McEwan Industries sells on terms of 3/10, net 25. Total sales for the year are $1,817,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 78 days after their purchases. Assume 365 days in year for your calculations.

1. What is the days sales outstanding? Round your answer to two decimal places.

   days

2. What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations.

   $  

3. What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places.

   %

4. What is the percentage cost of trade credit to customers who do not take the discount and pay in 78 days? Round your answers to two decimal places. Do not round intermediate calculations.

   Nominal cost:  %

   Effective cost:  %

5. What would happen to McEwan’s accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 25th day? Round your answers to two decimal places. Do not round intermediate calculations.

   DSO = days

   Average receivables = $  

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows:

1. The inventory at January 1, 2019, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method.
2. Transactions during 2019 were as follows:

Sales to employees are recorded net of discounts.

3. The retail value of the December 31, 2020, inventory was $48,150, the cost-to-retail percentage for 2020 under the LIFO retail method was 42%, and the appropriate price index was 107% of the January 1, 2020, price level.
4. The retail value of the December 31, 2021, inventory was $43,450, the cost-to-retail percentage for 2021 under the LIFO retail method was 41%, and the appropriate price index was 110% of the January 1, 2020, price level.

Required:
1. Estimate ending inventory for 2019 using the conventional retail method. (Amounts to be deducted should be indicated with a minus sign.)

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows:

1. The inventory at January 1, 2019, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method.
2. Transactions during 2019 were as follows:

Sales to employees are recorded net of discounts.

3. The retail value of the December 31, 2020, inventory was $48,150, the cost-to-retail percentage for 2020 under the LIFO retail method was 42%, and the appropriate price index was 107% of the January 1, 2020, price level.
4. The retail value of the December 31, 2021, inventory was $43,450, the cost-to-retail percentage for 2021 under the LIFO retail method was 41%, and the appropriate price index was 110% of the January 1, 2020, price level

Required:
2. Estimate ending inventory for 2019 assuming Raleigh Department Store used the LIFO retail method

McEwan Industries sells on terms of 3/10, net 20. Total sales for the year are $1,001,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 52 days after their purchases. Assume 365 days in year for your calculations.

What is the days sales outstanding? Round your answer to two decimal places.

days

What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations.

$  

What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places.

%

What is the percentage cost of trade credit to customers who do not take the discount and pay in 52 days? Round your answers to two decimal places. Do not round intermediate calculations.

Nominal cost:  %

Effective cost:  %

What would happen to McEwan’s accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 20th day? Round your answers to two decimal places. Do not round intermediate calculations.

DSO = days

Average receivables = $  

Allocating Joint Costs Using the Constant Gross Margin Method

A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,800. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows:

Required:

1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze.

2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.

(Note: The joint cost allocation does not equal due to rounding.)

FIFO Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments: Units in beginning inventory 370 Units started into production 4,290 Units in ending inventory 340 Units transferred to the next department 4,320 ________________________________________ Materials Conversion Percentage completion of beginning inventory 70% 30% Percentage completion of ending inventory 70% 50% ________________________________________ The cost of beginning inventory according to the company’s costing system was $7,836, of which $4,852 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $178,099. The costs per equivalent unit for the month were: Materials Conversion Cost per equivalent unit $18.00 $23.00 ________________________________________ Required: 1. Compute the total cost per equivalent unit for the month. 2. Compute the equivalent units of material and of conversion in the ending inventory. 3. Compute the equivalent units of material and of conversion that were required to complete the beginning inventory. 4. Determine the number of units started and completed during the month. 5. Determine the costs of ending inventory and units transferred out.

1. As the CFO, you decided to hedge using forward contracts. Assume that the expected final sales volume is 30,000. What are your total benefit/cost and the percentage benefit/cost from hedging (compared to no hedging)

a) if the exchange rate remains at $1.18/€?

b) if the exchange rate will be $1.3/€?

c) if the exchange rate will be $1.1/€?

d) As the CFO, you decided to hedge using option contracts. Assuming expected final sales volume is 30,000, what are your total benefit/cost and the percentage benefit/cost from hedging (compared to no hedging)

e) if the exchange rate remains at $1.18/€?

f) if the exchange rate will be $1.3/€?

g) if the exchange rate will be $1.1/€?

What is the most profitable strategy for the case in which the expected final sales volume is 30,000 (no hedge, forward contract, or option contract)

h) if the exchange rate remains at $1.18/€?

i) if the exchange rate will be $1.3/€?

j) if the exchange rate will be $1.1/€?

k) Is there a best strategy? Why? Note that you only need to provide a few sentences about which strategy to use from no hedge, forward contract, or option contract strategies.

For this activity, prepare a presentation to solicit support for the establishment of an airport. You will research and select the location for your airport. You may choose any location (national or international) that you wish as well as any type of airport. Your presentation must include: The airport location The airport type Funding/revenue sources for airport construction and operation Steps involved during its design, development, and construction Environmental considerations.

Why would a developer do a phase one environmental study in the due diligence phase before closing on a property?

From the checklist for buying land, why is it important to do a title search?

What is meant by the term "developer's equity" and why is it important to construction lenders?

When considering a development construction loan, would you be better off contacting a commercial bank or a life insurance company and why?

Mr. Tan Eng Lee’s property development company, Alan Construction Private is involved in numerous property development projects in Malaysia. He thinks that the current functional based organizational structure is not working well. Alan Construction private is involved in a condominium project in AUSTRALIA, a housing project in ENGLAND, a shopping mall project in AMERICA and a business center project in AFRICA.

He called for a meeting with the heads of department for Human Resource, Administration and Finance , ICT, Warehouse and Procurement and Engineering to discuss how best to re-structure their organization and to discuss the advantages and disadvantages of the new structure.

(a) Based on the information provided above, recommend a suitable form of organization structure that would benefit Alan Construction Private. (You need to provide a drawing of the structure).

(b) What are the advantages and disadvantages of the new structure? (10marks)