O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, O’Brien produced 100,000 units and sold 79,000 units. During its second year of operations, it produced 79,000 units and sold 95,000 units. In its third year, O’Brien produced 83,000 units and sold 78,000 units. The selling price of the company’s product is $77 per unit.

Required:

1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 25 Direct labor $ 12 Variable manufacturing overhead $ 4 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 480,000 Fixed selling and administrative expenses $ 360,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company’s product is $57 per unit. Required:

1. Compute the company’s break-even point in units sold.

2. Assume the company uses variable costing: a.Compute the unit product cost for year 1, year 2, and year 3. b. Prepare an income statement for year 1, year 2, and year 3.

3. Assume the company uses absorption costing: a. Compute the unit product cost for year 1, year 2, and year 3. (Round your intermediate and final answers to 2 decimal places.)

b. Prepare an income statement for year 1, year 2, and year 3. (Round your intermediate calculations to 2 decimal places.)

Calculate the depreciation for the following scenarios.  Bought a piece of equipment costing $30,000, with a salvage value of $10,000.

a) Figure the SL depreciation for year one and year two.  Assuming a 10 year useful life.

b) Figure the units of production (activity) depreciation.  Assuming that total units will be 100,000.

                    Year 1 – 20,000 units

                    Year 2 -  30,000 units

c)Figure the double declining balance depreciation for year one and year two.  Assuming a 4 year life.

d) Figure the SL depreciation; assuming a 10 year life; if the equipment was purchased on July 1^st.

e) Prepare the Journal Entry for a (SL Depreciation)

Calculate the depreciation for the following scenarios.  Bought a piece of equipment costing $30,000, with a salvage value of $10,000.

a) Figure the SL depreciation for year one and year two.  Assuming a 10 year useful life.

b) Figure the units of production (activity) depreciation.  Assuming that total units will be 100,000.

                    Year 1 – 20,000 units

                    Year 2 -  30,000 units

c)Figure the double declining balance depreciation for year one and year two.  Assuming a 4 year life.

d) Figure the SL depreciation; assuming a 10 year life; if the equipment was purchased on July 1^st.

e) Prepare the Journal Entry for a (SL Depreciation)

Jessica is a one-third owner in Bikes-R-Us, an S corporation that experienced a $51,900 loss this year (year 1). Assume her stock basis is $12,760 at the beginning of the year and that at the beginning of year 1 Jessica loaned Bikes-R-Us $3,690. In year 2, Bikes-R-Us reported ordinary income of $13,380. (Leave no answer blank. Enter zero if applicable.)

Required:

1. What amount is Jessica allowed to deduct in year 1 and year 2?
2. What are her stock and debt bases in the corporation at the end of year 1?
3. What are her stock and debt bases in the corporation at the end of year 2?

ROI

EPS

EBITDA

NOPAT

Consistent improvement in EPS year after year is the indication of continuous improvement in the company’s earning power.

Consistent improvement in EPS year after year is the indication of continuous decline in the company’s earning power.

Consistent improvement in EPS year after year is the indication of fraud within the company.

Consistent improvement in EPS year after year is the indication that the company will never suffer a year of net loss rather than net income.

Calculate the depreciation for the following scenarios. Bought a piece of equipment costing $30,000, with a salvage value of $10,000.

a) Figure the SL depreciation for year one and year two. Assuming a 10 year useful life.

b) Figure the units of production (activity) depreciation. Assuming that total units will be 100,000.

Year 1 – 20,000 units

   Year 2 - 30,000 units

c)Figure the double declining balance depreciation for year one and year two. Assuming a 4 year life.

d) Figure the SL depreciation; assuming a 10 year life; if the equipment was purchased on July 1^st.

e) Prepare the Journal Entry for a (SL Depreciation)

GUI company is considering investing in Project A or Project B. Project A generates the following cash flows: year “zero” = 313 dollars (outflow); year 1 = 297 dollars (inflow); year 2 = 337 dollars (inflow); year 3 = 330 dollars (inflow); year 4 = 149 dollars (inflow). Project B generates the following cash flows: year “zero” = 510 dollars (outflow); year 1 = 140 dollars (inflow); year 2 = 110 dollars (inflow); year 3 = 210 dollars (inflow); year 4 = 140 dollars (inflow). The MARR is 10%. Compute the External Rate of Return (ERR) of the BEST project. (if your answer is 10.25% then write 10.25 as your answer, not 0.1025)

JPMorgan Chase is considering the following mutually exclusive projects: A, B, C, D, and E with the following cash flows:

A: Initial Investment = -$15,000, Year 1 = $20,000, Year 2 = $25,000

B: Initial Investment = -$10,000, Year 1 = $14,000, Year 2 = $20,000

C: Initial Investment = -$12,000, Year 1 = $18,000, Year 2 = $15,000

D: Initial Investment = -$13,000, Year 1 = $22,000, Year 2 = $12,000

E: Initial Investment = -$20,000, Year 1 = $30,000, Year 2 = $15,000

JPMorgan Chase has a cost of capital of 14% p.a. and all these projects are of similar risk. JPMorgan Chase is not capital-rationed. Which project should JPMorgan Chase invest in if they are using the NPV criterion?

Epsilon company is considering investing in Project X or Project Y. Project X generates the following cash flows: year “zero” = 307 dollars (outflow); year 1 = 252 dollars (inflow); year 2 = 265 dollars (inflow); year 3 = 343 dollars (inflow); year 4 = 182 dollars (inflow). Project Y generates the following cash flows: year “zero” = 230 dollars (outflow); year 1 = 120 dollars (inflow); year 2 = 100 dollars (inflow); year 3 = 200 dollars (inflow); year 4 = 120 dollars (inflow). The MARR is 10%. Compute the External Rate of Return (ERR) of the BEST project

PLEASE INCLUDE FORMULAS AND DETAILED STEPS