A company is planning to build an engineering lab at a nearby university through a grant. The building should initially cost $50,000,000 and maintenance cost(end of year) are expected to be $200,000 per year for the first 3 years, $300,000 per year for the next 4 years, and then $400,000 per year after. If the grant will be invested at 10%, how large a donation must the company make? (assume the term is unlimited and lab lasts forever)
In: Finance
Question 6 Gunther Plc provides the following information on its acquisitions of non-current assets:
(1) A non-current asset (asset a) was acquired on 1 January 2016 for £100,000. It had no residual value and a useful economic life of 10 years. On 1 January 2019, the useful economic life was revised to 6 years. The company depreciates similar assets using the straight line method.
(2) A non-current asset (asset b) was acquired for £12,500 at the beginning of 2017. It had a useful economic life of 5 years and no residual value. On 1 January 2019 the asset was revalued to £15,000. The useful economic life remains unchanged. The company depreciates similar assets using the straight line method.
(3) A non-current asset (asset c) was acquired for £25,000 at the beginning of 2017. It had a useful economic life of 5 years and no residual value. On 1 January 2019 the asset was revalued to £30,000. The useful economic life remains unchanged. Asset c was sold on 31 December 2019 for £16,000. The company depreciates similar assets using the straight line method.
Required:
(a) How would each of the transactions (1) to (3) be accounted for in 2019?
(b) Compare and contrast accounting for tangible assets with that for intangible assets. Your answer to this part of the question should not be more than 200 words.
In: Accounting
Depreciation for Partial Periods
Bar Delivery Company purchased a new delivery truck for $36,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 180,000 miles and a residual value of $3,000. The truck was driven 12,000 miles in 2019 and 16,000 miles in 2020. Bar computes depreciation expense to the nearest whole month.
Required:
| 2019 | $ fill in the blank 1 |
| 2020 | $ fill in the blank 2 |
| 2019 | $ fill in the blank 3 |
| 2020 | $ fill in the blank 4 |
| 2019 | $ fill in the blank 5 |
| 2020 | $ fill in the blank 6 |
| 2019 | $ fill in the blank 7 |
| 2020 | $ fill in the blank 8 |
| 2019 | $ fill in the blank 9 |
| 2020 | $ fill in the blank 10 |
| 2019 | $ fill in the blank 11 |
| 2020 | $ fill in the blank 12 |
| 2019 | $ fill in the blank 13 |
| 2020 | $ fill in the blank 14 |
| 2019 | $ fill in the blank 15 |
| 2020 | $ fill in the blank 16 |
In: Accounting
I would like for the project to be on Amazon
The Project to be addressed by the Paper:
You have just graduated from Keiser University’s MBA program and have secured a position as a fund manager for a well known investment banking house. You have been given $25 million to manage/invest in a single stock. The fund is a pension/retirement fund so its perspective is long term with moderate risk of loss of capital and a required return of 9% per annum. Your assignment is to determine if the fund you are managing should invest $25 million dollars in the stock of the company you have selected for your first analysis/investment decision. Select a publicly traded US based company. Do not select a bank or financial intermediary (i.e Investment Bank, Insurance Company, Brokerage House etc). Your decision to invest or not invest will be supported by the research paper and a Power Point Presentation.
NOTE: Most of the data needed for this assignment can be found in Yahoo/finance. Go to Yahoo/finance, select your company, and view the table of contents on the left side of the page.
Your analysis, based on the concepts covered in this course, will address each of the following:
1. Business Strategy Analysis: Develop an understanding of the business and
competitive strategies of the company. Which of the three generic competitive
strategies does the company utilize (low cost provider, differentiation, focus)? This should be covered in not more than three paragraphs. Do not spend time
writing a history of the company. This is an analysis, not a history lesson.
2. Accounting Analysis: Do the accounting practices adopted by the company
generally reflect an accurate picture of the economic performance of the
company? Did your research find any public announcements of restatement of earnings or other financial statements that would indicate that the financial statements may be of dubious value? This can be done by reviewing the company's 8K filings with the SEC (a mandatory requirement for this paper). These filings can generally be found on the company's website under Investor Relations - SEC filings.
3. Financial Analysis: Analyze financial ratios and cash flow measures of the
company relative to its historical performance. For purposes of this research paper a 2 year look back is sufficient and required. You must use at least 10 of the ratios noted on page 119 of the text including all four of the profitability ratios. (Liquidity: Current; Quick; Total assets assets turnover; fixed assets turnover; Days sales outstanding (DSO); Inventory turnover; Debt-to-assets ratio; Times-interest-earned; profit margin on sale; Basic earning power; return on total assets
4. Prospective Analysis: Develop forecasted performance measures and list the
assumptions associated with your forecast. List your assumptions and reasons for your forecast. You may also cite the works of other analysts who have published forecasted earnings for the time frame you are addressing. (Hint: take a look at Yahoo/finance - analysts opinion
5. Conclusion: Will you or will you not invest $25 million in this particular
Company? Support your conclusion? Remember a negative conclusion is just as valid and valuable as a positive conclusion.
In: Accounting
consider an employment interview:
If it is legal to ask if the person was ever convicted of a crime,
why is it illegal to ask if he/ she has ever been arrested?
explain
In: Nursing
How does Nancy use active listening? Which interview techniques are the most effective in facilitating therapeutic communication? Does nonverbal communication play a role?
In: Nursing
Given the three types of consumer market in the interview, fast fashion, bifurcation, hyper-luxury markets, how these markets impact on consumers' well-being or happiness?
In: Economics
In: Psychology
You set up your own business in merchandising sector in Scranton, PA - opening a luxury watch shop on 1/1/2020.
The following is related information about the business:
- Specific sub-sector: Merchandising sector.
- Location: Scranton, PA
- Business model: merchandiser - buying and selling luxury watches.
- Investment by owner: $1,000,000
- You hired a shop manager. In order to handle different aspects of business, you had one employee responsible for the purchasing, receiving, and storing of watches purchased. A second employee is responsible for the maintenance of account receivable records and collection from customers. A third employee has responsibility for personal records, timekeeping, preparation of payrolls, and distribution of payroll checks. As a part of his job, the shop manager would do some internal control functions. In addition, you hired one security officer, and 4 full-time sales assistants.
Requirements:
1/1/2020: Opened the business, invested $1,000,000 cash in the business.
1/1/2020: bought a building for the business purpose for $100,000 cash. The building has a useful economic life of 10 years.
1/1/2020: purchased 100 luxury watches for $200,000 with $100,000 cash payment, the remaining amount payable on 2/1/2021. (each watch costs $2,000)
3/1/2020: purchased 50 luxury watches for $250,000 with cash. Each watch costs $5,000.
4/1/2020: purchased 40 luxury watches for $240,000 with cash. Each costs $6,000.
6/1/2020: Sold 130 watched for $1,300,000. Of which $300,000 cash was received at the time of sale. The remaining amount to be received on 5/2/2021.
7/1/2020: paid $1,200 in advance for 12 months’ property insurance (7/1/20 to 7/1/21).
8/1/2020: borrowed $500,000 from a local Chase bank. Interest rate is 12%/year. Interest is paid every 6 months- the first payment date is 2/1/2021. Principal would be paid on 8/1/2021.
9/1/2020: to expand business, you rent a showroom in the next building. Paid $24,000 cash in advance for 12 month’s rent.
12/31/2020: Paid 2020 utilities expense, advertising expense, and miscellaneous expense for $5000, $15,000, and $4,000, respectively.
Salary is paid on the last day of each month. Each month’s salary expense is $20,000.
Notes:
Requirement: Prepare an excel file that includes
In: Accounting
You set up your own business in merchandising sector in Scranton, PA - opening a luxury watch shop on 1/1/2020.
The following is related information about the business:
- Specific sub-sector: Merchandising sector.
- Location: Scranton, PA
- Business model: merchandiser - buying and selling luxury watches.
- Investment by owner: $1,000,000
- You hired a shop manager. In order to handle different aspects of business, you had one employee responsible for the purchasing, receiving, and storing of watches purchased. A second employee is responsible for the maintenance of account receivable records and collection from customers. A third employee has responsibility for personal records, timekeeping, preparation of payrolls, and distribution of payroll checks. As a part of his job, the shop manager would do some internal control functions. In addition, you hired one security officer, and 4 full-time sales assistants.
Requirements:
1/1/2020: Opened the business, invested $1,000,000 cash in the business.
1/1/2020: bought a building for the business purpose for $100,000 cash. The building has a useful economic life of 10 years.
1/1/2020: purchased 100 luxury watches for $200,000 with $100,000 cash payment, the remaining amount payable on 2/1/2021. (each watch costs $2,000)
3/1/2020: purchased 50 luxury watches for $250,000 with cash. Each watch costs $5,000.
4/1/2020: purchased 40 luxury watches for $240,000 with cash. Each costs $6,000.
6/1/2020: Sold 130 watched for $1,300,000. Of which $300,000 cash was received at the time of sale. The remaining amount to be received on 5/2/2021.
7/1/2020: paid $1,200 in advance for 12 months’ property insurance (7/1/20 to 7/1/21).
8/1/2020: borrowed $500,000 from a local Chase bank. Interest rate is 12%/year. Interest is paid every 6 months- the first payment date is 2/1/2021. Principal would be paid on 8/1/2021.
9/1/2020: to expand business, you rent a showroom in the next building. Paid $24,000 cash in advance for 12 month’s rent.
12/31/2020: Paid 2020 utilities expense, advertising expense, and miscellaneous expense for $5000, $15,000, and $4,000, respectively.
Salary is paid on the last day of each month. Each month’s salary expense is $20,000.
Notes:
Requirement: Prepare an excel file that includes
Tab 2 titled “income statement”: prepare a multiple-step income statement for year ended 12/31/2020.
In: Accounting