The traditional view of leaders “as special people who set the direction, make the key decisions, and energize the troops” is deeply rooted in an individualistic and non-systemic world view. Especially in the West, leaders are great men and women who rise to the fore in times of crisis. So long as these myths prevail, they reinforce a focus on short-term events and charismatic heroes rather than on systemic forces and collective learning. Leadership should center on subtler and ultimately more important work. Leaders should be designers, teachers, and stewards. These roles require new skills: the ability to build shared vision, to bring to the surface and challenge prevailing mental models, and to foster more systemic patterns of thinking. In short, leaders are responsible for building organizations where people are continually expanding their capabilities to shape their future, that is, leaders are responsible for learning.” Do you agree or disagree with these statements by Peter Senge.

Technology has changed many things about the way that the world lives, works, produces things, and runs. The energy industry has been significantly impacted by the development of renewable energy harnessing. For this discussion, analyze 2 of the attached articles, and provide a logical discussion about the coal industry and how it is being replaced due to technology.

Unit 5 Coal Losses Offset Elsewhere Article.pdf

Unit 5 2017 US Energy and Jobs Report_0.pdf

Unit 5 2017 US Energy and Jobs Report State Charts 2_0.pdf

Support your discussion with data from the article and from other sources if you would like. Analyze the impact of renewable technology on the economy, the collective issues that are impacted by these new technologies, and the global renewable energy revolution. Provide at least 2 resources in APA format.

To compare the effectiveness of a media campaign - via radio ads, billboards, and ads on social media websites - to reduce the incidence of impaired driving, a police chief inspected data from 60 randomly chosen CheckStops at varying locations.Thirty of these were before the launch of this campaign, 30 were after the media campaign had been running for a months time. Use α=0.05α=0.05 for all calculations.

For each CheckStop randomly chosen, the number of people charged with impaired driving was recorded:
Prior: 8, 11, 10, 4, 9, 6, 4, 9, 3, 10, 2, 9, 4, 6, 5, 4, 1, 8, 5, 7, 3, 7, 4, 8, 4, 11, 4, 8, 3, 9
After: 8, 3, 3, 3, 5, 2, 7, 6, 6, 5, 3, 9, 7, 8, 7, 5, 6, 5, 4, 3, 5, 3, 4, 3, 3, 4, 6, 4, 8, 4

Let μBeforeμBefore represent the mean number of impaired driving charges at a checkstop prior to the launch of the campaign, and μAfterμAfter be the mean number of impaired driving charges at a checkstop after the campaign has been running for a month.

(a) Does this data suggest that the variation in the number of impaired driving charges before the campaign is equal to the variation in the number of impaired driving charges after the campaign has been running for a month?
From the appropriate statistical test, find the value of the test statistic. Using at least two decimals in your answer.
Test Statistic =

(b) Report the p-value of the test you ran in (a), using at least three decimals in your answer.

(c) find a 95% confidence interval for the difference between the mean number of impaired driving charges before the media campaign and the mean number of impaired driving charges after the media campaign has been running for a month, μBefore−μAfterμBefore−μAfter.

Below are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019,

Additional information:

• On December 31, 2019, Sullivan acquired 25% of Myers Co.'s common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year.
• During 2020, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2020.
• On 1/2/2020, Sullivan sold equipment costing $60,000 (adj basis $38,000) for $40,000 cash.
• On December 31, 2020, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2021.
• Net income for 2020 was $370,000.
• Sullivan declared and paid the following cash dividends for 2020 and 2019.

2020                 2019

$80,000             $100,000

Declared           12/15/2020                  12/15/2019

Paid                     2/28/2021                     2/28/2020

Required: Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2020, using the indirect method.

1/1/2020: Opened the business, invested $1,000,000 cash in the business.

1/1/2020: bought a building for the business purpose for $100,000 cash. The building has a useful economic life of 10 years.

1/1/2020: purchased 100 luxury watches for $200,000 with $100,000 cash payment, the remaining amount payable on 2/1/2021. (each watch costs $2,000)

3/1/2020: purchased 50 luxury watches for $250,000 with cash. Each watch costs $5,000.

4/1/2020: purchased 40 luxury watches for $240,000 with cash. Each costs $6,000.

6/1/2020: Sold 130 watched for $1,300,000. Of which $300,000 cash was received at the time of sale. The remaining amount to be received on 5/2/2021.

7/1/2020: paid $1,200 in advance for 12 months’ property insurance (7/1/20 to 7/1/21).

8/1/2020: borrowed $500,000 from a local Chase bank. Interest rate is 12%/year. Interest is paid every 6 months- the first payment date is 2/1/2021. Principal would be paid on 8/1/2021.

9/1/2020: to expand business, you rent a showroom in the next building. Paid $24,000 cash in advance for 12 month’s rent.

12/31/2020: Paid 2020 utilities expense, advertising expense, and miscellaneous expense for $5000, $15,000, and $4,000, respectively.

Salary is paid on the last day of each month. Each month’s salary expense is $20,000.

Notes:

• On 12/31/2020: Physical inventory showed that there were 60 luxury watches on hand at the end of the period. The company used periodic inventory system, and used FIFO costing method.
• Your business used straight-line depreciation method for all fixed assets.
• Ignore tax.

Requirement:

1. Prepare all journal entries, adjusting entries, closing entries needed for the period ending on 12/31/2020 based on above economic events

Banks are financing acquisition projects, i.e. for Venture Capital funds. An exemplary project shows the following data:

            A VC fund purchased the target company on 1.1.2020 for a price of €300k at a Price/EBIT-multiple of 7.5x. 40% of the purchase price is funded by equity of the VC, remaining amount by bank loan at an interest of 10% p.a., collateralized by the shares of the target company. The loan will be repaid on 31.12.2023, accrual for loan repayment is planned pro rata annually. All cash flows related to the purchase will be pushed down into the target company’s P&L.
            The target company runs operationally at annual revenues of €150k in 2020, growing each upcoming year at 4%, while operational costs in 2020 are at €-110k at a future growth rate of 2% year-on-year. In 2020, EBIT is €40k. Operational interest is at €-6.0k (and will be stable for the upcoming years). Tax rate is 30%. There are no other operational P/L impacts.
            The VC plans to sell the company on 31.12.2025 (= after 6 years) at a Price/EBIT-multiple of 7.5x which was the same at purchase.

Please complete the financial model of the transaction based on the xls-table below. In case of lack of data, please take a reasonable assumption for your subsequent calculation. Please calculate the planned annual profitability of the VC fund and the overall internal rate of return. As the financing bank, what is your recommendation in respect to the transaction and its risks and benefits?

Transaction data

Purchase price                  300€

Equity                                 120€

Debt capital                       180€

Term dept                   4 years bullet repayment

Annual debt accrual          45.0€

Interest rate                      10.0%

Tax rate                             30%

Target company                 2020           2021        2022        2023         2024         2025

Revenues                           150,0

Cost operational                -110,0

EBIT                                   40,0

Interest operational           -6.0

Taxes                                 -10,2

PBT                                     23,8

Johnson Transformers Inc.

Following is the seven-year forecast for a new venture called Johnson Transformers: (all amounts in $000)

Beginning after year 2026 the annual growth in EBIT is expected to be 1.5%, a rate that is projected to be constant over Johnson Transformers remaining life as an enterprise.   Beginning in 2026 Johnson's Transformers capital expenditures and depreciation are expected to offset each other (capex - depreciation = 0) and year to year changes in working capital are expected to be zero (working capital levels remain constant year over year). For discounting purposes consider 2020 as year 1.

Assume a tax rate is 21% and a cost of capital of 7.75%

Question 1: Determine the NPV of Johnson Transformers Free Cash Flow for the years 2020 -2026. HINT: Remember to account for loss carry-forwards when determining income taxes. The answer to this question was determined in Excel. Your answer may deviate slightly depending upon differences in truncation and rounding. Answers below are in $000.

Answer: $2105

Calculate the fair market value (NPV) for Johnson Transformers. For this problem assume that the Net Present Value of Johnson Transformers free cash flow for the period 2020 - 2026 is $3000 (NOTE its not $3000 but make this assumption in case the answer you determined in the first question was incorrect. Assume no underlying changes to any of the data in the problem. DO NOT USE YOUR ANSWER FROM THE QUESTION ABOVE. All ANSWERS ARE IN $000

Part 1

Johnson Transformers Inc. Following is the seven-year forecast for a new venture called Johnson Transformers: (all amounts in $000) 2020 2021 2022 2023 2024 2025 2026 EBIT $(1000) $(900) $200 $1,200 $2,500 $3000 $3,050 Capital Expenditures $550 $350 $200 $175 $175 $160 $150 Changes in Working Capital $400 $300 $200 $100 $100 ($100) ($100) Depreciation $40 $80 $125 $150 $150 $150 $150 Beginning after year 2026 the annual growth in EBIT is expected to be 1.5%, a rate that is projected to be constant over Johnson Transformers remaining life as an enterprise. Beginning in 2026 Johnson's Transformers capital expenditures and depreciation are expected to offset each other (capex - depreciation = 0) and year to year changes in working capital are expected to be zero (working capital levels remain constant year over year). For discounting purposes consider 2020 as year 1. Assume a tax rate is 21% and a cost of capital of 7.75% Question 1: Determine the NPV of Johnson Transformers Free Cash Flow for the years 2020 -2026. HINT: Remember to account for loss carry-forwards when determining income taxes. The answer to this question was determined in Excel. Your answer may deviate slightly depending upon differences in truncation and rounding. Answers below are in $000.

Part 2

Calculate the fair market value (NPV) for Johnson Transformers. For this problem assume that the Net Present Value of Johnson Transformers free cash flow for the period 2020 - 2026 is $3000 (NOTE its not $3000 but make this assumption in case the answer you determined in the first question was incorrect. Assume no underlying changes to any of the data in the problem. DO NOT USE YOUR ANSWER FROM THE QUESTION ABOVE. All ANSWERS ARE IN $000

Railback Battery Systems Following is the seven-year forecast for a new venture called Railback Battery Systems:

Part 1:

Beginning after year 2026 the annual growth in EBIT is expected to be 1.5%, a rate that is projected to be constant over Railback's life as an enterprise. Beginning in 2026 Railback's capital expenditures and depreciation are expected to offset each other (capex - depreciation = 0) and year to year changes in working capital are expected to be zero (working capital levels remain constant year over year). For discounting purposes consider 2020 as year 1. Assume a tax rate is 21% and a cost of capital of 7.75% Question: Determine the NPV of Railback Battery Systems Free Cash Flow for the years 2020 - 2026. HINT: Remember to account for loss carry-forwards when determining income taxes. The answer to this question was determined in Excel. Your answer may deviate slightly depending upon differences in truncation and rounding. Answers below are in $000.

Part 2:

Calculate the fair market value (NPV) for Railback Battery Systems. For this problem assume that the Net Present Value of Railback's free cash flow for the period 2020 - 2026 is $3000 (NOTE its not $3000 but make this assumption in case the answer you determined in the first question was incorrect. Assume no underlying changes to any of the data in the problem. DO NOT USE YOUR ANSWER FROM THE QUESTION ABOVE. All ANSWERS ARE IN $000