Amy Cola is considering launching a new soft drink product. The beverage will be sold in a variety of different flavors and will be marketed to young children. In evaluating the proposed project, the company has the following information:

• The company estimates that the project will last for 4 years.

• The company will need to purchase new machinery that has an up-front cost of $40 million (incurred at Year 0). The machinery will be fully depreciated on a 4-year straight-line basis with no salvage value.

• To gain more insight, Indiana had spent $1 million on marketing research costs.

• Production of the new product will take place in a recently vacated facility that the company owns. It is currently empty and Indiana does not intend to lease the facility.

• The project will require a $2 million increase in net operating working capital (NOWC) at Year 0. After Year 0, there will be no changes in NOWC, until Year 4 when the project is completed, and the NOWC is fully recovered.

• The company estimates that sales of the new drink will be $27 million each of the next four years.

• Operating costs (excluding depreciation) are expected to be $11 million each year.

• The company’s tax rate is 20%.

• The owners expect a return of 18% per year but the market interest rate charged by commercial banks are 5% per year.

Based on the information above, the company has estimated the project’s free cash flows as shown in the table below and concluded that it should pursue this business opportunity as it is expected to generate a positive net present value (NPV).

Discuss whether the company has conducted the analysis correctly and what the flaws are. Revise the cash flow estimation, re-calculate the net present value (NPV), the internal rate of return (IRR), payback period and provide your recommendations.

Question1:

The following financial statements were prepared at the end of the month of May:

TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May

TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY

TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31

During June the following transactions occurred:

1) Paid the helper the $1,000 owed from works done in May (the amount owed is in Accounts Payable).

2) Completed the job for which the customer paid $200 in May. Tops in Topiary collected $2000 in cash once finished.

3) Paid $500 for the rent of July.

4) At the end of June notices that there are no supplies left. Makes a note to buy some in July.

5) At the end of June notices that there are few flyers left (used for advertising) worth $200 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $600 of the amount owed for the flyers done in May. Tops in Topiary pays $600.

6) In June collected in cash $3,000 for 3 jobs are done for a total of $4,500, the rest is owed in account by the customers.

7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years.

8) In June 23rd Edward Scissorhands withdrew some cash for personal reasons ($2,000).

Prepare "T" Accounts in ACCRUAL Basis for the period ended on June 30th and then answer the questions.

Question1:

At the end of the accounting period (June 30th, T account after AJE), what is the balance of Cash/Bank account (use only one account for all cash/cheque transactions)

a. Less than $800

b. Between $1,200 and $1,599

c. Between $1,600 and $2,000

d. Between $800 and $1,199

e. More than $2,000

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-

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Question 2

The following financial statements were prepared at the end of the month of May:

TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May

TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY

TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31

During June the following transactions occurred:

1) Paid the helper the $1,000 owed from works done in May (the amount owed is in Accounts Payable).

2) Completed the job for which the customer paid $200 in May. Tops in Topiary collected $2000 in cash once finished.

3) Paid $500 for the rent of July.

4) At the end of June notices that there are no supplies left. Makes a note to buy some in July.

5) At the end of June notices that there are few flyers left (used for advertising) worth $200 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $600 of the amount owed for the flyers done in May. Tops in Topiary pays $600.

6) In June collected in cash $3,000 for 3 jobs are done for a total of $4,500, the rest is owed in account by the customers.

7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years.

8) In June 23rd Edward Scissorhands withdrew some cash for personal reasons ($2,000).

Prepare "T" Accounts in ACCRUAL Basis for the period ended on June 30th and then answer the questions.

Question 2:

At the end of the accounting period (June 30th, T account after AJE), what is the total of Assets?

A. Between $2,000 and $2,999

B. More than $5,500

C. Between $4,500 and $5,500

D. Between $3,000 and $4,499

E. Less than $2,000

You are interested in finding a 98% confidence interval for the average commute that non-residential students have to their college. The data below show the number of commute miles for 10 randomly selected non-residential college students. Round answers to 3 decimal places where possible.

a. To compute the confidence interval use a

distribution.

b. With 98% confidence the population mean commute for non-residential college students is between and miles.

c. If many groups of 10 randomly selected non-residential college students are surveyed, then a different confidence interval would be produced from each group. About percent of these confidence intervals will contain the true population mean number of commute miles and about percent will not contain the true population mean number of commute miles.

1 ) If a flight is on time 90% of the time, use a normal approximation to the binomial to find the probability that between 175 and 190 out of a total of 200 flights will be on time.

2)- In a study done by Statistics Weekly, they found that 12% of people believe that there will eventually be a zombie apocalypse. Suppose we have a random sample of 500, would it be unusual to find 43 people who believe that there will eventually be a zombie apocalypse. Would it be unusual to find 70 people who believe that there will eventually be a zombie apocalypse?

3-)  The age at the time of marriage was obtained for a random sample of 10 women. The results were 28, 24, 22, 25, 33, 35, 27, 26, 27, 20. Assume that the population has a normal distribution. Find a 90% confidence interval for the mean age at which a woman marries. Interpret your answer.

in detail, please

Below are the line structures for four biofuels, as well as data for the energy content of ethanol and biodiesel. H3C OH Ethanol O OH OH HO HO HO Glucose (wood) H3C OH Butanol H3C O O CH3 Biodiesel

Fuel Energy Content (MJ/kg) Chemical Formula O:C ratio

Ethanol 27

Biodiesel 44

Butanol

Glucose

a. Interpret the structures to determine the chemical formula of each fuel and write it in the table above.

b. Use the chemical formula information to determine the oxygen to carbon (O:C) ratio of each fuel and fill in these values in the table above.

c. Based on the above data, predict the energy content of butanol and glucose. Would the energy content be below 27 MJ/kg, above 44 MJ/kg, or somewhere in between these two values? Indicate these predictions in the table above.

Sales revenue                                                               $5,625,000

Variable manufacturing expense                  1,875,000

Variable selling and admin expense                 625,000

Fixed manufacturing expense                      1,000,500

Fixed selling and administrative expense        562,000

Total Expenses                                                             (4,062,500)

Net operating income                                                    $ 1,562,500

Company produced and sold 625,000 units of products.

Requirements:

1. Compute Break-even point in unit and explain what that number means.
2. Compute Break-even point in dollar sales volume and explain what that number means.
3. If company want to have a pretax profit of $2,000,000, how much they should sell in dollar amount? Explain that number

11.          Cite at least three challenges facing India and describe how each hinders economic growth.

                12.          How much did the World Bank contribute to India in development assistance?

                13.          Cite at least one news item for India and explain how it relates to economic growth.

                14.          Find the statistics (1–5 above) India, Is your country converging? Explain.

GDP If national income is a good measure of well-being, why is Switzerland’s Gross Domestic Product so much lower than India’s GDP ? What measures would better compare the well-being for residents of different countries? How do you expect these direct measures to correlate with per capita GDP?

Henry Hawkins uses an accrual-based accounting system. That means they report sales revenues on the income statement in the period the revenues are earned and they report expenses on the income statement in the period the expenses were incurred to earn the revenue.

Based on the following information, calculate the cash received from customers for 2016.

Sales for 2016 (all on account) $1,545,000

Accounts receivable, January 1, 2016 $81,600

Accounts receivable, December 31, 2016 $100,800

Cash received from customers in 2016

Assume that the only thing happening in Accounts Payable is the purchase and payment of inventory. Based on the following information, calculate the cash paid for inventory for 2016:

Cost of goods sold $525,000

Inventory, January 1, 2016 $158,600

Accounts payable, January 1, 2016 $66,700

Inventory, December 31, 2016 $130,400

Accounts payable, December 31, 2016 $82,000

Cash paid for inventory in 2016

please answer with details:

Q- International Electronic Products Ltd. (IEP) have sales revenue of€365m p.a. earned evenly throughout the year. They offer all customers 30 days credit, half of whom adhere to the terms, while the other half takes an average of 70 days credit. The business is considering offering a 2% discount to all customers who adhere to the 30 days credit term. Market research shows that this 2% discount offer will result in half of those who pay in 70 days paying in 30 days, but the balance will still take 70 days. But importantly, the scheme is also expected to reduce bad debts by €300,000 per annum.

i- Calculate the cost / benefit of this proposal, if IEP are currently paying 12% per annum interest on a continuing overdraft of approx €50m.

ii- Comment on whether should IEP go ahead with the proposed scheme?