Kenton and Denton Universities offer executive training courses to corporate clients. Kenton pays its instructors $5,000 per course taught. Denton pays its instructors $250 per student enrolled in the class. Both universities charge executives a $450 tuition fee per course attended.

Required

A. Prepare income statements for Kenton and Denton, assuming that 20 students attend a course.

B. Kenton University embarks on a strategy to entice students from Denton University by lowering its tuition to $240 per course. Prepare an income statement for Kenton assuming that the university is successful and enrolls 40 students in its course.

C. Denton University embarks on a strategy to entice students from Kenton University by lowering its tuition to $240 per course. Prepare an income statement for Denton, assuming that the university is successful and enrolls 40 students in its course.

I NEED IT ANSWERED IN THIS FORMAT, FILL IN BLANKS

Problem 11-28

a.      N = Number of units to break-even point

Sales − Variable cost − Fixed cost = Desired Profit

          (Sales price x N) − (Variable cost per unit x N) = Fixed cost + Desired Profit

(Contribution margin per unit x N) = Fixed cost + Desired Profit

N = (Fixed cost + Desired Profit) ÷ Contribution margin per unit

N = ($               + $           ) ÷ [$       - ($     + $       )] =          Units

          Break-even point dollars =        Units x $        selling price per unit = $

b.      N = Number of units to break-even point

          N = (Fixed cost + Desired Profit) ÷ Contribution margin per unit

          N = ($            + $            ) ÷ [$        – ($       + $      )]

          N =          Units

          Break-even point dollars =    Units x $            selling price per unit = $

1/ At which location below would you most expect to find a year-round desert?

2/ Humid subtropical climates are found principally _____ of continents, roughly between 25° and 40° latitude.

3/ Because of the dry summers of Mediterranean climates, the land only supports growing _____.

4/ The coldest areas in the Northern Hemisphere are found in _____.

1. Given the following information:

1. Produce a cash flow statement for the company.                                                
2. What does the statement tell us about the financial state of this company? Explain.

Financial Management

Question 1

John met his insurance agent to discuss the purchase of an insurance plan to fund his 8 year-old daughter's university education in 11 years' time. The payout from the insurance company is as follows:

* Receive $30,000 at the begining of each year for 4 years with the first receipt starting 11 years from today.

The insurance company had 3 payment proposals:

Proposal 1:

* Pay $35,000 today

Proposal 2:

* Beginning 2 years from today, pay $8,000 each year for the next 8 years.

Proposal 3:

* Beginning 2 years from today, make payments each year for the next 8 years. The first payment is $7,000 and the amount increases by 5% each year.

(a) Calculate the present value of each proposal. Use a 10% discount rate. (7m)

(b) Which proposal should John choose? Explain. (5m)

(c) If the discount rate is not given to you, what would be an appropriate discount rate to use? (3m)

Review the organization and financials of a chosen university. Describe some performance measures that might be used in assessing whether this university operates effectively. Using these measurements, how do you think the university is doing??

Prepare an income statement and a statement of retained earnings for the month of May (note space provided on two pages) for Shelby, Inc. Also prepare a balance sheet as of May 31, 2017. The financial transactions of Shelby, Inc. for May, their first month of operations, are:

On May 1, 2017, Shelby, Inc. issued common stock in exchange for $20,000 cash from a stockholder, Nan.

On May 3, the company borrowed $5,100 from a creditor and executed a note payable with the principal and interest to be due in one year.

On May 7, the company purchased $15,000 of equipment with cash.

On May 8, Shelby, Inc. rendered service to a client and earned $3,000 in cash.

On May 12, the company incurred a repair expense of $1,800 and promised to pay the repair contractor, Greyson, the following month.

On May 18, the company rendered service to a new client, Niki, in the amount of $8,000 on account. Niki promises to pay the following month.

At the end of May, Shelby, Inc. distributed cash dividends to BA211 stockholders for $1,200.

Ace Property Company is a subsidiary of Beta Investments, Inc. Ace op­erates a hazardous waste disposal site. ChemiCo is one of many parties who generate waste disposed of at the site. Ace borrows money from Delta Bank, which takes over the site when Ace goes bankrupt. The bank sells the site to Eagle Company. The Environmental Protection Agency discov­ers a leak at the site. Can any of these private parties be forced to pay for the cleanup? If so, who?

Students taking the GMAT were asked about their undergraduate major and pursuit of their MBA as full time or part time student,

If a student taking the GMAT is randomly selected from this distribution find:

1. The probability that their undergraduate major was business.
2. The probability that their undergraduate major was not business.
3. The probability that their undergraduate major was business and they are a part time student.
4. The probability that their undergraduate major was business or they are a part time student.
5. The probability that they are in business given that they are a part time student.
6. The probability that they are a part time student given that they are in business.

It appears that George is running a profitable business. George is aware you are in an MBA Managerial Finance class and comes to you for advice on his working capital practices. More specifically George asks you to do the following:

View the following video: http://searchcenter.intelecomonline.net/playClipDirect.aspx?id=4870EEC7664070BB9D6744FDA7325EE44F45E0E47862343D60FAA8E3325D1A83C46D5C6FAB3D01A758FA30144214BB3D

Describe his working capital practices, including his methods of capital budgeting analysis techniques.

Analyze the potential pitfalls in his capital budgeting practices that George should be aware of.

Develop a simple statement of cash flows for George’s Trains using any information gleaned from the video. What areas of improvement do you recommend and why?