Questions
I am writing a paper on Financial Restructuring. I am required to pick a company that...

I am writing a paper on Financial Restructuring. I am required to pick a company that is in [potential] trouble of defaulting/bankruptcy. I have chosen Toys R Us.

I am required to:

1) Analyze the company's (Toys R Us) financial history and current financial situation.

2) Propose a financial restructuring proposal.

It is my understanding that I need to look at all possible financial statements, income statements, cash flows, and use financial tools to "financially restructure" and propose a "fix" to save Toys R Us.

What are the ways in which a company can turn itself around through the use of these financial restructuring methods?

I am not sure what to look into exactly, and how to approach this.

I am struggling with the thought of having to write 3pages on this....

In: Finance

The Dean of ASBE School of Business is concerned that grades in the MBA program are...

The Dean of ASBE School of Business is concerned that grades in the MBA program are distributed appropriately. Too many high grades or too many low grades would pose a problem. We wish to test the claim that the mean GPA of ASBE students is smaller than 3.6 at the .01 significance level.

The null and alternative hypothesis would be:

  • H0:μ=3.6
    Ha:μ<3.6
  • H0:p=3.64/4
    Ha:p≠3.64/4
  • H0:p=3.6/4
    Ha:p>3.6/4
  • H0:p=3.6/4
    Ha:p>3.6/4
  • H0:μ=3.6
    Ha:μ>3.6
  • H0:p=3.6/4
    Ha:p<3.6/4
  • H0:μ=3.6
    Ha:μ≠3.6
  • The test is:

    two-tailed

    right-tailed

    left-tailed



    Based on a sample of 20 student grades, the sample mean GPA was 3.55 with a standard deviation of 0.08

    The test statistic is:  (Round to 3 decimals)

    Based on this we:
  • Fail to reject the null hypothesis
  • Reject the null hypothesis

In: Statistics and Probability

The Dean of ASBE School of Business is concerned that grades in the MBA program are...

The Dean of ASBE School of Business is concerned that grades in the MBA program are distributed appropriately. Too many high grades or too many low grades would pose a problem. We wish to test the claim that the mean GPA of ASBE students is smaller than 3.3 at the .005 significance level.

The null and alternative hypothesis would be:

  • H0:p=3.34H0:p=3.34
    Ha:p>3.34Ha:p>3.34
  • H0:μ=3.3H0:μ=3.3
    Ha:μ≠3.3Ha:μ≠3.3
  • H0:p=3.34H0:p=3.34
    Ha:p<3.34Ha:p<3.34
  • H0:μ=3.3H0:μ=3.3
    Ha:μ<3.3Ha:μ<3.3
  • H0:p=3.34H0:p=3.34
    Ha:p≠3.34Ha:p≠3.34
  • H0:μ=3.3H0:μ=3.3
    Ha:μ>3.3Ha:μ>3.3



The test is:

left-tailed

two-tailed

right-tailed



Based on a sample of 75 student grades, the sample mean GPA was 3.28 with a standard deviation of 0.02

The test statistic is:  (Round to 3 decimals)

Based on this we:

  • Fail to reject the null hypothesis
  • Reject the null hypothesis

A shareholders' group is lodging a protest against your company. The shareholders group claimed that the mean tenure for a chief exective office (CEO) was at least 9 years. A survey of 59 companies reported in The Wall Street Journal found a sample mean tenure of 7.3 years for CEOs with a standard deviation of s=s= 5 years (The Wall Street Journal, January 2, 2007). You don't know the population standard deviation but can assume it is normally distributed.

You want to formulate and test a hypothesis that can be used to challenge the validity of the claim made by the group, at a significance level of α=0.01α=0.01. Your hypotheses are:

      Ho:μ=9Ho:μ=9
      Ha:μ<9Ha:μ<9

What is the test statistic for this sample?
test statistic =  (Report answer accurate to 3 decimal places.)

What is the p-value for this sample?
p-value =  (Report answer accurate to 4 decimal places.)  

The p-value is...

  • less than (or equal to) αα
  • greater than αα



This test statistic leads to a decision to...

  • reject the null
  • accept the null
  • fail to reject the null



As such, the final conclusion is that...

  • There is sufficient evidence to warrant rejection of the claim that the population mean is less than 9.
  • There is not sufficient evidence to warrant rejection of the claim that the population mean is less than 9.
  • The sample data support the claim that the population mean is less than 9.
  • There is not sufficient sample evidence to support the claim that the population mean is less than 9.

In: Statistics and Probability

A random sample of 28 students at a particular university had a mean age of 22.4...

A random sample of 28 students at a particular university had a mean age of 22.4 years. If the standard deviation of ages for all university students is known to be 3.1 years ,Find a 90% confidence interval for the mean of all students at that university.

In: Statistics and Probability

Amazon Quarterly Revenue (Millions of US $) 2020-03-31 $75,452 2019-12-31 $87,437 2019-09-30 $69,981 2019-06-30 $63,404 2019-03-31...

Amazon Quarterly Revenue
(Millions of US $)
2020-03-31 $75,452
2019-12-31 $87,437
2019-09-30 $69,981
2019-06-30 $63,404
2019-03-31 $59,700
2018-12-31 $72,383
2018-09-30 $56,576
2018-06-30 $52,886
2018-03-31 $51,042
2017-12-31 $60,453
2017-09-30 $43,744
2017-06-30 $37,955
2017-03-31 $35,714
2016-12-31 $43,741
2016-09-30 $32,714
2016-06-30 $30,404
2016-03-31 $29,128
2015-12-31 $35,746
2015-09-30 $25,358
2015-06-30 $23,185
2015-03-31 $22,717

Use actual sales (revenue) data from previous 4 years to estimate sales using the linear trend function. Please show work in excel!!

In: Finance

Smart Company prepared its annual financial statements dated December 31, 2020. The company applies the FIFO...

Smart Company prepared its annual financial statements dated December 31, 2020. The company applies the FIFO inventory costing method; however, the company neglected to apply the LC&NRV valuation to the ending inventory. The preliminary 2020 statement of earnings follows:

Sales revenue $ 297,000
Cost of sales
Beginning inventory $ 32,700
Purchases 201,000
Cost of goods available for sale 233,700
Ending inventory (FIFO cost) 75,536
Cost of sales 158,164
Gross profit 138,836
Operating expenses 63,700
Pretax earnings 75,136
Income tax expense (40%) 30,054
Net earnings $ 45,082


Assume that you have been asked to restate the 2020 financial statements to incorporate the LC&NRV inventory valuation rule. You have developed the following data relating to the ending inventory at December 31, 2020:

Acquisition Cost
Item Quantity Unit Total Net Realizable Value
A 3,220 $ 4.70 $ 15,134 $ 5.70
B 1,670 6.70 11,189 5.20
C 7,270 3.20 23,264 5.20
D 3,370 7.70 25,949 5.70
$ 75,536

1. Restate the statement of earnings to reflect the valuation of the ending inventory on December 31, 2020, at the LC&NRV. Apply the LC&NRV rule on an item-by-item basis.(FINISHED BELOW ANSWER QUESTION 2)

SMART COMPANY
Statement of Earnings (LC&NRV Basis)
For the Year Ended December 31, 2020
Sales revenue $297,000
Cost of sales:
Beginning inventory $32,700
Purchases 201,000
Cost of goods available for sale 233,700
Ending inventory 66,291
Cost of sales 167,409
Gross profit 129,591
Operating expense 63,700
Pretax earnings 65,891
Income tax expense 26,356
Net earnings $39,535

2. Compare and explain the LC&NRV effect on each amount that was changed in part 1. (Negative answers should be indicated by a minus sign.)

In: Accounting

Allied Tech Company, Inc. is a leading manufacturer of robotics, and the company owns several cutting-edge...

Allied Tech Company, Inc. is a leading manufacturer of robotics, and the company owns several cutting-edge patents on artificial intelligence. Mr. Jenkins, the CEO of Allied Tech said he believed the long-term growth (aka, terminal growth) rate of his company is 28%. The rationale behind his statement is his belief in the long-term growth prospects for artificial intelligence and robotics. Is the 28% long-term growth rate reasonable given his firm’s potential prospects? Why or why not? If you believe there is not enough information to answer the question, please explain why you think there is not enough information.

In: Finance

Burnt Company prints textbooks for sale to colleges. Currently, the company is operating at 80 percent...

Burnt Company prints textbooks for sale to colleges. Currently, the company is operating at 80 percent of capacity. A large university has offered to buy 1,200 textbooks as long as the cover of the book can be customized with the university’s logo. While the normal selling price is $175 per textbook, the university has offered only $125 per textbook. Burnt Company can accommodate the special order without affecting current sales.

Unit cost information for a textbook is as follows:

Direct Materials $ 9.31

Direct Labor 9.65

Variable Overhead 6.43

Fixed Overhead 47.00

Total Unit Cost $72.39

Fixed overhead is $822,000 per year and will not be affected by the special order. Normally, there is a commission of 3.5 percent of price; this will not be paid on the special order. The special order will require additional fixed costs of $42,550 for the design and setup of the logo on each textbook.

Part A List the alternatives being considered.

Part B Which alternative is more cost effective and by how much?

Part C What if Burnt Company was operating at capacity and accepting the special order would require rejecting an equivalent number of textbooks sold to existing customers? Which alternative would be better? Explain.

In: Accounting

A manufacturer of fabricated metal products has acquired a new plasma table for $37,000. It is...

A manufacturer of fabricated metal products has acquired a new plasma table for $37,000. It is projected that the acquisition of this equipment will increase revenue by $10,000 per year. Operating costs for the machine will average $2,600 per year. The machine will be depreciated using the MACRS method, with a recovery period of 7 years. The company uses an after-tax MARR rate of 10% and has an effective tax rate of 30%.

2. Now, suppose that the duration of the project is six years and that an estimate of the value of the equipment cannot be obtained from the marketplace.

2.5. What conclusion can be drawn by comparing the results of the before- and after-tax analyses?

In: Finance

At 31 July 20X6, Helios International had non-current assets which had cost $310,000. At the same...

At 31 July 20X6, Helios International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7, but acquired an asset at a cost of $79,200 on 1 January 20X7. Helios International depreciates non-current assets at a rate of 25% per annum. What is the company’s depreciation charge for the year to 31 July 20X7 using:

a. The straight line method

b. The reducing balance method Assume that depreciation is charged from the first year of acquisition.

In: Accounting