Two companies, Energen and Hastings Corporation, began operations with identical balance sheets. A year later, both required additional fixed assets at a cost of $25,000. Energen obtained a 5-year, $25,000 loan at a 9% interest rate from its bank. Hastings, on the other hand, decided to lease the required $25,000 capacity for 5 years, and a 9% return was built into the lease. The balance sheet for each company, before the asset increases, follows: Current assets $25,000 Debt $50,000 Fixed assets 125,000 Equity 100,000 Total assets $150,000 Total claims $150,000 Show the balance sheets for both firms after the asset increases, and calculate each firm's new debt ratio. (Assume that the lease is not capitalized.) Round the debt ratios to the nearest whole percentage.

Energen Balance Sheet (Owns new assets) Current assets $ Debt $ Fixed assets Equity Total assets $ Total claims $ Debt ratio = % Hastings Corporation Balance Sheet (Leases as operating lease) Current assets $ Debt $ Fixed assets Equity Total assets $ Total claims $ Debt ratio = % Show how Hastings's balance sheet would look immediately after the financing if it capitalized the lease. Round the debt ratio to the nearest whole percentage. Hastings Corporation Balance Sheet (Capitalizes lease) Current assets $ Debt $ Value of leased asset Lease Obligation Fixed assets Equity Total assets $ Total claims $ Debt ratio = %

Consider Ace Rent-A-Car, a nationwide automobile rental company. For each car that the company owns, Ace records its unique vehicle identification number (VIN), its “make” (manufacturer), model, year of manufacture, and the manufacturer’s factory in which it was made. Each factory is identified by the combination of its company name (i.e. manufacturer name) and the city in which it is located. We also know its size and the year it was built. Each manufacturer is identified by its unique name, plus its headquarters city and the name of its president. Customers are identified by a unique customer number, plus Ace wants to store each customer’s name, address, and telephone number. Each Ace rental location has a unique rental location number, address, and telephone number. Each Ace rental location is assigned to an Ace region, which has a unique region name, a manager, and the location of the main regional office.

Ace wants to develop a data warehouse to store its historical rental data. For each rental, Ace wants to record which customer rented which car from which rental location and when the rental began and when it ended. Ace also wants to record the mileage on the car when the rental began, the mileage when it was returned, whether or not the customer bought the insurance that Ace offered, and the total cost of the rental.

Given this scenario, develop a star schema, which may be a snowflake schema, for Ace’s data warehouse.

QUESTION 1

Michael Douglas is the plant manager for a supplier of axles and other components for SUVs produced by one of domestic automobile manufacturers. His company had been using traditional batch production methods, but as the industry has become more competitive, and customers have been demanding just-in-time deliveries, Michael realized that he must make the transition to a JIT operating environment to improve speed and response, as well as reduce cost to help sustain their current competitive advantage. Douglas is well aware of Toyota’s reputation for lean enterprise, and decided to make a benchmarking trip to the Toyota Motor Manufacturing (TMM) plant in Long Beach, California to learn about their JIT processes. During his trip back from Toyota, Douglas began thinking of what he needed to do to plan for implementing JIT in his factory. The case provides a framework to discuss the many concepts and methods upon which JIT is built. Douglas’s task of moving from a batch process to a JIT system is immense and requires a long-term commitment from all managers above and below him in the organization's hierarchy.

a) What lessons did Douglas learn from his benchmarking trip to Toyota?                            

b) What significant challenges or barriers might he face in his plant if he implemented JIT?

c) What should he tell his managers and workers tomorrow?                                                  

d) Develop a plan to implement JIT with an emphasis on what to do early in the JIT initiative.

Jack MacLean has entered into a real estate development partnership with Bill Lyons and June Reese. Bill owns one-fifth of the partnership, while June has a one-fourth interest. The partners will divide all profits on the basis of their fractional ownership. The partnership bought 900 acres of land and plans to subdivide each lot into 2.5 acres. Homes in the area have been selling for $250,000. By time of completion, Jack estimates the price of each home will increase by one-fifth of the current value. The partners sent a survey to 21,000 potential customers to see whether they should heat the homes with oil or gas. One-fifth of the customers responded by indicating a 5-to-1 preference for oil. From the results of the survey, Jack now plans to install a 270-gallon oil tank at each home. He estimates that each home will need five fills per year. The current price of home heating fuel is $3 per gallon. The partnership estimates its profit per home will be one-tenth of the selling price of each home. (Do not round intermediate calculations.) a. Calculate the number of homes to be built. b. Calculate the selling price of each home. c. Calculate the number of people responding to survey. d. Calculate the number of people desiring oil. e. Calculate the average monthly cost per house to heat using oil. (Round your answer to 2 decimal places.) f. Calculate the amount of profit Jack will receive from the sale of homes.

To-Air-is-Human, Inc. (TAH) manufactures lightweight unpowered and human-powered aircraft. They have decided to produce a brand-new low-cost two-seater glider kit for the consumer market, which they will sell direct to the consumer.  They will have a dedicated facility that they rent for $100,000 for the year. They will also rent two large molding machines for fabrication of the glider hull at $4500 apiece. The production line will be manned by four skilled workers, whose salaries total $115,000 for the year. Hull parts will total 680 lbs. of high-grade aluminum, which may be purchased at a delivered price of $2300/ton. Other parts will be contracted for inclusion in the kit: four windows per plane at $95 per window, two padded seats (with built-in seat assembly) at $110 apiece, steering mechanism at $225, all ailerons and louvers in a set for $400, and fixed landing gear for $175. The crate for shipping the product costs $40 for a single kit, and all shipping costs are assumed by the consumer. Advertising in a glider enthusiast magazine costs $500 for the year.  The advertised price will be $6999. How many glider kits does TAH have to sell in order to break even?

Follow up question: Neiman-Marcus wants to sell the TAH glider exclusively through their upscale Christmas catalog, and is willing to buy 120 of them from TAH, if TAH will chip in $16,000 for the catalog distribution. If all other parameters (except Q , of course, and the fact that they would no longer advertise in the magazine) from part A are the same, what breakeven price should TAH charge Neiman Marcus?

Karl Kruger is a 38 year-old single Australian resident taxpayer. During the 2017/18 tax year, Karl received and retained the following records:

Other Information:

• Karl’s rental property was built in 1999 when total construction costs of $200,000 were incurred. Karl has owned and leased the property since 2009.
• Karl made mortgage repayments on his rental property of $20,000, of which $12,100 was principal.
• Karl also sold the following assets during the year:

require : Prepare a statement calculating Karl’s tax payable/refundable.

Two textile companies, McNulty-Grunewald Manufacturing and Jackson-Kenny Mills, began operations with identical balance sheets. A year later both required additional manufacturing capacity at a cost of $150,000. McNulty-Grunewald obtained a 5-year, $150,000 loan at a 7% interest rate from its bank. Jackson-Kenny, on the other hand, decided to lease the required $150,000 capacity from National Leasing for 5 years; a 7% return was built into the lease. The balance sheet for each company, before the asset increase, is as follows:
Debt $150,000

Equity 150,000

Total assets $300,000

Total liabilities

equity $300,000

Show the balance sheet of each firm after the asset increase, and calculate each firm's new debt ratio. (Assume that Jackson-Kenny's lease is kept off the balance sheet.) Round the monetary values to the nearest dollar and percentage values to the nearest whole number.

Show how Jackson-Kenny's balance sheet would have looked immediately after the financing if had capitalized the lease. Round the monetary values to the nearest dollar and the percentage value to the nearest whole number.

Would the rate of return (1) on assets and (2) on equity be affected by the choice of financing? If so, how? ROA affected by the choice of financing. ROE affected by the choice of financing. Net income might well be under leasing because the lease payment might be larger than the interest expense plus reported depreciation. Additionally, total assets are under leasing without capitalization.

Consider Ace Rent-A-Car, a nationwide automobile rental company. For each car that the company owns, Ace records its unique vehicle identification number (VIN), its “make” (manufacturer), model, year of manufacture, and the manufacturer’s factory in which it was made. Each factory is identified by the combination of its company name (i.e. manufacturer name) and the city in which it is located. We also know its size and the year it was built. Each manufacturer is identified by its unique name, plus its headquarters city and the name of its president. Customers are identified by a unique customer number, plus Ace wants to store each customer’s name, address, and telephone number. Each Ace rental location has a unique rental location number, address, and telephone number. Each Ace rental location is assigned to an Ace region, which has a unique region name, a manager, and the location of the main regional office. Ace wants to develop a data warehouse to store its historical rental data. For each rental, Ace wants to record which customer rented which car from which rental location and when the rental began and when it ended. Ace also wants to record the mileage on the car when the rental began, the mileage when it was returned, whether or not the customer bought the insurance that Ace offered, and the total cost of the rental.

Given this scenario, develop a star schema, which may be a snowflake schema, for Ace’s data warehouse.

Please give a brief justification for the correct answer you select:

1. Macroeconomics is concerned with

1. Only long-run trends in economic activity.
2. Only short-run fluctuations in the business cycle.
3. Both long-run trends and short-term fluctuations in economic activity.
4. Only with changes in overall price level.

2. Which one of the following is not a reason for a country collecting national income statistics?

1. to calculate changes in the cost of living
2. to estimate the rate of economic growth
3. to calculate changes in the standard of living
4. to compare standards of living between countries

3. An example of a transfer payment is:
   1. An interest payment on a General Motors’ bond
   2. The added value of stock from the time it was bought to the time it was sold
   3. A Social Security retirement benefit
   4. The salary paid to a member of the armed forces

4. The service a baby-sitter performs when she stays at home with her baby brother

      while her parents are out and she is not paid for it, is excluded from the National

      Income because:

A)   This is a nonmarket transaction

B)    This is a nonproduction activity

C)   This is a noninvestment transaction

D) Double counting would be involved

5. Which of the following represents a leakage from the circular flow?
   1. Exports
   2. Investment
   3. Interest paid on bank loans
   4. Imports

6. Which of the following would NOT be counted in 2003’s GDP?

1. The value of a 2001 car you purchase from a car dealer in 2003.
2. The 2003 salary of a used car salesperson.
3. The commissions earned by a real estate agent in selling houses built prior to 2003.
4. The value of a computer manufactured in 2003 but not sold in 2003.