This is a 3-part question:
(1) Analyze the financial statements below as an individual who would invest in this company. Would you invest? Why or why not? Support your answer using what you have learned and type an essay supporting your answer. (6 points)
(2) Sales increase by 10 percent. What are the Additional Funds Needed (AFN)? (2.5 points)
(3) Assume you need $100,000 in financing for Additional Funds Needed. You go to the bank and they will loan you $100,000 at 5 percent interest. What is your annual payment to pay off this loan? (2.5 points)
The balance sheet and income statement shown below are for Pettijohn Inc.
|
Balance Sheet (Millions of $) |
|
|
Assets |
2012 |
|
Cash and securities |
$ 1,554.0 |
|
Accounts receivable |
9,660.0 |
|
Inventories |
13,440.0 |
|
Total current assets |
$24,654.0 |
|
Net plant and equipment |
17,346.0 |
|
Total assets |
$42,000.0 |
|
Liabilities and Equity |
|
|
Accounts payable |
$ 7,980.0 |
|
Notes payable |
5,880.0 |
|
Accruals |
4,620.0 |
|
Total current liabilities |
$18,480.0 |
|
Long-term bonds |
10,920.0 |
|
Total debt |
$29,400.0 |
|
Common stock |
3,360.0 |
|
Retained earnings |
9,240.0 |
|
Total common equity |
$12,600.0 |
|
Total liabilities and equity |
$42,000.0 |
|
Income Statement (Millions of $) |
2012 |
|
Net sales |
$58,800.0 |
|
Operating costs except depr'n |
$54,978.0 |
|
Depreciation |
$ 1,029.0 |
|
Earnings bef int and taxes (EBIT) |
$ 2,793.0 |
|
Less interest |
1,050.0 |
|
Earnings before taxes (EBT) |
$ 1,743.0 |
|
Taxes |
$ 610.1 |
|
Net income |
$ 1,133.0 |
|
Other data: |
|
|
Shares outstanding (millions) |
175.00 |
|
Common dividends |
$ 509.83 |
|
Int rate on notes payable & L-T bonds |
6.25% |
|
Federal plus state income tax rate |
35% |
|
Year-end stock price |
$77.69 |
In: Finance
Angela, who is a single individual, rented an apartment on 72nd Street in New York City ("the apartment") on January 1 of Year 1. This was the only residence in which she lived. Two years later (January 1 of year 3) Angela purchased the same apartment from the owner for $1,200,00. 6 months later (July 1 of Year 3) Angela was told by her physician that she should move out of New York City permanently due to an underlying raspatory medical condition which made the New York City air quality and population density particularly dangerous for Angela. As a result, Angela put her apartment on the market and moved immediately to Arizona. The apartment sold on January 1 of Year 4 for $1,420,000 sale price, and Angela incurred $30,000 of selling expenses. How much income, if any, will Angela recognize from the sale of the apartment?
a. $0
b. $65,000
c. $95,000
d. $220,000
e. None of a-d is an amount Angela will recognize
In: Accounting
You are an I/O psychologist consulting with an individual who wants to start a small business (two or more employees). Your client wants the business to be one in which the employees have a manageable level of stress, so you will need to consider the workload and environmental factors. Your client also wants to promote good communication among all employees, so you may need to consider the office layout, design, and other factors. Your client wants his/her employees to enjoy their jobs and be committed to the company. Consider the responsibilities of the necessary employment positions. Consider what needs to be included in the employee selection process (interview only, tests, screenings, etc.) and what types of training may need to be provided. Design a list of recommendations for your client’s basic plan for his/her small business.
In: Operations Management
In: Physics
A statistical program is recommended.
A marketing professor at Givens College is interested in the relationship between hours spent studying and total points earned in a course. Data collected on 10 students who took the course last quarter follow.
| Hours Spent Studying |
Total Points Earned |
|---|---|
| 45 | 40 |
| 30 | 35 |
| 90 | 75 |
| 60 | 65 |
| 105 | 90 |
| 65 | 50 |
| 90 | 90 |
| 80 | 80 |
| 55 | 45 |
| 75 | 65 |
(a)
Develop an estimated regression equation showing how total points earned can be predicted from hours spent studying. (Round your numerical values to two decimal places.)
ŷ =
(b)
Test the significance of the model with α = 0.05. (Use the F test.)
State the null and alternative hypotheses.
H0: β0 = 0
Ha: β0 ≠ 0
H0: β0 ≠ 0
Ha: β0 = 0
H0: β1 = 0
Ha: β1 ≠ 0
H0: β1 ≠ 0
Ha: β1 = 0
H0: β1 ≥ 0
Ha: β1 < 0
Find the value of the test statistic. (Round your answer to two decimal places.)
Find the p-value. (Round your answer to three decimal places.)
p-value =
State your conclusion.
Do not reject H0. We cannot conclude that the relationship between hours spent studying and total points earned is significant.
Reject H0. We conclude that the relationship between hours spent studying and total points earned is significant.
Do not reject H0. We conclude that the relationship between hours spent studying and total points earned is significant.
Reject H0. We cannot conclude that the relationship between hours spent studying and total points earned is significant.
(c)
Predict the total points earned by Mark Sweeney. He spent 85 hours studying. (Round your answer to two decimal places.)
points
(d)
Develop a 95% prediction interval for the total points earned by Mark Sweeney. (Round your answers to two decimal places.)
points to points
In: Statistics and Probability
A marketing professor at Givens College is interested in the relationship between hours spent studying and total points earned in a course. Data collected on 10 students who took the course last quarter follow.
| Hours Spent Studying |
Total Points Earned |
|---|---|
| 45 | 40 |
| 30 | 35 |
| 90 | 75 |
| 60 | 65 |
| 105 | 90 |
| 65 | 50 |
| 90 | 90 |
| 80 | 80 |
| 55 | 45 |
| 75 | 65 |
(a)
Develop an estimated regression equation showing how total points earned can be predicted from hours spent studying. (Round your numerical values to two decimal places.)
ŷ =
(b)
Test the significance of the model with α = 0.05. (Use the F test.)
State the null and alternative hypotheses.
H0: β1 = 0
Ha: β1 ≠ 0
H0: β0 = 0
Ha: β0 ≠
0
H0: β0 ≠ 0
Ha: β0 = 0
H0: β1 ≠ 0
Ha: β1 = 0
H0: β1 ≥ 0
Ha: β1 < 0
Find the value of the test statistic. (Round your answer to two decimal places.)
________
Find the p-value. (Round your answer to three decimal places.)
p-value = ______
State your conclusion.
Reject H0. We cannot conclude that the relationship between hours spent studying and total points earned is significant.
Reject H0. We conclude that the relationship between hours spent studying and total points earned is significant.
Do not reject H0. We conclude that the relationship between hours spent studying and total points earned is significant.
Do not reject H0. We cannot conclude that the relationship between hours spent studying and total points earned is significant.
(c)
Predict the total points earned by Mark Sweeney. He spent 70 hours studying. (Round your answer to two decimal places.)
__________ points
(d)
Develop a 95% prediction interval for the total points earned by Mark Sweeney. (Round your answers to two decimal places.)
______points to _____points
In: Statistics and Probability
A group of 10 students who wish to enter a university achieve the following scores:
25, 17 , 29 , 29, 26, 24 , 23 , 26 , 24 , 33
...Construct a confidence interval for the proportion of students scoring 26 points or less.
...construct a 90% confidence interval for the average score of all students
In: Statistics and Probability
Q1. Under US, income tax law deductions are Classifying into Deductions for and deductions from adjusted gross income. Discuss in detail the items of each kind.
Q2. Explain the different concepts of income from accounting, economics and taxation perspectives (DO NOT copy from the slides). .
--
Q3. Calculate the taxable income for each case below:
1- A taxpayer who is 30 old and single, has adjusted gross income of $60,000 and itemized deductions of $4,000. In 2013.
2- A single taxpayer provided the following information for 2013: Salary $90,000 Interest on local government bonds (qualifies as a tax exclusion) 5,000 Allowable itemized deductions 10,000
3- A taxpayer, who is single and age 44, received $60,000 of gross income and had $5,000 of deductions for AGI and $5,000 of itemized deductions.
In: Accounting
Which of the following is not covered by the Fair Trading Act:
|
Sale of milk by a Dairy Shop |
||
|
Sale of a work of Art by an antiques shop |
||
|
A private sale of goods by Fred who is clearing old items from his garage |
||
|
Sale of a motor car by a car dealer at her car dealership |
The Fair-Trading Act 1986 is enforced by:
|
The Registrar of Lands |
||
|
The Registrar of Companies |
||
|
The Commerce Commission |
||
|
The Insurance Ombudsman |
f a company breaches the provisions of the Fair-Trading Act it can be:
|
fined up to a maximum of $100 000 |
||
|
fined up to a maximum of $200 000 |
||
|
fined up to a maximum of $400 000 |
||
|
fined up to a maximum of $600 000 |
The standard that is used in the Fair Trading Act is that of the fair minded or reasonable person.
True
False
The Fair Trading Act provides for both individual and corporate fines.
True
False
In: Economics
These are a list of the transactions I have from playing Monopoly. I need to create a balance sheet, income statement, and cash flow.
STOCK- Issued $1500 common stock
LAND/STOCK- $600 issued for purchase of Land
1 RENT REVENUE- $16.00 From New York Ave
2 CONSULTING REV(ACCTS REC.) - Collected $200 for passing Go
3 LAND - Purchase Kentucky Ave $220.00
4 RENT EXPENSE - $200.00 for landing on Railroad
5 CONSULTING REV(ACCTS REC.) - Collected $200 for passing Go
6 DIVIDENDS - Paid $200 to bank for landing on Income Tax
7 RENT REVENUE - $2.00 from Mediterranean Ave.
8 UTILITIES - Purchase Electric Company $150.00
9 INVESTMENT INCOME - Earned $20.00 from Electric Company
10 RENT EXPENSE - $26.00 for landing on Pacific Ave.
11 RENT REVENUE - $16.00 from New York Ave.
12 DIVIDENDS - Paid $75.00 for Luxury Tax
13 CONSULTING REVENUE - $200.00 For Passing Go
14 LAND - Purchased Oriental Ave. for $100.00
15 RENT REVENUE - Movie Company to use property as set, collected $200.00
16 LAND - Purchased Atlantic Ave. for $200.00
17 LAND - Purchased Indiana Ave. for $200.00
18 BUILDINGS - Purchased a house for Kentucky Ave. For $150.00 19 DIVIDENDS - Paid $75.00 for Luxury Tax
20 CONSULTING REVENUE - $200.00 For Passing Go
21 TRAVEL EXPENSE - Paid $100 for landing on Pacific Railroad
22 RENT REVENUE - $40 from Illinois Ave.
23 BUILDINGS - Purchased a house for Indiana Ave. For $150.00
24 RENT EXPENSE - Paid $12.00 from landing on Virginia Ave.
25 RENT EXPENSE - Paid $14.00 for landing on St. James Place
26 RENT REVENUE - Earned $10 from States Ave.
27 RENT EXPENSE - Paid $56.00 for landing on Pennsylvania Ave.
28 RENT REVENUE - Earned $90 from Kentucky Ave.
29 CONSULTING REVENUE - $200.00 For Passing Go
30 TRAVEL EXPENSE - Paid $100 for landing on Pacific Railroad
31 RENT REVENUE - Earned $90.00 from Indiana Ave.
32 RENT EXPENSE - Paid $56.00 for landing on Pennsylvania Ave.
33 DIVIDENDS - Paid $75.00 for Luxury Tax
34 FINE EXP - Paid $50.00 Fee to get out of Jail
In: Accounting