Cash Budget

Janet Wooster owns a retail store that sells new and used sporting equipment. Janet has requested a cash budget for October. After examining the records of the company, you find the following:

1. Cash balance on October 1 is $1,110.
2. Actual sales for August and September are as follows:

   		August		September
   Cash sales		$6,000		$4,500
   Credit sales		59,000		62,000
   Total sales		$65,000		$66,500

3. Credit sales are collected over a three-month period: 40 percent in the month of sale, 36 percent in the next month, and 22 percent in the second month after the sale. The remaining sales are uncollectible.
4. Inventory purchases average 70 percent of a month’s total sales. Of those purchases, 45 percent are paid for in the month of purchase. The remaining 55 percent are paid for in the following month.
5. Salaries and wages total $3,850 per month.
6. Rent is $3,150 per month.
7. Taxes to be paid in October are $1,635.
8. Janet usually withdraws $3,500 each month as her salary.
9. Advertising is $1,500 per month.
10. Other operating expenses total $3,800 per month.
11. Internet and telephone fees are $320 per month.

Janet tells you that she expects cash sales of $5,000 and credit sales of $64,000 for October. She likes to have $3,000 on hand at the end of the month and is concerned about the potential October ending balance.

Required:

Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round your intermediate computations and final answers to the nearest dollar.

The following order book exists for a particular stock. The last trade on the stock was at $60.36.

a.  If you place a market buy order for 100 shares, at what price will it be filled? (Round your answer to 2 decimal places.)

b. If you place a market sell order for 100 shares, at what price will it be filled? (Round your answer to 2 decimal places.)

c. Suppose you place a market order to buy 350 shares. At what price will it be filled? Choose the appropriate answer.

• 200 shares at $60.43 and 150 shares at $60.42

• 350 shares at $60.43

• 350 shares at $60.36

• 200 shares at $60.38 and 150 shares at $60.39

1.   [Environment analysis] By using Porter’s Five Forces Framework, analyze and explain industry attractiveness (profitability). [About 350 Words]

2.   [Firm analysis] By using Porter’s Value Chain Analysis, analyze the internal activities of Trader Joe’s and their relationships among one another (i.e. how the interactions/combinations of activities contribute to value creation). [About 350 Words]

3.   [Competitive advantage] By using Porter’s Generic Competitive Strategies, explain what the competitive advantage of Trader Joe’s. Identify and explain the company’s source of competitive advantage. [About 350 Words]

4.   [Suggestions/Solution] What strategic advice would you provide to Trader Joe’s to reinforce its future profitability? Identify a strategic recommendation that fits with the opportunities or threats of the external environment and with Trader Joe’s capabilities. [About 200 Words]

In 350 words, discuss the importance of Yield to Maturity and Yield to Call and incorporate real examples where applicable.

EGI is a firm in the gaming sector with 350 million of equity and $175 million of debt in its capital structure (market values). It has 10 million shares outstanding with a 12% unlevered cost of capital and 4% risk free interest rate on its debt. The corporate tax rate is 30%. The firm is planning to come up with a new handheld video game that is expected to have an initial investment of $25 million with project having the same business risk as that of EGI’s existing assets. The new investment is expected to generate annual EBIT of $8 million which is expected to grow at 2% per annum until perpetuity?

a.  EGI initially proposes to fund the new project by issuing equity. If investors were not expecting this investment, and if they share EGI’s view of the project’s profitability, what will the share price be once the firm announces the project plan?

b.  Suppose investors think that the EBIT from EGI’s new project will be only $3 million per year without any growth (i.e. $3 million every year to perpetuity). What will the share price be in this case? How many shares will the firm need to issue?

c.  Suppose EGI issues equity as in part (b). Shortly after the issue, new information emerges that convinces investors that management was, in fact, correct regarding the cash flows from the new project. What will the share price be now? Why does it differ from that found in part (a)? How much will the old and new shareholders gain after the new information arrives?

d.  Suppose EGI instead finances the expansion with a $25 million issue of permanent risk-free debt. If EGI undertakes the expansion using debt, what is its new share price once the new information comes out?

Air at a pressure of 350 kPa, a temperature of 80°C, and a velocity of 180 m/s enters a convergent–divergent nozzle. A normal shock occurs in the nozzle at a location where the Mach number is 2. If the air mass flow rate through the nozzle is 0.7 kg/s, and if the pressure on the nozzle exit plane is 260 kPa, find the nozzle throat area, the nozzle exit area, the temperatures upstream and downstream of the shock wave, and the change in entropy through the nozzle.

The answer should be at least 350 words in length

For the process of developing staff, construct a chart showing the pros and cons of the following:

a. Education

b. Preceptorship/mentorship

c. Small projects

In which type of setting would the above methods be most beneficial? Most cost-effective? Simplest to implement?

1. A vector, V, has a magnitude of 350 N and a direction of 55°.   Determine the following:
   1. V_x = ______
   2. V_y = ______

2. If V_x = 12 m and V_y = 17 m then determine the following:
   1. What is the magnitude, V, of this vector?
   2. What is the direction, θ, of this vector?

3. A hiker walks 2.5 km at an angle of 45 degrees north of west, and then hikes 4.0 km at an angle of 30 degrees north of east.    What is the displacement of the hiker from the origin (magnitude and direction)?   Determine the magnitude and direction by adding the vectors graphically and mathematically.   Be sure to attach your graph.

Magnitude (from graph): _______                                          Magnitude (mathematical) : ______

Direction (from graph):   _______                                             Direction (mathematical) : ______

4. A projectile is launched with a velocity of 130 m/s at an angle of 41 degrees (relative to the ground).   Determine the following:
   1. v_x = _____

2. v_y = _____

3. What is the maximum height of the projectile?

4. What is the range of the projectile?

5. Where is the projectile 4.0 s after it is launched?

6. If there was a 50 m high wall that is 1400 m away, would the projectile be able to clear this wall? Show why or why not.

5. If a river has a westward current of 1.30 m/s and you head due north across the river on a boat that has a speed of 1.5 m/s in still water, then what is speed of the boat relative to the shore?   At what angle does it cross the river?