The American Institute of Certified Public or the AICP has developed seven principles governing audits. Which two of the seven principles specifically relate to audit reporting?

Two chemicals A and B are combined to form a chemical C. The rate, or velocity, of the reaction is proportional to the product of the instantaneous amounts of A and B not converted to chemical C. Initially, there are 40 grams of A and 50 grams of B, and for each gram of B, 2 grams of A is used. It is observed that 10 grams of C is formed in 10 minutes. How much (in grams) is formed in 20 minutes? (Round your answer to one decimal place.)

?? grams

One unit of A is made of two units of B, three units of C, and two units of D. B is composed of one unit of E and two units of F. C is made of two units of F and one unit of D. E is made of two units of D. Items A, C, D, and F have one-week lead times; B and E have lead times of two weeks. Lot-for-lot (L4L) lot sizing is used for Items A, B, C, and D; lots of size 60 and 200 are used for Items E and F, respectively. Item C has an on-hand (beginning) inventory of 10; D has an on-hand inventory of 50; all other items have zero beginning inventory. We are scheduled to receive 20 units of Item E in Week 2; there are no other scheduled receipts.

If 20 units of A are required in Week 8, use the low-level-coded bill-of-materials to find the necessary planned order releases for all components. (Leave no cells blank - be certain to enter "0" wherever required.)

Altobene, Inc.’s  R&D department recently conducted a test of three different brake systems to determine if there is a difference in the average stopping distance among the different systems.  In the test, 21 identical mid-sized cars were obtained from one of the major domestic carmakers.  Seven (7) cars were fitted with Brake A, seven (7) with Brake B, and seven (7) with Brake C. The number of feet required to bring the test cars to a full stop was recorded.

Which of the following is the appropriate null and alternative hypotheses about the stopping distance among the different systems?

H0: = =

HA: All of the population mean stopping distances are different from each other

H0:= =

HA: At least one population mean stopping distances is different from the others

H0:= =

HA: At least one population mean stopping distance is equal to another population mean stopping distance

Ho:= =  

Ha: Exactly one population mean stopping distance is greater than the other two population mean stopping distances

An ANOVA for the Stopping Distance Effect in Question 1 has been conducted with the partial results shown in the table below. Complete the ANOVA table.  

Source

Sum of Squares

Degrees of Freedom

Mean Square

F-Calculated

Between Groups (Brakes)

1314

Within Groups

XXXXXXXXXXXXX

Total

5299

20

What is the critical value of the test statistic for the brake stopping distance ANOVA if the hypothesis of interest is tested at the α = 0.01 level of significance?

6.013                                                  b.              5.092

4.938                                                  d.              3.127

Based on the ANOVA analysis, what conclusion would you make regarding the effect the braking system has on average stopping distance?

Reject HO, there is significant evidence to conclude there is a brake effect.

Do not reject HO, there is significant evidence to conclude there is a brake  effect.

Reject HO, there is insignificant evidence to conclude there is a brake effect.

Do not reject HO, there is insignificant evidence to conclude there is a brake effect.

Q1: Carrefour is expecting its new center to generate the following cash flows:

a. Determine the payback for this new center. (1 mark)

b. Determine the net present value using a cost of capital of 15 percent. Should the project be accepted? (1 mark)

Answer:

Q2. What is the EAC of two projects: project A, which costs $150 and is expected to last two years, and project B, which costs $190 and is expected to last three years? The cost of capital is 12%. (1 mark)

Answer:

Q3. A company pays annual dividends of $10.40 with no possibility of it changing in the next several years. If the firm’s stock is currently selling at $80, what is the required rate of return? (1 mark)

Answer:

Q4. Stag corp has a capital structure which is based on 50% common stock, 20% preferred stock and 30% debt. The cost of common stock is 14%, the cost of preferred stock is 8% and the pre-tax cost of debt is 10%. The firm's tax rate is 40%. (1 mark)

1. Calculate the WACC of the firm.
2. The firm is considering a project that is equally as risky as the firm's current operations. This project has initial costs of $280,000 and annual cash inflows of $66,000, $320,000, and $133,000 over the next three years, respectively. What is the net present value of this project ?

Assignment Questions

Q1: Carrefour is expecting its new center to generate the following cash flows:

a. Determine the payback for this new center. (1 mark)

b. Determine the net present value using a cost of capital of 15 percent. Should the project be accepted? (1 mark)

Q2. What is the EAC of two projects: project A, which costs $150 and is expected to last two years, and project B, which costs $190 and is expected to last three years? The cost of capital is 12%. (1 mark)

Answer:

Q3. A company pays annual dividends of $10.40 with no possibility of it changing in the next several years. If the firm’s stock is currently selling at $80, what is the required rate of return? (1 mark)

Answer:

Q4. Stag corp has a capital structure which is based on 50% common stock, 20% preferred stock and 30% debt. The cost of common stock is 14%, the cost of preferred stock is 8% and the pre-tax cost of debt is 10%. The firm's tax rate is 40%. (1 mark)

1. Calculate the WACC of the firm.
2. The firm is considering a project that is equally as risky as the firm's current operations. This project has initial costs of $280,000 and annual cash inflows of $66,000, $320,000, and $133,000 over the next three years, respectively. What is the net present value of this project ?

Q1: Carrefour is expecting its new center to generate the following cash flows:

a. Determine the payback for this new center. (1 mark)

b. Determine the net present value using a cost of capital of 15 percent. Should the project be accepted? (1 mark)

Answer:

Q2. What is the EAC of two projects: project A, which costs $150 and is expected to last two years, and project B, which costs $190 and is expected to last three years? The cost of capital is 12%. (1 mark)

Answer:

Q3. A company pays annual dividends of $10.40 with no possibility of it changing in the next several years. If the firm’s stock is currently selling at $80, what is the required rate of return? (1 mark)

Answer:

Q4. Stag corp has a capital structure which is based on 50% common stock, 20% preferred stock and 30% debt. The cost of common stock is 14%, the cost of preferred stock is 8% and the pre-tax cost of debt is 10%. The firm's tax rate is 40%. (1 mark)

1. Calculate the WACC of the firm.
2. The firm is considering a project that is equally as risky as the firm's current operations. This project has initial costs of $280,000 and annual cash inflows of $66,000, $320,000, and $133,000 over the next three years, respectively. What is the net present value of this project ?

develop a timeline of the evolution of business in canada over the last 50 years? for each era in the evolution of business list at least two improvements in the way people do business compared with the previous era?

Patrick owns a café in Melbourne, serving coffee and table-service meals. When the café is full, it can seat 50 people, and Patrick hires 2 chefs and 4 waiting (serving) staff. His objective is to maximise profits from the café. When the café operates normally, he makes zero economic profit.

When COVID-19 restrictions are imposed, Patrick is only able to serve take away coffee. Patrick lays off all of his staff, and runs the café by himself.

A)Explain in words how the effects of the COVID-19 restrictions will affect Partick’s ability to maximise profits. Draw and label diagrams that show Patrick’s likely profits before and during the COVID-19 restrictions.

B)Under what circumstances would Patrick continue to operate the café, and under what curcumstances would he close the business? Draw two diagrams to support your explanation.

C)Suppose COVID-19 restrictions are lifted, allowing Patrick to serve meals to 20 people. Draw a diagram and provide a written explanation of the likely effects on lifting restrictions on Patrick’s level of output, costs, and profits.

D)Suppose the Australian Government, in an attempt to encourage economic recovery from COVID-19, reduces the minimum wage. How might this affect the operation of Patrick’s business? Discuss the arguments for AND against reducing the minimum wage to encourage economic recovery