Credit Card Transactions:

September26: Credit card payment $9,000.

September28: Paid net wages to 4 employees @$1082 each after withholding tax of @$118 per employee. Guaranteed super is 9.5% on gross salary. You will mention the name of each employed as a payee.

September 28: Received Electricity bill $231 including GST. The bill is not yet paid.

September 30: Bank charged account fees $10.        

1. Prepare Profit and Loss Statement for the month ended on 30th September2020 and Balance Sheet at 30th September2020.

Which of the following is true?

Level II ADRs are:

1. Assume the following information pertains to three mutual funds

    U.S. REIT                                                   8%                                       18%

Assume that the correlation between U.S. Bond and U.S. Equity is 10%, the correlation between U.S. Bond and U.S. REIT is 70%, and the correlation between U.S. Equity and U.S. REIT is 60%.

a) What is the standard deviation of this portfolio of 20% Bond, 20% REIT and 60% Equity?

B) Now assume there is a risk-free asset with return = 3% and standard deviation = 0. What is the Sharpe ratio of the

portfolio 20% Bond, 20% REIT and 60% Equity?

At one time most products purchased in the U.S. were made in the U.S. Now many products you can purchase in the U.S. seem to be made in other countries.

1. State one way that increased sales of goods made in other countries in the U.S. has helped U.S. companies and/or workers and/or consumers?

2. State one way that increased sales of goods made in other countries in the U.S. has hurt U.S. companies and/or workers and/or consumers?

3. On balance, do you think increased sales of goods made in other countries in the U.S. has mostly helped or mostly hurt U.S. companies, workers, and consumers?

4. Name one way that you think U.S. companies can do to better compete with other countries?

You have been hired as a consultant for Wrigley a well-known and loved worldwide manufacturer of chewing gum. Three of these brands - Juicy Fruit®, Wrigley's Spearmint® and Altoids® - have heritages stretching back more than a century. Wrigley sells its products in more than 180 countries around the world. The CEO of Wrigley, William Perez is in charge of a recent acquisition of a manufacturer of organic chewing gum, Natural Mint, Inc. which is located in Portland, Oregon. The company has one main product which is made in five flavors. He has asked you to prepare a preliminary cost-volume-profit analysis to determine whether changes should be made to the cost structure of selling expenditures.

The following information was presented for use in the analysis:

Selling price per unit: $2.00

Questions (each question is independent of the others):

1. What is the current break-even point in units and in dollars? Also compute the margin of safety.

2. Assume the company sold 500,000 packs of gum last year. What is Natural Mint's operating leverage? If sales decreased 10%, by what % will Net Income decrease? Create a contribution margin income statement to prove that your calculations are correct.

3. What is the break-even point in units if variable selling costs are increased to 0.05 per unit? Would you recommend this change to the CEO if the expected sales level is 520,000 packages? Explain - consider the breakeven point and profit.

4. Independent of Question 3, what is the break-even point in dollars if the variable selling is eliminated and replaced with an increase to Fixed Selling costs of $200,000? Would you recommend this change to the CEO if the expected sales level is 550,000 units? Explain - consider the breakeven point margin of safety and profit.

Think of a company you know – whether as a customer, employee, supplier, etc. -- which is earning substantial profits in spite of the 2020 Covid pandemic and resulting economic downfall. How would each of the theories of justice in economic distribution – utilitarian, libertarian, or egalitarian – apply?

Starbucks

select among the nine factors to reduce a labor surplus

what options could the company use to respond to excess staff beginning in March 2020 to reduce its workforce due to the pandemic? Discuss at least five factors through available resources.  

Sandrine Machinery is a Swiss multinational manufacturing company. Currently, Sandrine's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-denominated cash flows consist of an initial investment of $2000 and a cash inflow the following year of $2400. Sandrine estimates that its risk-adjusted cost of capital is 10%. Currently, 1 U.S. dollar will buy 0.96 Swiss franc. In addition, 1-year risk-free securities in the United States are yielding 3%, while similar securities in Switzerland are yielding 1.50%. Do not round intermediate calculations.

a) If this project was instead undertaken by a similar U.S.-based company with the same risk-adjusted cost of capital, what would be the net present value and rate of return generated by this project? Round your answers to two decimal places.

NPV = $ _____

Rate of return = _____

b) What is the expected forward exchange rate 1 year from now? Round your answer to two decimal places.

_____ SF per U.S. $

c) If Sandrine undertakes the project, what is the net present value and rate of return of the project for Sandrine? Do not round intermediate calculations. Round your answers to two decimal places.

NPV = ____Swiss Francs

Rate of return = ____%