019, it does not have any material, work in progress, or finished goods inventories. The company currently has no debt and entirely owned by shareholders. The balance sheet of Andy’s Co. as of the end of the year 2019 is as follows:

Cash

30,000

Equity

30,000

Direct material costs per unit are $150. Each unit requires three direct labor hours to be completed. The hourly wage is $40. For the year 2020, the company expects the variable overhead to be $136,000. The company allocates variable overhead by direct labor hours. Fixed overhead is expected to be $204,000, including the depreciation of the equipment ($47,500). The company will evenly allocate the fixed overhead for each quarter.

At the beginning of the year 2020, the company will invest in $95,000 for the equipment.

The company supplies products with no material selling and administrative expenses. Their products are immediately picked up by other manufacturers in the complex for cash. Due to the highly efficient just-in-time inventory management system, the company does not hold materials inventories. All materials are purchased just enough to be used in production each quarter. The company also does not hold work in progress inventories. However, they keep 10% of next quarter’s sales as ending inventories of finished goods.

The company also engages in flexible cash management. They require a minimum balance of zero. Whenever they run short of cash, they can borrow from a partnered venture capital at the quarterly interest rate of 2%. They obtain the short-term loan at the beginning of the quarter, and they repay both principal and interest at the end of the quarter if they have enough cash.

The company will incur 20% of taxable income (operating income less interest expenses) as tax expenses but will pay the income taxes in the year 2021.

5) Complete the overhead budget including the cash disbursement for Andy’s Co. for the fiscal year 2020

6) Complete the cost of goods manufactured budget for Andy’s Co. for the fiscal year 2020

7) Complete the cost of goods sold budget for Andy’s Co. for the fiscal year 2020

8) Complete the cash budget for Andy’s Co. for the fiscal year 2020

9) Complete the income statement for Andy’s Co. for the fiscal year 2020

10) Complete the balance sheet for Andy’s Co. for the fiscal year 2020

11) An alternative plan for operation requires more investment in the equipment. If the company can invest $210,000 instead of $95,000 in the equipment at the beginning of the year 2020, the company can reduce direct labor hours required for each unit to 2 hours. The depreciation of the equipment will be $105,000 for the year 2020. Calculate the impacts of the additional investment on net income and operating cash flows for the year 2020. You can present an alternative income statement, cash budget, and balance sheet.

12) The executives of Andy’s Co. are debating over whether to invest $95,000 or $210,000. The market analysts suggest that the demand for the products will be at a similar level over the next few years. Based on the sales forecasts of the market analysts, provide advice to the executives. Support your advice quantitatively.

On June 1, 2020, BlueSky Company provided services to GreenGrass Company and received a 1-year, 8%, $150,000 note, due May 31, 2021. Interest is payable at maturity. BlueSky records adjusting entries annually at December 31.

a. Compute the total interest on the note. How much interest revenue will be recognized in 2020? In 2021?

b. Record the June 1, 2020, journal entry for BlueSky.

c. Record the December 31, 2020, adjusting journal entry for BlueSky.

d. BlueSky’s 2020 preliminary net income of $100,000 was computed without including any amounts related to the receipt of the note or the 12-31-20 adjusting entry. Determine the correct amount of 2020 net income. Ignore taxes.

e. On BlueSky’s December 31, 2019, balance sheet, retained earnings was reported at $300,000. In 2020, the company paid $40,000 in dividends. What is the December 31, 2020, retained earnings balance?

f. What amount(s) will BlueSky report on the December 31, 2020, balance sheet related to the note? How will these amounts be classified?

e. Record the May 31, 2021, journal entry for BlueSky for the receipt of principal and interest.

There are two types of genetic drift. Describe and give an example of both the bottle neck effect and the founder effect.

Your assignment should be 250-500 words in length.

Q4. What is the role of marketing in an organization?

(Please the Expert needs to submit a detailed answer which must be a standout in a very competitive MBA Marketing Class).

I need assistance determining the steps required to answer the Chapter 4 Data Case questions 2, 3, and 4 in the Fundamentals of Corporate Finance 4th edition by Berk, DeMarzo and Harford. I have provided the answer to question 1. An analysis isn't required. Only the steps to obtain the answers. Can anyone help?

Data Case: Assume that today is August 5, 2015, Natasha Kingery is 30 years old and has a Bachelor of Science degree in computer science. She is currently employed as a Tier 2 field service representative for a telephony corporation located in Seattle, Washington, and earns $38,000 a year that she anticipates will grow at 3% per year. Natasha hopes to retire at age 65 and has just begun to think about the future.

Natasha has $75,000 that she recently inherited from her aunt. She invested this money in 10-year Treasury bonds. She is considering whether she should further her education and would use her inheritance to pay for it. She has investigated a couple of options and is asking for your help as a financial planning intern to determine the financial consequences associated with each option. Natasha has already been accepted to two programs and could start either one soon.

One alternative that Natasha is considering is attaining a certification in network design. This certification would automatically promote her to a Tier 3 field service representative in her company. The base salary for a Tier 3 representative is $10,000 more than the salary of a Tier 2 representative, and she anticipates that this salary differential will grow at a rate of 3% a year for as long as she remains employed. The certification program requires the completion of 20 Web-based courses and a score of 80% or better on the final exam. She has learned that the average amount of time necessary to finish the program is one year. The total cost of the program is $5,000, due when she enrolls in the program. Because she will do all the work for the certification on her own time, Natasha does not expect to lose any income during the certification process.

Another option is going back to school for an MBA degree. With an MBA degree, Natasha expects to be promoted to a managerial position in her current firm. The managerial position pays $20,000 a year more than her current position. She expects that this salary differential will also grow at a rate of 3% per year for as long as she keeps working. The evening program, which will take three years to complete, costs $25,000 per year, due at the beginning of each of her three years in school. Because she will attend classes in the evening. Natasha doesn't expect to lose any income while she is earning her MBA if she chooses to undertake it.

1. Determine the interest rate Natasha is currently earning on her inheritance by going to Yahoo! Finance (http://finance.yahoo.com) and clicking the 10 Yr. Bond link in the Market Summary section or enter ^TNX in the symbol lookup field. Then go to the Historical Prices link and enter the appropriate date, August 5, 2015, to obtain the closing yield or interest rate she is earning. Use this interest rate as the discount rate for the remainder of this problem. Interest rate is 2.268%

2. Create a timeline in Excel for Natasha's current situation, as well as the certification program and MBA degree options, using the following assumptions:

a. Salaries for the year are paid only once, at the end of the year.

b. The salary increase becomes effective immediately upon graduating from the MBA program or being certified. That is, because the increases become effective immediately but salaries are paid at the end of the year, the first salary increase will be paid exactly one year after graduation or certification.

3. Calculate the present value of the salary differential for completing the certification program. Subtract the cost of the program to get the value of undertaking the certification program.

4. Calculate the present value of the salary differential for completing the MBA degree. Calculate the present value of the cost of the MBA program. Based on your calculations, determine the value of undertaking the MBA.

5. Based on your answers to Questions 3 and 4, what advice would you give to Natasha? What if the two programs are mutually exclusive? If Natasha undertakes one of the programs, there is no further benefit to undertaking the other program. Would your advice change?

David Jetter graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve his goal. After examining schools, he has narrowed his choice to either Prentice University or Mount Alliance College. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will allow its students to work while enrolled in its MBA program.

David currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $50,000 per year, and his salary expected to increase at 3 % per year until retirement. He is currently 28 years old and expects to work for 40 more years. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 %. David has savings account with enough money to cover the entire cost of his MBA program.

The Ritt College of Business at Prentice University is one of the top MBA programs in the country. The MBA degree requires two years of full time enrollment at the university. The annual tuition is $65,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $3000 per year. David expects that after graduation from Prentice, he will receive a job offer for about $110,000 per year, with a $20,000 signing bonus. The salary at this job will increase at 4 % per year. Because of the higher salary, his average income tax rate will increase to 31 %.

The Bradel School of Business at Mount Alliance College began its MBA program 16 years ago. The Bradel School is smaller and less well known than the Ritt College. Bradel offers an accelerated, one – year program, with a tuition cost of $80,000 to be paid upon matriculation. Books and other supplies for the program are expected to cost $4,500. David thinks that he will receive an offer of $92,000 per year upon the graduation, with an $18,000 signing bonus. The salary at this job will increase at 3.5 % per year. His average tax rate at this level of income will be 29 %.

Both schools offer a health insurance plan that will cost $3,000 per year, payable at the beginning of the year. David also estimates that room and board expenses will cost $2,000 more per year at both schools than his current expenses, payable at the beginning of each year. The appropriate discount rate is 6.5 percent.

1. How does David’s age affect his decision to get an MBA? Explain why?

2. What other, perhaps non- quantifiable factors affect David’s decision to get an MBA? Explain in detail

3. Assuming all salaries are paid at the end of each year, what is the best option for David – from a strictly financial standpoint? Explain why in detail with calculations.

4. David believes that the appropriate analysis is to calculate the future value of each option. How would you evaluate this statement? So what is the future value of each option?

5. What initial salary would David need to receive to make him indifferent between attending Prentice University and staying in his current position?
Explain in detail with calculations.

Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has narrowed his choice to either Wilton University or Mount Perry College. Although internships are encouraged by both schools, to get class credit for internship, no salary can be paid. Other than internships, neither school will allow his students to work while enrolled in its MBA program. Ben currently works at the money management firm of Dewey and Louis. His annual salary at the firm is $50,000 per year, and his salary is expected to increase 3 percent per year until retirement. He is currently 28 years old and expected to work for 35 more years. His current job includes a fully paid health insurance plan, and his currently average tax rate is 26 percent. Ben has a savings account with enough money to cover the entire cost of his MBA program. The Ritter College of Business at Wilton University is one of the top MBA programs in the country. The MBA degree requires two years of full-time enrollment at the University. The annual tuition is $60,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $2,500 per year. Ben expects that after graduation from Wilton, he will receive a job offer for about $95,000 per year, with a $15,000 signing bonus. The salary at this job will increase 4 percent per year. Because of the higher salary, his average tax rate will increase to 31 percent. The Bradley School of Business at Mount Perry College began its MBA 16 years ago. The Bradley School is smaller and less well known than Ritter College. Bradley offer an accelerated , one-year program, with a tuition cost of $75,000 to be paid upon matriculation. Books and other supplies for the program are expected to cost $3,500. Ben thinks that he will receive an offer of $78,000 per year upon graduation, with a $10,000 signing bonus. The salary at this job will increase at 3.5 percent per year. His average tax rate at this level of income will be 29 percent. Both schools offer a health insurance plan that will cost $3,000 per year, payable at the beginning of the year. Ben also estimates that room and board expenses will cost $20,000 per year at either school. The appropriate discount rate is 6.5 percent.

Given the case above, use Excel spreadsheet to analyze problems 3 and 4. Inside the Excel file, also answer questions 1 and 2 in brief discussion.

1. How does Ben's age affect his decision to get an MBA?

2. What other, perhaps nonquantifiable factors affect Ben's decision to get an MBA?

3. Assuming all salaries are paid at the end of each year, what is the best option for Ben-from a strictly financial point?

4. What initial salary would Ben need to receive to make him indifferent between attending Wilton University and staying in his current position?

The outbreak and spread of COVID-19 virus has had effects beyond the health issues. Discuss how Covid-19 has or can have an impact on the U.S. or global or any country's economic conditions. Assume that you are thinking to pursue your enterprise venture in 2020, what are the effects of this virus on your plan. Of what economic indicators do you expect to resume your venture.