Required information

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Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units.

Required:
1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed.

At this point Time Hayden had done as much as he could with his personal credit cards and using his own cash. Now he needs $1 million to go to the next phase. He was able to get half of that through four corporations if he could raise the other half himself. He presented to a number of venture capitalist, however, it was his parents, friends and other who knew of him or one of the other investors. (PLEASE ANSWER ALL QUESTIONS)

Mini-Case Case Questions

Why might investors want a convertible note instead of getting stock in a start-up?

From the standpoint of the smaller investors, what are the advantages or disadvantages of having a single large investor (like one of the entertainment companies) along with the smaller ones?

If the large firms decide not to invest, what are the options available to Tim and how likely will he be to raise the capital needed?

Finally, what do you think is the answer to Tim’s question – what could go wrong now?

Use the following information on Disney to answer the case questions.

◼ Disney’s current stock price is $140.00 per share. The average growth rate of the company’s dividend has been 17.7% from 2004 through 2018

◼ Disney’s return on equity is 28.0% and the company retains approximately 80.0% of its profits while paying out the remaining 20.0% in dividends.

◼ The company’s stock currently trades at 21.21 times its current year earnings estimate of $6.60 per share.

◼ Analysts expect the company to earn $6.19 per share in 2020 and $6.93 in 2021. ◼ Disney’s peers in media networks trade at 25.5 times their current year earnings estimates while peers in parks, experiences and consumer products at 21.9; studio entertainment at 19.1 and DTCI at 14.1.

◼ Assume the expected return for Disney’s stock is 6.9%.

What is Disney stock’s intrinsic value using The Constant Growth Model and the Multi-Stage Growth Model

Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,910 and sells the remote separately for $180, and offers the entire package for $2,220. VP does not sell the installation service separately. VP is aware that other similar vendors charge $230 for the installation service. VP also estimates that it incurs approximately $180 of compensation and other costs for VP staff to provide the installation service. VP typically charges 50% above cost on similar sales. Required: 1. to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches: Adjusted Market Assessment, Expected Cost Plus Margin, and Residual.

Consider the Solow Growth model, and assume there is no technological change. The production function is F(K,L) = K^aN^1−α, α = 1/3. Population growth rate n = 0.01. Capital depreciation δ = 0.09. Savings rate s = 0.4.
(a) Write down the law of motion for capital per worker.

(b) Compute the steady state capital per worker and output per worker.

(c) Suppose a book called Let’s Party Like There is No Tomorrow reduces the nation’s savings rate to 0.35. The change in saving behavior is temporary, and the saving rate will restore to 0.4 after two years. Explain how output per worker changes in the short run and in the long run.

(d) Suppose a book called Let’s Party Like There is No Tomorrow: This Time For Real permanently reduces the nation’s savings rate to 0.35. Does consumption in the steady state increase or decrease? By how much? (For those who want more entertainment: Is the result expected? Why or why not?)

At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

Cash balance, September 1 (from a summer job) ...................................... $6,000

Purchase season football tickets in September........................................... 150

Additional entertainment for each month................................................... 250

Pay fall semester tuition in September ...................................................... 3,500

Pay rent at the beginning of each month.................................................... 450

Pay for food each month............................................................................. 400

Pay apartment deposit on September 2 (to be returned December 15) ...... 450

Part-time job earnings each month (net of taxes) ...................................... 1,300

the total cash payments for December are $698? TRUE or FALSE

cash balance at end of month for December is? ………

Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

based on this budget which month or months will cash decrease?

There are a number of methods by which a corporate can go about structuring their organisation. The text lists the relative advantages and disadvantages of each method. Given your understanding of this, justify which organisational structure you would recommend for the following situations:

a.   a government owned telecommunications company with a monopoly in its market

b.   a private entrepreneurial organisation that develops new hand held entertainment devices in Japan

c.   a large retailer that sells an array of goods including groceries, hardware, clothing (premium and low-cost) and liquor

d.   a multinational corporation that produces a single product, but must adapt it for each county they operate in due to legal constraints.

ANS:  

This question requires students to consider the advantages and disadvantages of each of the structure types mentioned in the text against a number of different contexts. There may be a number of structures that can be justified, and this question allows the students to explore the variables they think are important to their choice.

PTS:   1   DIF:   Difficult       NAT: AACSB Analytic  

TOP:   Organisational structure

Listed below are several transactions that took place during the second and third years of operations for RPG Company.

Year 2 Year 3

Amounts billed to customers for services rendered $400,000 $500,000

Cash collected from credit customers 310,000 450,000

Cash disbursements:

Payment of rent 85,000 0

Salaries paid to employees for services rendered during the year 145,000 165,000

Travel and entertainment 35,000 45,000

Advertising 17,500 40,000

In addition, you learn that the company incurred advertising costs of $30,000 in year 2, owed the advertising agency $5,500 at the end of year 1, and there were no liabilities at the end of year 3. Also, there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3.

Required:

1. Calculate accrual net income for both years.

2. Determine the amount due the advertising agency that would be shown as a liability on RPG's balance sheet at the end of year 2.

If you use your office computer 15 hours per week, and do not unplug it when it is not in use, how much carbon dioxide is produced from the vampire energy used by the office computer in one year ? help (energyvampires)

Express your answer rounded to the nearest tenth of a pound of carbon dioxide.
lb of CO2

Stand-by Power Consumption by Type of Appliance

You have been accepted as a Junior Project Manager at Super IT Pty. Ltd. Your first task assigned by the Senior Project Manager is to select and prioritise the best mobile application project in response to COVID-19 and the second task assigned is to write the Project Scope of the chosen project. These candidate projects include:

Gaming or entertainment application for COVID-19 isolated patients.

 Mobile applications in support of contact tracing for COVID-19.

 Mobile application information to provide the latest update of COVID-19.

 Mobile health application to contact doctors.

 Chatting application or social media platform for COVID-19 patient and family.

You have decided to use Project Selection and Prioritisation Matrix to select the best project, and then you will write the Project Scope of it.

question 2.1 Draw the Project Selection and Prioritisation Matrix and explain how you are finally able to select the chosen project. [10 marks]

question 2.2 Write the Project Scope statements for your chosen project.