Early in its fiscal year ending December 31, 2018, San Antonio
Outfitters finalized plans to expand operations. The first stage
was completed on March 28 with the purchase of a tract of land on
the outskirts of the city. The land and existing building were
purchased for $1,080,000. San Antonio paid $340,000 and signed a
noninterest-bearing note requiring the company to pay the remaining
$740,000 on March 28, 2020. An interest rate of 6% properly
reflects the time value of money for this type of loan agreement.
Title search, insurance, and other closing costs totaling $34,000
were paid at closing.
During April, the old building was demolished at a cost of $84,000,
and an additional $64,000 was paid to clear and grade the land.
Construction of a new building began on May 1 and was completed on
October 29. Construction expenditures were as follows: (FV of $1,
PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
| May 1 | $ | 3,300,000 | |
| July 30 | 2,200,000 | ||
| September 1 | 1,740,000 | ||
| October 1 | 2,640,000 | ||
San Antonio borrowed $5,500,000 at 6% on May 1 to help finance
construction. This loan, plus interest, will be paid in 2019. The
company also had the following debt outstanding throughout
2018:
| $3,400,000, 8% long-term note payable |
| $5,400,000, 5% long-term bonds payable |
In November, the company purchased 10 identical pieces of equipment
and office furniture and fixtures for a lump-sum price of $740,000.
The fair values of the equipment and the furniture and fixtures
were $546,000 and $294,000, respectively. In December, San Antonio
paid a contractor $355,000 for the construction of parking lots and
for landscaping.
Required:
1. Determine the initial values of the various
assets that San Antonio acquired or constructed during 2018. The
company uses the specific interest method to determine the amount
of interest capitalized on the building construction.
Early in its fiscal year ending December 31, 2018, San Antonio
Outfitters finalized plans to expand operations. The first stage
was completed on March 28 with the purchase of a tract of land on
the outskirts of the city. The land and existing building were
purchased for $1,080,000. San Antonio paid $340,000 and signed a
noninterest-bearing note requiring the company to pay the remaining
$740,000 on March 28, 2020. An interest rate of 6% properly
reflects the time value of money for this type of loan agreement.
Title search, insurance, and other closing costs totaling $34,000
were paid at closing.
During April, the old building was demolished at a cost of $84,000,
and an additional $64,000 was paid to clear and grade the land.
Construction of a new building began on May 1 and was completed on
October 29. Construction expenditures were as follows: (FV of $1,
PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
| May 1 | $ | 3,300,000 | |
| July 30 | 2,200,000 | ||
| September 1 | 1,740,000 | ||
| October 1 | 2,640,000 | ||
San Antonio borrowed $5,500,000 at 6% on May 1 to help finance
construction. This loan, plus interest, will be paid in 2019. The
company also had the following debt outstanding throughout
2018:
| $3,400,000, 8% long-term note payable |
| $5,400,000, 5% long-term bonds payable |
In November, the company purchased 10 identical pieces of equipment
and office furniture and fixtures for a lump-sum price of $740,000.
The fair values of the equipment and the furniture and fixtures
were $546,000 and $294,000, respectively. In December, San Antonio
paid a contractor $355,000 for the construction of parking lots and
for landscaping.
Required:
1. Determine the initial values of the various
assets that San Antonio acquired or constructed during 2018. The
company uses the specific interest method to determine the amount
of interest capitalized on the building construction.
| Assets | Initial Value |
| Land | |
| Land Improvments | |
| Building | |
| Equipment | |
| Furniture and Fixtures |
2. How much interest expense will San Antonio report in its 2018 income statement?
| Interest Expense |
In: Accounting
Your consulting services have been requested by the CEO of a large international corporation. The CEO is concerned about ethical issues surrounding corporate governance from a global perspective. A common example may be where a corporate board of directors breached one or more duties, such as the duty of loyalty, to its shareholders—although there are many other areas where business ethics are at the center of a case that originated at the governance level of an organization.
You are asked to conduct research and analyze a case involving ethical issues surrounding corporate governance from a global position. Briefly describe the facts of the case, the legal issue, and the decision of the court. In addition, discuss the effect of the case from a global business perspective, on society in general, and how the corporation could prevent such issues in the future.
In: Accounting
In 2019, the University of Alabama (UA) homecoming event took
place in Tuscaloosa from July 21 until July 24, 2019. People at the
event included UA Alumni, their families, and friends who did not
attend UA. Between August 3 and August 15, some of those who had
been present at the event became ill with a type of pneumonia. No
one attending the event had the disease before July 21, 2019. The
number of UA alumni and non-Alumni who acquired the illness between
August 3 and August 15, 2019, is shown in the table
below.
Had pneumonia
Yes No
Non-UA Alumni 50 750
UA Alumni 300 900
1) Compute the cumulative incidence of pneumonia among UA Alumni
Interpret the result
2) Compute the cumulative incidence of pneumonia among Non- Alumni
Interpret the result
3) Calculate the cumulative incidence ratio of pneumonia among UA Alumni compared to Non- Alumni
Interpret the result
4) Calculate the cumulative incidence difference of pneumonia among UA Alumni compared to Non- Alumni. (2pts)
Interpret the result
In: Statistics and Probability
Hoping to learn what issues may resonate with voters in the coming election, the campaign director for a mayoral candidate selects one block at random from each of the city’s election districts. Staff members go there and interview all the residents they can find.
What is the population?
What is the parameter of interest?
What is the sampling frame?
What is the sample?
What is the sampling method?
Any bias present?
In: Statistics and Probability
You are asked to do an analysis of a company. You may choose the company yourself. It can be a well-established company (such as Amazon) or a small to medium sized company. Feel free to choose companies you have worked in or are a customer of….you will have to do some secondary research as part of your analysis.
Please address the following points in your analysis:
In: Economics
Assume that a business was started on January 1, 2003 when it
acquired $60,000 cash from its owner(s). During 2003 the
company generated $29,000 of cash services revenue,
incurred $19,000 of cash expenses, and distributed $4,000
cash to the owner(s).
•
Prepare a statement of changes in equity for this partnership:
–
Carl Link and Bill Morgan established the business as a
partnership. Link contributed 60% of the capital, Morgan
40%. The partners agreed to share profits and withdrawals
in proportion to their capital investments
In: Accounting
analyze the unemployment rate and inflation from 2000 - 2010 in the US.
discuss the interest rate fluctuations from 2000 - 2010 in the US
In: Economics
cenario You are the global marketing vice president at Dyson. You have been asked to attend a meeting with James Dyson, the company's founder. Dyson's CEO and the head of Dyson's New Product Innovation department will also be in attendance. "Thanks for meeting with me today," James says. "Market intelligence has shown that our major competitors—Hoover, Shark, and Bissell—are all developing new cordless vacuum cleaners with a longer battery life than what's currently available." James Dyson looks to you: "I need you to participate in a new cross-functional product development team that will research the feasibility of creating a cordless vacuum cleaner that works for one hour on a single charge. We also need to know if there's even a market for this type of vacuum," he says. "We envision that this new vacuum will be used primarily in the home, but keep in mind, we want to be able to adapt it easily and cheaply for light commercial use. One way of doing this is by using swappable battery packs." "Have an actionable marketing plan ready for me in three weeks," James says. You know that to give the CEO the most thorough report, you'll need to conduct an internal analysis of Dyson and an environmental scan for the new vacuum cleaner. You'll need to have a detailed plan for identifying marketing opportunities, and you'll need to research the home and commercial vacuum cleaner industry, market trends, and Dyson's major global competition.
Your financial analysis should include average unit cost, average unit price, number of units per batch, any outsourcing costs, a breakeven analysis, a sales forecast, and an expense forecast (including marketing and sales expenses). In addition, explain your schedule for implementation, the controls you intend to put in place, and how you intend to proceed (i.e., contingency plans) when your benchmarks are not met.
Milestone 6: Submit a one page document explaining your financial analysis and implementation for the startup of a new Dyson vacuum cleaner.
In: Accounting
Company Deemed, Inc., a US-based company, has sold its products to a Chinese Company. At the spot rate of 1 USD = 7 CNY prevailing today the invoice value is 1 million USD. The company will pay in CNY in 90 days. The 90-day forward rate is 1USD = 7.1 CNY. The borrowing rates in US and China are 2% and 8%, respectively. The company’s cost of capital is 10%. The company has to decide between forward market hedge and money market hedge. Do the analysis and make a recommendation.
Please show EXCEL formulas as well.
In: Finance
Why are you looking to pursue an MBA or MS program at this point in your life and what do you see yourself doing professionally upon graduation? What key actions have you taken up to this point to prepare you for this career? 500 words
In: Accounting