Bolus Computer Parts Ltd. is setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 56,500 units:

Bolus Computer Parts’ management requests that the total cost per unit be used in the cost-plus pricing of products. On this particular product, management also directs that the target price be set to provide a 20% return on investment on invested assets of $2,260,000.

1)Calculate the markup percentage and target selling price that will allow Bolus Computer Parts to earn its desired ROI of 20% on this new component. (Round mark-up percentage to 2 decimal places, e.g. 15.25% and target selling price to 0 decimal places, e.g. 125.)

2)Assuming that the volume is 45,200 units, calculate the markup percentage and target selling price that will allow Bolus Computer Parts to earn its desired ROI of 20% on this new component. (Round answers to 2 decimal places, e.g. 15.25% or 15.25.)

Larry’s Building Supplies (LBS) is a local hardware store. LBS uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a. Sold merchandise for cash (cost of merchandise $313,350). $ 665,000

b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $4,100). 6,300

c. Sold merchandise (costing $8,280) to a customer on account with terms 2/10, n/30. 13,800

d. Collected half of the balance owed by the customer in (c) within the discount period. 6,762

e. Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid. 2,050

A current liability is a short-term obligation that is normally expected to be settled within one year. For each of the following events and transactions that occurred in November 2017, indicate the title of the current liability account that is affected and the amount that would be reported on a statement of financial position prepared on December 31, 2017. If an event does not result in a current liability, explain why.

a) A customer purchased a ticket from WestJet Airlines For $ 470 cash to travel in January 2018. Answer from WestJet's standpoint.

b) Hall Construction Company signs a contract with a customer for the construction of a new $ 500,000 warehouse. At the signing, Hall receives a cheque for $ 50,000 as a deposit on the future construction. Answer from Hall's standpoint.

c) On November 1, 2017, a bank lends $ 10,000 to a company. The loan carries a 5 percent annual interest rate, and the principal and interest are due in a lump sum on October 31, 2018. Answer from the company's standpoint.

d) A popular ski magazine company receives a total of $ 17,800 from subscribers on December 31, the last day of its fiscal year. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint.

e) On November 20, the campus bookstore receives 900 accounting textbooks at a cost of $ 70 each. The terms indicate that payment is due within 30 days of delivery. Answer from the bookstore's standpoint.

f) Ziegler Company, a farm equipment company, receives its phone bill at the end of January 2018 for $ 2,300 for January calls. The bill has not been paid to date.

Read the following hypothetical and prepare a 500 word minimum written response to the questions. Your response must include the relevant legal principles that are the basis for your answer:

I do not have the information of the agreement terms

Hillman Brothers Construction, Inc. agreed to build a home for Maggie Sykes. The total contract price for the home is $325,000. The home is complete in all respects except for the fact that shutters have not been installed on the windows. The contract between the parties stipulated that Hillman Brothers would install shutters on each window.
The day before the “closing” on the home’s purchase, Maggie noticed that Hillman Brothers had not installed the shutters. She then called the owner, president and chief executive officer of the company, Andrew Hillman, and a heated argument between the two ensued (Maggie is well-known for her “anger management” issues, and she becomes especially angry when her requests as a buyer are not met.) The conversation ended with Andrew proclaiming that “Hades would freeze over” before he had his construction crew install the shutters, and with Maggie asserting that the “deal is off.” Hillman Brothers expects to be paid the full contract price, $325,000, for the home, based on the fact that “irreconcilable differences” between the parties make it impossible for the company to install the shutters, and since Maggie’s incorrigible personality caused the impassible chasm between them. For total “parts and labor,” it would cost $5,750 to install the shutters.
Is Maggie Sykes obligated to purchase the house? If so, is she obligated to pay the full contract price of $325,000? Is Hillman Brothers Construction, Inc. required to install the shutters?

After reviewing the following calculation, provide a brief analysis of each of the ratios. Also provide a brief evaluation regarding the company’s performance as it relates to the four categories listed above, plus the DuPont Equation. Finally, discuss how these ratios will help make appropriate financial decisions as they relate to the role as a financial manager, and also assist in achieving the firm’s financial management goals.

1. Profitability Ratios
   1. Gross Margin Percentage-

Gross Margin Percentage = Net Income/Sales

For 2018: Gross Profit is 58.26B, Sales 130.86B

Gross Margin Percentage = 58.26B/130.86B

= 0.44520861989

For 2017: Gross Profit 57.52B, Sales 126.03B

Gross Margin Percentage = 57.52B/126.03B

= 0.45639927001

2. EBIT Margin Percentage

EBIT Margin Percentage = EBIT/Sales

For 2018: EBIT Margin Percentage = 2.88B/130.86B

EBIT Margin Percentage =: 2.88B/130.86B

= 0.02200825309

For 2017: EBIT Margin Percentage = 23.45B/126.03B

EBIT Margin Percentage = 23.45B/126.03B

= 0.18606680949

2. Resource Management Ratios:
   1. Age of Inventory – Measure the Firm’s management of its inventory

Age of Inventory (Days’ of Inventory) = 365/Inventory Turnover

Inventory Turnover = COGS/Inventory

For 2018: COGS = 72.61B, Inventory = 1.34B

Age of Inventory = 365days/Inventory Turnover

Inventory Turnover = COGS/Inventory

= 54.1865671642

365/54.1865671642

= 6.73B

For 2017: COGS=68.51B, Inventory 1.03B

=68.51/1.03

=66.5145631068

365/66.5145631068

=5.48752007006

2. Age of Accounts Receivable

Age of Accounts Receivables = 365days / AR Turnover

AR Turnover = Sales / Receivables

For 2018: Sales=130.86B, Receivables=25.86B

130.86/25.86=

AR Turnover= 5.06032482599

365/ 5.06032482599

= 72.1297569921

For 2017: Sales=126.03B, Receivables=23.49B

126.03/23.49=

5.36526181354

365/ 5.36526181354

=68.0302308974

3. Age of Accounts Payable

Age of Accounts Payable = 365 / AP Turnover

AP Turnover = Purchases / Payables

For 2018: Cost of Goods Sold- 72.61B

For 2017: Cost of Goods Sold- 68.51B

Inventory Purchases = (Ending Inventory – Beginning Inventory) + Cost of Goods Sold

For 2017: (1.03B – 1.2B) + 68.51

=68.34B

68.34B/7.06B

AP Turnover= 9.67988668555

365/9.67988668555

Age of AP = 37.70705297

For 2018: (1.03B-1.34B) + 72.61B

=72.3B/7.23B

=10B

365/10

=36.5

3. Liquidity Ratio:
   1. Current Ratio
4. Leverage Ratios
   1. Debt-to-Assets Ratio
   2. Debt-to-Equity Ratio
   3. Interest Coverage

In addition, you have decided to evaluate the Return on Equity (ROE) of the company by calculating the DuPont Ratio, including the Profit Margin, Asset Turnover, and Financial Leverage Ratios.

Year 2017:

Return on Equity (DuPont Ratio) = Profit Margin x Total Asset Turnover x Financial Leverage

Profit Margin = Net Income / Net Sales

=30.1B/126.03B

= 0.238832024121241

Total Asset Turnover = Net Sales / Average Total Assets

Average total Assets= 2016 Total Assets + 2017 Total Assets / 2

(244.18B+257.14B) /2

=250.66

TAT= 126.03/250.66

TAT= 0.5027926274634964

Financial Leverage = Total Assets / Total Equity

257.14B/44.69B

= 5.75385992392034

Profit Margin x Total Asset Turnover x Financial Leverage

0.238832024121241 x 0.5027926274634964 x 5.75385992392034

Return on Equity (DuPont Ratio) =0.6909406515199963

Date Expenditure Spent The Amount of Expenditure

February 15 $90,000

April 1 $125,000

June 30 $200,000

October 1 $300,000

November 15 $585,000

Liabilities Amount Annual Interest Rate

Bond A $678,000 7.1%

Loan 1 $650,000 6%

Loan 2 $1,000,000 7%

Answer the following questions based on the information above:

Capitalizing interest on the new factory:

1) During the year, Frosty Co. paid all of the interest accrued on Bond A and Loan 1, but only $50,000 of the interest accrued on Loan 2. Using one journal entry, summarize how Frosty originally recorded the accrued interest on all three long-term debts.

2) Assuming John and Elsa are right that the new loan meets the standards for capitalizing interest, calculate avoidable interest.

3) What correcting entries would need to be made to properly record interest on Frosty Co.'s construction project if John and Elsa are right?

4) What would be the effect of interest adjustments on net income, assuming that Frosty Co.’s income tax rate is 30 percent?

5) Obtain the relevant authoritative literature on accounting interest capitalization using the FASB’s Codification Research System. How would you help Simon, John and Elsa to dissolve their disagreement? In other words, whose argument was right? Please make sure to cite FASB Accounting Standard Codification to support your answer. Be specific about the citation number you cite from (e.g., FASB ASC 735-10-25-1).

* construction goes on for the entire year so use 12 monthns in the fractions.

* Use weighted average percentage for interst capilaized.

Suppose you put positive charge on an insulated metal box (actually, remove electrons from the box). Since it is a conductor, the charges will rearrange.
- The greatest accumulation of charges will be

- The electric field inside the box will be

2. Suppose identical metal spheres are insulated from their surroundings and touching each other. A positive charge is brought near, but not touching sphere A, and held near to sphere A as the two spheres are separated. Now, the positive charge is removed. What charge will be left on sphere A and sphere B, respectively?

Washington County’s Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board’s decision appear below.

In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $140,000. The old snowplow could be sold now for $13,500. The new, larger plow will cost $10,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $92,000 per year in additional tax revenue for the county.

In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 18 percent.

1. Prepare a net-present-value analysis of the proposed long runway.

2. Should the County Board of Representatives approve the runway considering NPV?(Yes or No)

3-a. Which of the data used in the analysis are likely to be most uncertain?

(Select which of the following statements (is) are true by selecting an "X".)

3-b. Which of the data used in the analysis are likely to be least uncertain?

(Select which of the following statements (is) are true by selecting an "X".)

Eight months ago, you sold short 1,000 shares of ABC Company at $30 per share. The initial margin requirement is 50% and maintenance margin is 30%. Ignoring borrowing cost of the shares,

1. a) calculate the price level that you receive margin call.

2. b) calculate the (i) holding period percentage return and (ii) annual percentage return (APR) of your margin position if you close the margin position at $28 today, immediately after dividend of $1 per share was paid by the Company.

The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $88.50. The variable cost per unit is $27.25, Poseidon Swim has average fixed costs per year of $5,216. Assume that current level of sales is 305 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by-3.9 percent? (You should calculate the degree of operating leverage first). (Write the percentage sign in the "units" box). Round the answer to two decimal places