White Waters Inc. plans a 4-year capital investment project, where it requires an asset that costs $160,000. The asset will be depreciated using the 3-year MACRS (use these schedule: 33%, 44%, 14%, and 7% for years 1 to 4, respectively). The company expects that the asset will be worth $30,000 at the end of the project. Incremental sales are expected to be $90,000, $120,000, $130,000 and $150,000 for year 1 to 4, respectively. Corresponding variable expenses are expected to be 40% of the sales, and the fixed costs are $25,000 a year. The company will need to invest $14,000 at time-0 in net working capital, which will increase $1,000 each year. The cost of capital is 14% and the corporate tax rate is 30%, white waters will have to use a building that it bought 15 years ago for $150,000. This building could generate lease income of $20,000 a year if the project is not undertaken. It also spent $80,000 in R&D to develop the new product for this project. To partly finance the project, the company plans to borrow $100,000 at a 10% interest rate for the duration of the project. Develop the cash flows for the project. What are its NPV, IRR, and MIRR? Interpret the results in your own words. For grading details, please see the associated rubric. ***Use Word. You must show your work.

The Asian Carp Corp. (ACC) has developed a new line of spinning reel it plans to produce and sell in the United States. The cost of the necessary equipment will be $835,000 plus $37,000 for installation and delivery. The equipment falls into the MACRS 5-year class. The equipment will be scrapped in 5 years for an estimated $100,000. ACC estimates that sales in the first year of production will be $750,000, and due to intense marketing and word-of-mouth advertising, they believe sales will double in the second year. Sales are estimated to grow at 20% in the third year and 10% in the fourth year. Sales in year 5 will be the same as in year 4. Thereafter, the market will be saturated for this project and they will have to think of something new. Production costs will be $55,000 in fixed costs plus 70% of sales in variable operating costs. Net operating working capital requirements will be 4% of the increase in sales in the following year. If ACC is in the 40% tax bracket, calculate the initial cash outlay, operating cash flows in years 1 and 2, and the terminal cash flows for this project. Also calculate the project’s Net Present Value and Modified Internal Rate of Return assuming ACC has a 12% cost of capital and that operating cash flows in years 3, 4, and 5 are $350,770, $363,582 and $363,582 respectively. Should the project be accepted?  

Week 4 Project

Instructions

Before beginning work on this assignment, please review the expanded grading rubric for specific instructions relating to content and formatting. Long-Term Care Reimbursement The federal and state governments are the largest payers of health care services in the United States. The largest federal programs are the Medicare and Medicaid services.

Using the information from the textbooks, lectures, and Internet resources, provide a brief summary of Medicare and Medicaid services in a Microsoft Word document.

To get up-to-date information on the programs, review the information shared on the following websites:

The Centers for Medicare and Medicaid Services

The Social Security Administration In your summary, include the following points:

- An overview of the different Medicare and Medicaid services

- The population covered under Medicare and Medicaid services

- The services of long-term care covered under Medicare and Medicaid,

- including the restrictions placed on them

To support your work, use your course and textbook readings and also use the South University Online Library.

As in all assignments, cite your sources in your work and provide references for the citations in APA format. Submission Details: Your assignment should be addressed in a 2- to 3-page document.

Submit your document to the Submissions Area by the due date assigned.

Due Date Jun 6, 2018 11:59 PM

The notes to financial statements present information on significant accounting policies, complex or special transactions, details of reported amounts, commitments, contingencies, segments, quarterly data, and subsequent events. Indicate which type of note disclosure is illustrated by each of the following notes:

a. The company has agreed to purchase seven EMB-120 aircraft and related spare parts. The aggregate cost of these aircraft is approximately $52,000,150, subject to a cost escalation provision. The aircraft are scheduled to be delivered over the next two fiscal years.

b. The company has deferred certain costs related to major accounting and information systems enhancements that are anticipated to benefit future years. Upon completion, the related cost is amortized over a period not exceeding five years.

c. The company has guaranteed loans and leases of independent distributors approximating $27,500,000 as of December 31 of the current year.

d. An officer of the company is also a director of a major raw material supplier of the company. The amount of raw material purchases from this supplier approximated $595,000 in the current year.

The word bank is the same for each question:

A. Commitment

B. Complex or special transaction

C. Contingency

D. Details of a reported amount

E. Quarterly Data

F. Segment

G. Significant accounting policy

H. Subsequent event

Being an auditor You have recently graduated from your university and started work with an accounting firm. You meet an old school friend, Kim, for dinner—you haven’t seen each other for several years. Kim is surprised that you are now working as an auditor because your childhood dream was to be a ballet dancer. Unfortunately, your knees were damaged in a fall and you can no longer dance. The conversation turns to your work and Kim wants to know how you do your job. Kim cannot understand why an audit is not a guarantee the company will succeed. Kim also thinks that company managers will lie to you to protect themselves, and as an auditor you would have to assume that you cannot believe anything a company manager says to you.

Required: Compose a letter to Kim explaining the concept of reasonable assurance, and how reasonable assurance is determined. Explain why an auditor cannot offer absolute assurance. Describe the concept of professional skepticism and how it is not the same as assuming that managers are always trying to deceive auditors. Explain to Kim why her perceptions are a perfect example of the expectations gap.

**For Accounting - Audit Class. Please write a short essay on the above. Please type your word. Do not send a picture or your handwriting.

Scenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary's ideas but concerned about the effects these changes will have on the break-even point and the margin of safety.

Complete the following:

Compute the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used.

Compute the margin of safety ratio for current operations and after Mary's changes are introduced (Round to nearest full percent).

Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary's changes are introduced.

Prepare a maximum 250-word paper including the answers to the questions above with supporting calculations for management addressing Mary's suggested changes. Explain whether Mary's changes should be adopted. Why or why not? Analyze the above information (three bullet points above) and use this information to support your suggestion.

You should try this code in Microsoft SQL Server to get the practice of using the command line and getting syntax errors. You can submit to me your sql files or just copy and paste of your code in a word document. I may try to run it, so make sure it is error free. Or you can show screen shots of code running.

1. Write SQL CREATE Table statement to create the following table with  Owner ID  as a surrogate key.  Owner ID is a surrogate key (starts at 1 and increments by 1)

hint: IDENTITY (1, 1) is syntax for surrogate key.

PET_OWNER (OwnerID, OwnerLastName, OwnerFirstName, OwnerPhone, OwnerEmail)

You can try inserting some data into your tables too!

2. Write SQL CREATE Table statement to create the following table with  Pet ID as a surrogate key.  Pet ID is a surrogate key (starts at 1 and increments by 1)

hint: IDENTITY (1, 1) syntax for surrrogate key..

PET (PetID, PetName, PetType, PetBreed, PetDOB, OwnerID)

You don’t need to create referential integrity constraint on OwnerID in PET table.

3. Now create the referential integrity constraint on OwnerID in PET. You can use ALTER TABLE command.

5. You are evaluating a firm’s shares which are currently sold for $22 for investment. You are using 10% of the margin of safety that is applied to the value per share. Use the following information. Last year the firm posted sales of $500 million. You expect sales to grow at 10 percent for 3 years and 8 percent for another two years before the firm matures with a sales growth rate of about 4%. Assume that the company currently has 25% operating margin which will increase to 27% in year 3 and after. Corporate tax rate and will remain at the current rate of 25%. Interest is paid at after-tax cost of debt rate of 5%. The company has $250 million debt which is a quarter of assets. Use CAPM to calculate the company’s cost of equity (Risk free rate is 2%, market risk premium is 8% and the company’s equity beta is 1.20). Capital expenditures will be 10% of sales and depreciation will be 1% of sales every year. Company also invests 0.5% of sales in expanding net working capital every year. The number of shares outstanding is 30 million. Would you invest in this stock? Solve the problem in Excel and copy-paste your tables to your word document – make sure they are organized, properly labeled and readable. (25 points)

You should try this code in Microsoft SQL Server to get the practice of using the command line and getting syntax errors. You can submit to me your sql files or just copy and paste of your code in a word document. I may try to run it, so make sure it is error free. Or you can show screen shots of code running.

1. Write SQL CREATE Table statement to create the following table with  Owner ID  as a surrogate key.  Owner ID is a surrogate key (starts at 1 and increments by 1)

hint: IDENTITY (1, 1) is syntax for surrogate key.

PET_OWNER (OwnerID, OwnerLastName, OwnerFirstName, OwnerPhone, OwnerEmail)

You can try inserting some data into your tables too!

2. Write SQL CREATE Table statement to create the following table with  Pet ID as a surrogate key.  Pet ID is a surrogate key (starts at 1 and increments by 1)

hint: IDENTITY (1, 1) syntax for surrrogate key..

PET (PetID, PetName, PetType, PetBreed, PetDOB, OwnerID)

You don’t need to create referential integrity constraint on OwnerID in PET table.

3. Now create the referential integrity constraint on OwnerID in PET. You can use ALTER TABLE command.

Measuring the Economy’s Performance For this assignment, you should use the information in the textbook and the information found on the official government website: www.bea.gov/index.htm Based on the information contained in the textbook and on the Web site above, answer the following questions: What does gross domestic product (GDP) tell us? How did GDP change from 2008? What caused these changes? What is real GDP? What was real GDP in 2008 and has it changed since 2008? What was national income (NI) for 2008? What does national income tell us? What is the difference between GDP and NI? How has NI changed since 2008? What caused these changes? What was disposable income (DI) for 2009? What does disposable income consist of? How did DI change from 2008? What caused these changes? Does GDP measure the well-being of society? Why or why not? What was GDP in 2008 (sometimes called GSP) for your state? How does your state rate when compared to other states? Submission Details: Submit a 4 to 6 page Microsoft Word document, using APA style. Name your document SU_ECO2072_W2_ LastName_FirstInitial Submit your document to the Submissions Area by the due date assigned.