Question 2

Mark Limited is an investment company that purchases buildings and holds them for a, number
of purposes, such as resale, leasing and its own use.
On 1 January 2019, Mark Limited purchased an old building, Mark Towers, for N$300 000.
Conveyancer’s fees amounted to N$20 000
• This building is situated in an isolated part of Durban (South Africa) and there is no
development anywhere nearby. At the time of purchase, there had been no property
transactions in this area for many years and the possibility of leasing the building to tenants
was remote.
• During November 2019, development began of a new industrial park in the area. As a
result, the building was able to be leased to tenants involved in the development of the
industrial park. Due to the influx of people of people into the area, the directors decided to
paint one side of the buildings with the corporate logo of Mark Limited.
• This building has never had an air-conditioning system. After numerous complaints from
tenants about not being able to tolerate the Durban heat, Mark Limited decided to upgrade
the building by installing a ducted air-conditioning system on 1 December 2019.
The cost of installation included the following:
- Adjustments to the structure of the building 30 000
- Painting 50 000
- Air-conditioning system 200 000
- Installation costs 50 000
The ducted air-conditioning system has a 10 year life and a nil residual value
• As a result of the new industrial park, there was suddenly a demand for properties in the
area. As a result, the fair value of Mark Towers was able to be determined on 31 December
2019 at N$420 000. Mark Limited would like to measure this investment property at fair
value now that fair values have become available.
• The building has a 10 year useful life and an estimated residual value of N$50 000
Mark Limited also holds other investment property, which is measured under the fair value model.
The fair value of this other investment property is as follows:
• 1 January 2019 N$ 1 000 000
• 31 December 2019 N$ 1 250 000

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company’s costs:

For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.50 per car washed.

Required:

Prepare the company’s flexible budget for August.

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,500 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.60 per car washed.

Required:

Prepare the company’s planning budget for August.

Candice operates an ice cream parlor in a small town in Tristate area. She knows that this a monopolistically competitive business because other producers in the area supply different flavors of ice cream. Candice runs her business as efficiently as possible, to maximize her profits. This year, Candice charges $5 per ice cream and experiences marginal cost of $3 and average total cost of $4 per ice cream at the optimal level of output. Does Candice have profits in short term (this year)? Can you predict how ice cream market conditions for Candice will be changing in the near future? What will be Candice's profit in the long-run?

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,400 $ 0.08 Maintenance $ 0.25 Wages and salaries $ 4,400 $ 0.30 Depreciation $ 8,100 Rent $ 2,000 Administrative expenses $ 1,500 $ 0.03 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 per car washed.

Required: Prepare the company’s planning budget for August.

The owner of a movie theater company would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

(a)

Use α = 0.01 to test the hypotheses

for the model

y = β₀ + β₁x₁ + β₂x₂ + ε,

where

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. There is insufficient evidence to conclude that there is a significant relationship among the variables

Do not reject H₀. There is sufficient evidence to conclude that there is a significant relationship among the variables.    

Do not reject H₀. There is insufficient evidence to conclude that there is a significant relationship among the variables.

Reject H₀. There is sufficient evidence to conclude that there is a significant relationship among the variables.

(b)

Use α = 0.05 to test the significance of

β₁.

State the null and alternative hypotheses.

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. There is insufficient evidence to conclude that β₁ is significant.

Reject H₀. There is sufficient evidence to conclude that β₁ is significant.  

Do not reject H₀. There is insufficient evidence to conclude that β₁ is significant.

Do not reject H₀. There is sufficient evidence to conclude that β₁ is significant.

Should x₁ be dropped from the model? Yes or No?

(c)

Use α = 0.05 to test the significance of

β₂.

State the null and alternative hypotheses.

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. There is insufficient evidence to conclude that β₂ is significant.

Reject H₀. There is sufficient evidence to conclude that β₂ is significant.    

Reject H₀. There is insufficient evidence to conclude that β₂ is significant.

Do not reject H₀. There is sufficient evidence to conclude that β₂ is significant.

Should x₂ be dropped from the model?Yes or No ?  

Given numRows and numColumns, print a list of all seats in a theater. Rows are numbered, columns lettered, as in 1A or 3E. Print a space after each seat, including after the last. Use separate print statements to print the row and column. Ex: numRows = 2 and numColumns = 3 prints:

1A 1B 1C 2A 2B 2C

import java.util.Scanner;
public class NestedLoops {
   public static void main (String [] args) {
      Scanner scnr = new Scanner(System.in);
      int numRows;
      int numColumns;
      int currentRow;
      int currentColumn;
      char currentColumnLetter;

      numRows = scnr.nextInt();
      numColumns = scnr.nextInt();

      /* Your solution goes here */

      System.out.println("");
   }
}

Tan Rocks, an outdoor theater, has suspended their dividend to conserve capital for the rest of their fiscal year (May 1 to May 1) since they do not anticipate being open this summer. Management is assuming the Covid19 effects will continue for each of the next two seasons as well before returning to normal. As such they estimate next year’s dividend to be $1 per share (2021) and it will increase to $1.50 a share the following year (2022). The dividend will return to $2.50 a share in 2023. If the dividend’s historical growth of 3 percent a year returns to normal after 2023 and the required rate of return on the stock of Tan Rocks is 10 percent, what should be their current stock value be based on these assumptions and projections?

Please explain work clearly, thanks