A duplex is available for purchase near the university. You estimate that you can rent one of the units for $750 and the other for $650 a month. Expenses will be $125 a month. The current sales price is 165,000 and you estimate the property will be worth 360,000 in 10 years. What is your estimated annual IRR for this property?
Answer should be formatted as a percent with 2 decimal places.
What is the estimated annual rate of appreciation in the previous problem?
Answer should be formatted as a percent with 2 decimal places.
In: Finance
What impact do you feel Baby Boomers are going to have on healthcare in the near future? How can we prepare for that?
- Do you think we will have enough staff to take care of this group of Baby Boomers! How are we going to manage that?
- What impact do you feel this may have beyond healthcare to housing, transportation, travel and more?
In: Economics
An African American woman approaches a pharmacist at the local drugstore near the hospital where she was given a prescription for chest congestion. She asks the pharmacist for oils in the store with camphor so she can rub it on her chest to help with her congestion. The pharmacist immediately tells her that to do so would be ridiculous and that she should not proceed with such a remedy but only use the medicine per her prescription. Did the pharmacist handle this communication correctly?
In: Nursing
|
Near the end of 2017, the management of Babalu Musical Instrument Co., a new merchandising company, prepared the following estimated balance sheet for December 31, 2017. |
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BABALU MUSICAL INSTRUMENT COMPANY |
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Assets |
Liabilities and Equity |
||||
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Cash |
$36,000 |
Accounts payable |
$365,000 |
||
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Accounts receivable |
520,000 |
Bank loan payable |
15,000 |
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Inventory |
165,000 |
Taxes payable (due 3/15/2018) |
91,000 |
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Total current assets |
721,000 |
Total liabilities |
$471,000 |
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Equipment |
$538,000 |
Common stock |
474,500 |
||
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Less accumulated depreciation |
67,250 |
470,750 |
Retained earnings |
246,250 |
|
|
Total stockholders' equity |
720,750 |
||||
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Total assets |
$1,191,750 |
Total liabilities and equity |
$1,191,750 |
||
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To prepare a master budget for January, February, and March of 2018, management gathers the following information. |
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a. |
Babalu Musical’s single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 5,500 units on December 31, 2017, is more than management’s desired level for 2018, which is 20% of the next month’s expected sales (in units). Expected sales are: January, 7,250 units; February, 8,750 units; March, 11,500 units; and April, 10,000 units. |
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b. |
Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 70% is collected in the first month after the month of sale and 30% in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February. |
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c. |
Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2017, accounts payable balance, $85,000 is paid in January and the remaining $280,000 is paid in February. |
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d. |
Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per year. |
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e. |
General and administrative salaries are $144,000 per year. Maintenance expense equals $2,200 per month and is paid in cash. |
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f. |
Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $34,000; February, $98,000; and March, $29,500. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s depreciation is taken for the month in which equipment is purchased. |
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g. |
The company plans to acquire land at the end of March at a cost of $145,000, which will be paid with cash on the last day of the month. |
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h. |
Babalu Musical has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $27,588 in each month. |
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i. |
The income tax rate for the company is 30%. Income taxes on the first quarter’s income will not be paid until April 15. |
Requirements:
Prepare a master budget for each of the first three months of 2018; include the following component budgets (show supporting calculations as needed directly behind that budget, and round amounts to the nearest dollar):
1.) Monthly cash budgets.
2.) Budgeted income statement for the entire first quarter (not for each month).
3.) Budgeted balance sheet as of March 31, 2018
In: Finance
The branch manager of a nationwide bookstore chain (located near a college campus) wants to study characteristics of her store’s customers. She decides to focus on two variables: the amount of money spent by customers (on items other than textbooks) and whether the customers would consider purchasing educational DVDs related to graduate preparation exams such as the GMAT, CRE, or LSAT. The results from a sample of 70 customers are as follows: Amount spent; mean = $28.52, standard deviation = $11.39; 28 customers stated that they would consider purchasing the educational DVDs.
a. Construct a 95% confidence interval estimate for the population mean amount spent in the bookstore
b. Construct a 90% confidence interval estimate for the population proportion of customers who would consider purchasing educational DVDs
Assume the branch manager wants to of another store in the chain (also located near a college campus) wants to conduct a similar survey in his store. Answer the following questions:
c. What sample size is needed to have 95% confidence of estimating the population mean amount spent in this store to within plus/minus $2 if the standard deviation is assumed to be $10?
d. How many customers need to be selected to have 90% confidence of estimating the population proportion who would consider purchasing the educational DVDs to within plus/minus 0.04
In: Statistics and Probability
Groups of dolphins were observed off the coast of Iceland near Keflavik in 1998. The data in the file dolphin_dat on the course website give the time of the day and the main activity of the group, whether travelling quickly, feeding, or socializing. The dolphin groups varied in size. Usually feeding or socializing groups were larger than travelling groups. (Sec. 8.2)
Source of data: Marianne Rasmussen, Department of Biology, University of Southern Denmark, Odense, Denmark.
Activity Period Groups Travel Morning 6 Feed Morning 28 Social Morning 38 Travel Noon 6 Feed Noon 4 Social Noon 5 Travel Afternoon 14 Feed Afternoon 0 Social Afternoon 9 Travel Evening 13 Feed Evening 56 Social Evening 10
Refer to Exercise 1 above.
In: Statistics and Probability
9. A flowering plant species grows on the mainland near the
coast. One summer, a tropical storm
blows seeds from this population several hundred miles out to sea.
Some of the seeds land on an
island, where they form a new population. Describe two ways that
speciation could occur in this
situation. Include the concepts of genetic drift, gene pool,
reproductive isolation, and selection in your
description.
In: Biology
A basketball player, standing near the basket to
grab a rebound, jumps 67.1 cm vertically.
How much time does the player spend in the top 14.4 cm of
his jump?
How much time does the player spend in the bottom 14.4 cmof the jump?
Does this help explain why such players seem to hang in the air at
the top of their jumps?
In: Physics
Ms. Smith, the owner and manager of the Clear Duplicating Service located near a major university, is contemplating keeping her shop open after 4PM and until midnight. In order to do so, she would have to hire additional workers. She estimates that the additional workers would generate the following total output (where each unit of output refers to 100 pages duplicated). If the price of each unnit of output is $10 and each worker hired must be paid $40 per day, how many workers should Ms. Smith hire?
Wokers hired 0 1 2 3 4 5 6
Total Product 0 12 22 30 36 40 42
Find the marginal revenue product of labor for the data in the problem above from the change in total revenue resulting from the employment of each additional unit of labor, and show that the number of workers that Ms. Smith should hire is the same as that obtained in the problem above.
In: Economics
You live near a Mac Donnel’s and want to estimate the proportion, p, of your neighbors who go there on a typical day.
a. How many people in your neighborhood should you include in your random sampling to be 94% sure that you are within 1% of the population proportion? ___________.
b. If 23 out of 45 of Crista’s neighbors visit Mac Donnel’s every day, how many people should be included in your random sampling to be 86% sure that you are within 2% of the population proportion? _________
In: Statistics and Probability