Violet Sky Entertainment is evaluating the trampoline park project, a 2-year project that would involve buying equipment for 54,000 dollars that would be depreciated to zero over 2 years using straight-line depreciation. Cash flows from capital spending would be $0 in year 1 and 5,000 dollars in year 2. Relevant annual revenues are expected to be 83,000 dollars in year 1 and 83,000 dollars in year 2. Relevant expected annual variable costs from the project are expected to be 10,000 dollars in year 1 and 10,000 dollars in year 2. Finally, the firm has no fixed costs in year 1 and one fixed cost in year 2 of the project. Yesterday, Violet Sky Entertainment signed a deal with Indigo River Marketing to develop an advertising campaign. The terms of the deal require Violet Sky Entertainment to pay Indigo River Marketing either 55,000 dollars in 2 years from today if the trampoline park project is pursued or 27,000 dollars in 2 years from today if the trampoline park project is not pursued. The tax rate is 40 percent and the cost of capital for the trampoline park project is 17.97 percent. What is the net present value of the trampoline park project?

The Gold Bay Hotel is in the process of developing a master budget and Pro-forma financial statements. The beginning balance sheet for the current fiscal year is estimated to be

Gold bay Hotel Estimated Balance sheet current year

During the year the hotel expects to rent 30,000 rooms. Rooms rent for an average of $ 90 per night. The hotel expects to sell 40,000 meals during the year at an average price of $ 20 per meal. the variable cost per room rented is $ 30 and the variable cost per meal is $8. The fixed costs not including depreciation is expected to be $ 2,000,000. Depreciation is expected to be $ 500,000. The hotel also expects to refurbish the kitchen at a cost $ 200,000. Which is capitalized ( included in the facility account). Interest of the note payable is expected to be $ 50,000 and $ 100,000 of the note payable will be retired during the year. The ending accounts receivable amount is expected to be $ 40,000 and the ending account payable is expected to be $ 30,000.

Required

Prepare Pro-forma financial statement for the end of the current year.

The Empire Hotel is a full-service hotel in a large city. Empire is organized into three departments that are treated as investment centers. Budget information for the coming year for these three departments is shown as follows. The managers of each of the departments are evaluated and bonuses are awarded each year based on ROI.

Required:

a. Compute the ROI for each department. Use the DuPont method to analyze the return on sales and capital turnover.

Assume the Health Spa is considering installing new exercise equipment. Upon investigating, the manager of the division finds that the equipment would cost $40,000 and that operating earnings would increase by $8,000 per year as a result of the new equipment.

b-1. What would be the ROI of investment in the new exercise equipment and Health Spa?

b-2. Would the manager of the Health Spa be motivated to undertake such an investment?

c-1. Compute the residual income for each department if the minimum required return for the Empire Hotel is 17 percent.

c-2. What would be the impact of the investment on the Health Spa's residual income?

Suppose that the United States and Canada can each produce two products: lumber and beef.

Create a table like the one below, showing labor requirements per unit of output for each country. (Hint: Choose numbers for each country that are easily divisible by one another.)

Labor Requirements per Unit of Output United States Canada Lumber Beef What does absolute advantage mean?

How do you calculate absolute advantage? In what output(s) does the U.S. have an absolute advantage?

Explain using the data from your table. In what output(s) does Canada have an absolute advantage?

Explain using the data from your table. What does comparative advantage mean? How do you calculate comparative advantage? In what output(s) does the U.S. have a comparative advantage? Explain using the data from your table. In what output(s) does Canada have a comparative advantage? Explain using the data from your table. What product should each country export? Why?

1. What are the three basic functions of money? Describe how rapid inflation can undermine money’s ability to perform each of the three functions.

2. Which two of the following financial institutions offer checkable deposits included within the M1 money supply: mutual fund companies; insurance companies; commercial banks; securities firms; thrift institutions? Which of the following items is not included in either M1 or M2: currency held by the public; checkable deposits; money market mutual fund balances; small-denominated (less than $100,000) time deposits; currency held by banks; savings deposits?

3. What “backs” the money supply in the United States? What determines the value (domestic purchasing power) of money? How does the purchasing power of money relate to the price level? Who in the United States is responsible for maintaining money’s purchasing power?

4. How is the chairperson of the Federal Reserve System selected? Describe the relationship between the Board of Governors of the Federal Reserve System and the 12 Federal Reserve Banks. What is the purpose of the Federal Open Market Committee (FOMC)? What is its makeup?

As controller of the Parent Company who is ready to prepare financial statements, you have the following information:

1. You, the Parent Company, have 141 subsidiaries or investees.
2. 80 of these subsidiaries are located in the United States and are 100% owned and controlled by you (the Parent.)
3. 20 of these companies are located in the United States but you only own 30% of the company.
4. 40 of these subsidiaries are 100% owned and are located in the European Union, which uses IFRS as the accounting framework. 38 of these 40 subsidiaries use the Euro to denominate their financial statements; 2 of the 40 subsidiaries do not use the Euro; one uses the Polish Złoty PLN and the other uses the Danish krone to denominate financial statements.
5. One 100% owned subsidiary is in Switzerland which allows IFRS or U.S. GAAP to be used as the accounting framework. Financial statements are denominated in the Swiss Franc.

REQUIRED: What are the steps you would use (the Parent Company) to prepare consolidated financial statements for the parent company, the 121 100% owned subsidiaries, and the 20 companies in which you are heavily invested. [Consider IFRS, foreign currency; NCI, and anything else you think is pertinent.]

Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 41,000 speaker sets: Sales $ 3,280,000 Variable costs 820,000 Fixed costs 2,310,000 Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $20.00 per set; annual fixed costs are anticipated to be $1,990,000. (In the following requirements, ignore income taxes.) Required: 1. Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. 2. Determine the break-even point in speaker sets if operations are shifted to Mexico. 3. Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States. a. If variable costs remain constant, by how much must fixed costs change? b. If fixed costs remain constant, by how much must unit variable cost change? 4. Determine the impact (increase, decrease, or no effect) of the following operating changes.

You are interested in determining if neonatal mortality is equally likely across races in the United States. You know that at the time of analysis, the United States was composed of 75.1% white individuals, 12.3% black individuals, and 12.6% of other races and you can presume that births match these proportions. If neonatal mortality is not equally likely across all races, then determine which categories differ from other categories. Number of neonatal mortalities in 1999 by race are provided in the table above

*I will have to solve this using Excel. Specifically what should I do? What functions could I use? For the question, I have to

1. A null and alternative hypothesis stated, as appropriate and for each hypothesis tested. may involve several hypothesis tests.

2. Choose the most appropriate test. Explain how you have met the assumptions of the test or why the test is robust to violations of the assumptions.

3. State explicitly what test(s) you are using.

4. If you fail to reject the null hypothesis, calculate the power of the test.

Does a country need to be monetarily rich in order to be happy?

One country in Central America, Costa Rica (the name literally translates to “rich coast”) doesn’t think so. Although its GDP per capita is about $10,000 a year (or one-sixth that of the United States) in 2015 Costa Rica ranked higher than the United States in terms of happiness (12th, according to the World Happiness Report by the Sustainable Development Solutions Network). Costa Ricans have the uplifting national slogan “pura vida,” which means “pure life” and is used in conversation to express optimism and reflect their relaxed lifestyle.

What factors allow Costa Ricans to live happy lives despite their modest incomes? (Need to do a little research for this question. Cite your sources.)

Can a happier nation be a prosperous nation? In other words, is there a trade-off? Or can a nation be both happy and prosperous?

Can (or should) the U.S. adopt a similar cultural, political, and economic shift emphasizing people's well-being (happiness) over GDP growth? How would this shift affect GDP and productivity? Explain your responses. Cite your sources.