Question 1

Ben Limited has a 31 December year end. Employees work a 5 day week and are entitled to 20 paid working days of vacation per annum.

Employee statistics are as follows:

Number of employees : 50 000

Average annual salary 2017 : 100 000

Unused leave 31 December 2017 : 10 Days

Leave taken in the year ended 31 December 2018 : 14 Days

* S1 and S2 : On average, 9 Earned in 2018, 5 Earned in 2017

* S3 : All earned in 2018

Leave expected to be taken during the year ended 31 December 2019 : 15 Days

* S1 and S2 : On average, 12 Days earned in 2019, 3 Days earned in 2018

* S3 : All days earned in 2019

Additional information :

1. No employees left or joined the company in the past 2 years

2. Salaries increased by 20% from 01 January 2018

3. Past estimates show that management is able to correctly forecast the number of vacation days that will be used in the following financial year.

Required :

Determine the Leave Pay Provision, and Provide the Journal at the 31 December 2018 assuming that :

1.1 Leave accumulates and vests indefinitely

1.2. Leave accumulates for one year after it accrues but is non-vesting

1.3. Leave does not accumulate and is non-vesting

Show all workings and journal entries

My Major: MBA in Financial Engineering

Thesis Topic : The Impact of Block Chain Technology on Financial Markets,

Kindly provide with research questions for my thesis topic please?

Is the institution we call Wall Street a “structure of sin,” and how about even MBA programs being structures of sin? Write a one page answer on your thoughts.

Discuss the role and implementation of Material Control and Accountancy in the context of nuclear safeguards. Describe the purpose, use, and implementation of Key Measurement Points (KMP) and Material Balance Areas (MBA).

1) Briefly describe the three primary risk mitigation strategies based on the idea of flexibility that supply chain managers can use. Supply Chain Management MBA Course

What text or resources will be good to use for MBA 560 Financial and Managerial Accounting? I am looking for resources that will help me with the mathematical portion for my upcoming class.

Learning Assessment

Conch Republic Electronics

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company's finance department. One of the major revenue-producing items manufactured by Conch Republic is a smart phone. Conch Republic currently has one smart phone model on the market, and sales have been excellent. The smart phone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smart phone has limited features in comparison with newer models. Conch Republic spent $1,000,000 to develop a prototype for a new smart phone that has all the features of the existing smart phone but adds new features such as WiFi tethering, dual cameras, and larger screen. The company has spent a further $400,000 for a marketing study to determine the expected sales figures for the new smart phone. Conch Republic can manufacture the new smart phones for $550 each in variable costs. Fixed costs for the operation are estimated to run $6.1 million per year. The estimated sales volume is 205,000, 215,000, 175,000, 125,000, and 75,000 per year for the next five years, respectively. The unit price of the new smart phone will be $799. The necessary equipment can be purchased for $40.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $6.1 million. As previously stated, Conch Republic currently manufactures a smart phone. Production of the existing model is expected to be terminated in two years. If Conch Republic does not introduce the new smart phone, sales will be 95,000 units and 65,000 units for the next two years, respectively. The price of the existing smart phone is $699 per unit, with variable costs of $350 each and fixed costs of $4.3 million per year. If Conch Republic does introduce the new smart phone, sales of the existing smart phone will fall by 35,000 units per year, and the price of the existing units will have to be lowered to $499 each. Net working capital for the smart phones will be 25 percent of sales and will occur with the timing of the cash flows for the year; for example, there is no initial outlay for NWC, but changes in NWC will first occur in Year 1 with the first year's sales. Conch Republic has a 35 percent corporate tax rate and a required return of 18 percent. Shelley has asked Jay to prepare a report that answers the following questions:

A. What is the payback period of the project?

B. What is the discounted payback period of the project?

C. What is the IRR of the project?

D. What is the net present value of the project?

E. At what selling price would the company be indifferent to taking on the project? (NPV = 0)

F. At what variable cost would the company be indifferent to taking on the project? (NPV = 0)

G. What recommendation would they make based on the pro-forma statements?

I have a spreadsheet started with values included but I'm stuck and don't know where to go next.

All that is needed to solve is QUESTION 5 & its sub-parts...

Asymmetric Information and Separating Equilibrium

A population has two equal-sized members of "healthy" and "unhealthy" individuals. Members of each type have the same, identical, utility function: U = 20Y0.5 (i.e. 20 x Y raised to the 0.5 power), where Y is annual income.

Assume each individual, in either group, has disposable income (after normal expenses) of $19,000 a year. If in need of major medical care (and does not have insurance), each individual will have $15,000 in medical expenses. A "healthy" individual has a 6% probability, while an "unhealthy" individual has a 18% probability, of requiring major medical care.

Use the information above to answer the questions (1 through 5) below.

NOTE: An actuarially fair insurance premium (AFIP) is always calculated as: AFIP = (Medical expenses covered) x (Probability of occurring).

1. Calculate the AFIP of the full-coverage policy for a "healthy" individual.

2. Calculate the AFIP of the full-coverage policy for an "unhealthy" individual.  

3. Calculate the AFIP of a deductible policy for a "healthy" individual, for which the deductible is equal to $12,000.

4. Calculate the AFIP of a deductible policy for an "unhealthy" individual, for which the deductible is equal to $12,000.

5. Suppose health status ("healthy" or "unhealthy") represents asymmetric information: Each individual knows her or his health status, but insurance companies do not.  

Now, suppose an insurance company offers only two types of policies: 1) a full-coverage policy with premium equal to the most expensive (regardless of insurance type) of the two full-coverage policies.

a. In the boxes below, calculate expected utility for a "healthy" individual, for each scenario:

No Insurance:

Most Expensive Full-Coverage Policy (Option 1):

Least Expensive Deductible Policy (Option 2):

b. In the boxes below, calculate expected utility for an "unhealthy" individual, for each scenario:

No Insurance:

Most Expensive Full-Coverage Policy (Option 1):

Least Expensive Deductible Policy (Option 2):

c. Based on your answers in 5a. and 5b., which option would a representative member of each group (i.e. "healthy" and "unhealthy") choose?

d. In the box below, enter the insurance company's expected economic profit from selling the desired policy (from the individual's perspective) to a member of each group.

Expected Profit from "Healthy":

Expected Profit from "Unhealthy":

A multinational company is currently producing goods in China to export to the US WHAT are the risks and strategies this company may be facing in order to deal with the uncertainties of the Trade War between the US and China?? (provide details regarding specific risks and strategies the company may use in order to cope with these risks)

Provide details and specify possible changes that the continuation of a Trade War may bring about to the Balance of Payments for both, China and the US and to the economic growth of these countries.