Evaluate the following expressing your answer in its simplest form: 5 7 − 3 14 × 2 27 5 6 + 1

Three businessmen decide to open up their own company. They agree to distribute the yearly profits made in the same ratio as their initial investments. They invest R 50 000, R 75 000 and R 25 000, respectively. The profit made by the company in the first year is R 600 000.

(a) Express the ratio of the initial investments in simplest form.

(b) How much will each businessman receive by way of profit?

Simplify each of the following expressions:

(a) 6? − 9? + 4? + 2?

(b) 7?(2? + 5)

Solve each of the following equations:

(a) 3? − 8 = 5? − 12

(b) ?+9 5 + 8? = 11 − ?

ABC Company produces Product X, Product Y, and Product Z. All three products require processing on specialized finishing machines. The capacity of these machines is 2,130 hours per month. ABC Company wants to determine the product mix that should be achieved to meet the high demand for each product and provide the maximum profit. Following is information about each product: Product X Product Y Product Z Selling price $ 149 $ 121 $ 35 Variable costs 104 60 27 Machine time per unit 3 hours 3 hours 1 hour Monthly demand (units) 430 280 755

Determine how the 2,130 hours of machine time should be allocated to the three products to provide the most profitable product mix. (Do not round intermediate calculations.)

Hogan Company uses the net method of accounting for sales discounts. Hogan offers trade discounts to various groups of buyers.

On August 1, 2021, Hogan factored some accounts receivable on a without recourse basis. Hogan incurred a finance charge.

Hogan also has some notes receivable bearing an appropriate rate of interest. The principal and total interest are due at maturity. The notes were received on October 1, 2021, and mature on September 30, 2022. Hogan’s operating cycle is less than one year.

1a. What is the rationale for the amount recorded as sales under the net method?

1b. Using the net method, describe any effect on Hogan’s sales revenues and net income when customers do not take the sales discounts.

2. Describe the effect trade discounts have on the amount recorded as sales revenue and accounts receivable

3. Explain why Hogan should or shouldn't decrease accounts receivable to account for the receivables factored on August 1, 2021.

4. Explain the reasoning for the classification of the interest-bearing notes receivable as current or non-current in its December 31, 2021, balance sheet.

Activity #1 Goal: Produce an Excel spreadsheet that allows your company to model profitability. Assume your company produces bicycles and manufactures these different models: road, mountain, tandem, electric and hybrid.

1) Create a new Excel spreadsheet.

2) Create a new worksheet in the Excel spreadsheet – In this worksheet, create a model that allows the following variables to be changed for each of the 5 bicycle types: 1) The sales quantity 2) The sales price per unit 3) The Cost of Goods Sold (COGS) per unit

Create formulas to calculate the total sales (revenue) and total COGS.

3) Create another worksheet (2) in the same spreadsheet – In this worksheet, create an income statement to model profitability, using the following::

a. The total sales (revenue) and total COGS from worksheet (1). Hint: Use formulas to obtain the total sales (revenue) and total COGS from the worksheet.

b. Selling and General Admin (SG&A) expenses of $25,000.

c. Research & Development (R&D) expenses of $40,000.

d. Miscellaneous Overhead expenses of $5000.

e. Use formulas to calculate Gross Profit, Total Opex and Net Profit and all of the % of sales values.

Fair Value Hedge: Short in Commodity Futures

American Italian Pasta Company (AIPC) manufactures several varieties of pasta. On January 1, 2020, AIPC had excess commodity inventories carried at acquisition cost of $1,000,000. These commodities could be sold or manufactured into pasta later in the year. To hedge against possible declines in the value of its commodities inventory, on January 6 AIPC sold commodity futures, obligating the company to deliver the commodities in February for $1,100,000. The futures exchange requires a $20,000 margin deposit. On February 19, the futures price increased to $1,150,000 and the company closed out its futures contract. Spot prices continued to rise and AIPC sold its inventory for $1,175,000 in cash on March 2.

Required

a. Prepare the journal entries related to AIPC’s futures contract and sale of commodities inventory. Assume a perpetual inventory system, that spot and futures prices move in tandem, and the futures position qualifies for hedge accounting. All income effects for the inventories and related hedges are reported in cost of goods sold.

b. By how much would AIPC’s profit increase if the hedge was not undertaken?

$Answer

1. Suppose that you are responsible for running the Facebook page of a local company that you are working for. The following metrics summarize the account information for the past month:

   Total number of likes on the posts = 150

   Total number of comments on the posts = 100

   Total number of shares of the posts = 20

   Total number of posts you made = 10

   Total number of followers of the page = 1000

   Answer the next four questions based on the information provided

   What is the amplification rate?

   	A.	15
   	B.	10
   	C.	27%
   	D.	15%
   	E.	2

1. What is the applause rate?

   	A.	15
   	B.	10
   	C.	2
   	D.	27%
   	E.	15%

1. What is the engagement rate?

   	A.	10
   	B.	2
   	C.	15
   	D.	15%
   	E.	27%

1. What is the conversion rate?

   	A.	2
   	B.	15%
   	C.	10
   	D.	15
   	E.	27%

Dickson City Company has annual sales of $5 million, while the cost of goods sold is $3.2 million. All sales are made on a cash basis. The owner of Dickson has come up with the plan of giving credit to the customers. He believes that this will increase the sales by 25% without increasing any of the fixed costs. He thinks that 20% of the customers will pay within 30 days, 40% within 60 days, 37% within 90 days, and 3% of the customers will default on the sales. The cost of capital to Dickson is 12%.

(A) Should Dickson City introduce the policy of credit sales?

Answers: NPV(cash) = $1.8 million, NPV(credit) = 1.941 million, yes. ♥

(B) The manager of the firm doubts whether the sales will actually increase by 25% as a result of this strategy. Find the minimum increase in sales to justify introduction of the new credit policy.

Answer: 15.29%

On July 1, 2010, ABC co. had a cash balance of $10 000.During July the following summary transactions were completed.

1.Received $1,200 cash from customers on account.

2.Received $2,400 cash for services performed in July.

3.Purchased store equipment on account $3,000.

4.Paid cash $ 2000 for a one – year insurance policy.

5.Purchased supplies on account $1,200.

6.Paid creditors $4,400 on account.

7.Performed services on account and billed customers for services provided $1,500.

8.Signed a contract with Alex company to buy furniture of $2 000 next month.

9.Received $800 from customers for future service.

10.Paid salaries of $ 5 000.

11.Rent of $400 was unpaid at July 31.

Required:

(a) Journalize the transactions.

(b) Post to the cash ledger account.

Find the probability of the following: (Be sure to include all work)

World Wide Insurance Company found that 53% of the residents of a city had homeowner's insurance (H) with the company. Of these clients, 27% also had automobile insurance (A) with the company. If a resident is selected at random, find the probability that the residence has both homeowner's and automobile insurance with World Wide Insurance Company.