Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows:

The company is currently financed with 50 percent debt and 50 percent equity (common stock, par value of $10). In order to expand the facilities, Mr. Delsing estimates a need for $3.4 million in additional financing. His investment banker has laid out three plans for him to consider:

1. Sell $3.4 million of debt at 10 percent.
2. Sell $3.4 million of common stock at $20 per share.
3. Sell $1.70 million of debt at 9 percent and $1.70 million of common stock at $25 per share.

Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2,440,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.70 million per year for the next five years.
Delsing is interested in a thorough analysis of his expansion plans and methods of financing.He would like you to analyze the following:

a. The break-even point for operating expenses before and after expansion (in sales dollars). (Enter your answers in dollars not in millions, i.e, $1,234,567.)
  

b. The degree of operating leverage before and after expansion. Assume sales of $6.4 million before expansion and $7.4 million after expansion. Use the formula: DOL = (S − TVC) / (S − TVC − FC). (Round your answers to 2 decimal places.)
  

c-1. The degree of financial leverage before expansion. (Round your answers to 2 decimal places.)
  

c-2. The degree of financial leverage for all three methods after expansion. Assume sales of $7.4 million for this question. (Round your answers to 2 decimal places.)
  

d. Compute EPS under all three methods of financing the expansion at $7.4 million in sales (first year) and $10.3 million in sales (last year). (Round your answers to 2 decimal places.)
  

Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows:

The company is currently financed with 50 percent debt and 50 percent equity (common stock, par value of $10). In order to expand the facilities, Mr. Delsing estimates a need for $2.3 million in additional financing. His investment banker has laid out three plans for him to consider:

1. Sell $2.3 million of debt at 11 percent.
2. Sell $2.3 million of common stock at $25 per share.
3. Sell $1.15 million of debt at 10 percent and $1.15 million of common stock at $40 per share.

Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2,330,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.15 million per year for the next five years.
Delsing is interested in a thorough analysis of his expansion plans and methods of financing.He would like you to analyze the following:

a. The break-even point for operating expenses before and after expansion (in sales dollars). (Enter your answers in dollars not in millions, i.e, $1,234,567.)

b. The degree of operating leverage before and after expansion. Assume sales of $5.3 million before expansion and $6.3 million after expansion. Use the formula: DOL = (S − TVC) / (S − TVC − FC). (Round your answers to 2 decimal places.)

c-1. The degree of financial leverage before expansion. (Round your answers to 2 decimal places.)

Degree of financial leverage____?

c-2. The degree of financial leverage for all three methods after expansion. Assume sales of $6.3 million for this question. (Round your answers to 2 decimal places.)

d. Compute EPS under all three methods of financing the expansion at $6.3 million in sales (first year) and $10.3 million in sales (last year). (Round your answers to 2 decimal places.)

Supply proofs for the following miscellaneous propositions from the course in a metric space context:

(1) A compact set (you may use either definition) is closed and bounded.

(2) An epsilon-neighborhood is an open set.

(3) A set is open if and only if its complement is closed.

These are Heat engine questions:

1. what do you expect to happen to the pressure and volume of the closed system of air that has a 200g mass on top of it when you heat up the air inside the system? explain you're reasoning.

2. what do you expect to happen to the pressure and volume of the closed system of air that is still heated as you remove the 200g Masson top of the piston? Explain you're reasoning.

3. do you expect a closed system air to return to the original pressure and volume when the heat is removed? explain your reasoning.

A basic electrical circuit consists of a battery, a light bulb, a switch and wires connecting them. As soon as the switch is closed, even the light bulb is one mile away, the light bulb will be on IMMEDIATELY.  This means that the electrical current (made of moving electrons) starts to run everywhere in the wire as soon as the switch is closed.

Explain:

a) the origin of these free moving electrons (where do they come from),

b) the force(s) that pushes free electrons moving towards the same direction (to form electrical current),

c) the average speed of these free electron (when the circuit is closed).

Problem 4. Let P be the orthogonal projection associated with a closed subspace S in a Hilbert space H, that is P is a linear operator such that

P(f) = f if f ∈ S and P(f) = 0 if f ∈ S^⊥.

(a) Show that P² = P and P^∗ = P.

(b) Conversely, if P is any bounded operator satisfying P² = P and P^∗ = P, prove that P is the orthogonal projection for some closed subspace of H.

(c) Using P prove that if S is a closed subspace of a separable Hilbert space, then S is also a separable Hilbert space.

Consider a Rankine cycle with an ideal intermediate steam pickup, one of which is open and the other is closed feed water heaters. The steam enters the turbine at 12.5 MPa pressure and 550 degrees Celsius temperature and expands to 10 kPa condenser pressure. The steam separated from the turbine at 0.8 MPa pressure is sent to the closed feed water heater and the steam separated at 0.3 MPa pressure is sent to the open feed water heater. The feed water is heated to the condensing temperature of the steam leaving the turbine in the closed heater. The steam comes out of the closed heater as a saturated liquid, then the pressure is lowered into a valve and sent to the open feed water heater. Show the cycle in a T-s diagram with saturated liquid and saturated vapor curves.

a)

Water flow that must pass through the boiler for the production of 250 MW net power,

b)

Calculate the thermal efficiency of the cycle.

q1:In an open economy, a reduction in domestic demand has:

Select one:

a. a larger effect on output than in a closed economy and a positive effect on the trade balance.

b. a smaller effect on output than in a closed economy and a positive effect on the trade balance.

c. a smaller effect on output than in a closed economy and a negative effect on the trade balance.

d. a smaller effect on output than in a closed economy and a no effect on the trade balance.

e. a larger effect on output than in a closed economy and a negative effect on the trade balance.

Q2:

Policy makers can become concerned if the unemployment rate is too low because:

Select one:

a. output will increase.

b. stock prices will fall.

c. an exchange rate crisis might occur.

d. output will decrease.

e. inflation might increase.

Q3:

When the unemployment rate rises:

Select one:

a. the number of discouraged workers tends to fall.

b. the number of employed workers tends to rise.

c. the number of discouraged workers tends to remain constant.

d. the number of employed workers tends to remain constant.

e. the labour force participation rate tends to fall.

You have been assigned to examine the financial statements of ABC corp. for the year ended December 31, 2019, as prepared following IFRS. You discover the following situations:

1. Physical inventory count on Dec31, 2018, improperly excluded merchandise costing $13,000 that had been temporarily stored in a public warehouse. ABC corp uses periodic inventory system
2. Physical inventory count on Dec31,2019, improperly included merchandise with a cost of $26,000 that had been recorded as a sale on Dec27, 2019, and was being held for the customer to pick up on Jan 4,2020
3. Depreciation of $6,700 for 2018 on delivery vehicles was not recorded
4. A collection of $4,600 on account from customer received on Dec 31,2019, was not recorded until Jan 2, 2020
5. A large piece of equipment was purchased on Jan 1, 2019 for $20,500 and was charged in error to repairs expense. The equipment estimated useful life 8 years and no residual value. ABC corp uses straight-line depreciation method for this type of equipment.
6. On Dec 31, 2018 accrued wages of $1,500 were not recognized and not recorded
7. A 3 years insurance premium paid on July 1,2018 for policy expires on June 30,2021, amount of $12,000 was charged to insurance expense
8. The Accountant recorded a purchase of supplies for $9,000 in 2019 that applied to 2020.
9. At the beginning of 2017, the company purchased equipment for $225,000(residual value $22,500) and had useful life 6 years. The accountant used straight line amortization, but failed to deduct the residual value in calculation the depreciation base for the past and current years.
10. A cheque for $44,000 was paid in January 1, 2019 to cover the rent for 2019 and 2020; the entire amount was debited to rental expense.

Instructions:

Prepare the required Journal entries (if any) to correct ABC corp's accounts, assuming each transaction is independent and assume 2019 books are not closed.

At the end of its first year of operations on December 31, 2020, Carla Vista Company’s accounts show the following.

The capital balance represents each partner’s initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners’ capital accounts.

To record the division of net income for the year 2020 under each of the following independent assumptions.

(a)

Prepare a schedule showing the division of net income under assumption (3) above. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).)