1. Thyme to Eat Restaurant has the following information:

Total Sales: $77,500

Food Sales: $62,000

Beverage Sales: $12,000

Other Sales: $3,500

Food Purchases: $19,500

Beverage Purchases: $3,250

Beginning Food Inventory: $14,000

Beginning Beverage Inventory: $2,700

Ending Food Inventory: $17,900

Ending Beverage Inventory: $3410

Labor Dollars Spent: $26,450

1. What is the Prime Cost in Percentage form?
2. What is the Food Cost percentage for this restaurant?
3. What is the Beverage cost percentage for this restaurant?
4. What is the labor cost percentage for this restaurant?
5. If the plate cost is $3.45 and you wanted a 32% Food Cost, what do you need to charge for this dish and what is the contribution margin for this dish?

Sunk or Opportunity costs.

Explain the difference between a sunk cost and an opportunity cost and give an example of each. please explain in depth.

There are 3 components of capital which includes cost of debt, cost of preferred stock and cost of equity After Tax cost of debt = I(1-t) I = Interest rate of debt t = tax rate Cost of preference capital = Dp/Np Dp = dividend of preference share Np = proceeds of preference share Cost of equity(CAPM method) Ke = Rf +Ba(Rm-Rf) Ke= cost of equity Rf= Risk free rate of return Ba = Beta of the security Rm= expected market return CALCULATE THESE FORMULAS WITH THE PROVIDED INFORMATION. Income Statement 2017 2016 2015 Revenues before provision for doubtful $47,653 $44,747 $43,591 accounts Provision for doubtful accounts 4,039 3,257 3,913 Revenues 43,614 41,490 39,678 Salaries and benefits 20,059 18,897 18,115 Supplies 7,316 6,933 6,638 Other operating expenses 8,051 7,496 7,056 Equity in earnings of affiliates (45) (54) (46) Depreciation and amortization 2,131 1,966 1,904 Interest expense 1,690 1,707 1,665 Losses (gains) on sales of facilities (8) (23) 5 Losses on retirement of debt 39 4 135 Legal claim costs (benefits) ? (246) 249 Total Expenses 39,233 36,680 35,721 Income before income taxes 4,381 4,810 3,957 Provision for income taxes 1,638 1,378 1,261 Net income 2,743 3,432 2,696 Net income attributable to noncontrolling 527 542 567 interests Net income attributable to HCA Healthcare, $2,216 $2,890 $2,129 Inc. Per share data: Basic earnings per share $6.12 $7.53 $5.14 Diluted earnings per share $5.95 $7.30 $4.99 Shares used in earnings per share calculations (in millions): Basic 362.31 383.59 414.19 Diluted 372.22 395.85 426.72 EBIT 6,071 6,517 5,622 EBITDA 3,940 4,551 3,718 Share Price on Last Day of Year 87.84 74.02 67.63 Balance Sheet 2017 2016 2015 ASSETS Current assets: Cash and cash equivalents $732 $646 $741 Accounts receivable, less allowance for 6,501 5,826 5,889 doubtful accounts of $5,488 and $4,988 Inventories 1,573 1,503 1,439 Other 1,171 1,111 1,163 Current Assets 9,977 9,086 9,232 Property and equipment, at cost: Land 1,746 1,611 1,524 Buildings 14,249 13,546 12,533 Equipment 22,168 20,580 19,335 Construction in progress 1,921 1,318 1,222 40,084 37,055 34,614 Accumulated depreciation (22,189) (20,703) -19,600 17,895 16,352 15,014 Investments of insurance subsidiaries 418 336 432 Investments in and advances to affiliates 199 206 178 Goodwill and other intangible assets 7,394 6,704 6,731 Other 710 1,074 1,157 Total assets $36,593 $33,758 $32,744 LIABILITIES AND STOCKHOLDERS? DEFICIT Current liabilities: Accounts payable $2,606 $2,318 $2,170 Accrued salaries 1,369 1,265 1,233 Other accrued expenses 1,983 2,035 1,880 Long-term debt due within one year 200 216 233 Current Liabilities 6158 6,158 5,834 5516 5,516 Long-term debt, less net debt issuance 32,858 31,160 30,255 costs of $164 and $170 Professional liability risks 1,198 1,148 1,115 Income taxes and other liabilities 1,374 1,249 1,904 Stockholders? deficit: Common stock $0.01 par; authorized 1,800,000,000 4 4 4 shares; outstanding 350,091,600 shares?2017 and 370,535,900 shares?2016 Accumulated other comprehensive loss (278) (338) -265 Retained deficit (6,532) (6,968) 25,675 -7,338 Stockholders? deficit attributable to (6,806) (7,302) -7,599 HCA Healthcare, Inc. Noncontrolling interests 1,811 1,669 1553 1,553 -4995 (4,995) (5,633) -6,046 Total Liabilities $36,593 $36,593 $33,758 $32,744 Total Liabilities 39,016 36,994 35,771 Total Common Equity 7600 7300 6810 Shares Outstanding (using Morningstart data) 427 396 372 Book Value Per Share 17.79859485 18.43434343 18.3064516

1. a. Explain why the cost of debt is lower than the cost of capital?

1. b. Explain what is meant by the statement- depreciation is a non-cash expense and how do companies use it.

1. c. How long does it take money earning 12% to double? Use both the rule of 72 and your financial calculator.

1. d. Explain the three ways a company can raise capital.

1. e. If an investor has a short term view on her investments and in a time of high interest rates - which is better stocks or bonds? Why?

1. f. Explain the difference between common and preferred stock.

1. g. If you own 3 stocks A, B, and C. What is your total return of your portfolio? Stock $ invested Return A $ 6,000 6 % B 9,000 9 % C 15,000 11 %

1. h. Explain the RISK/ REWARD theory?

1. i. GM issued a $ 1,000, 30-year bond 5 years ago at 9 % interest. Comparable bonds yield 6 % today. What should GM’ bond sell for now?

1. j Define each variable in the equation P = (D1 + P1) / (1 + R)

1.k Solve the NPV and solve for the Payback

YR Cash Flow

0 -$26,000

1 11,000

2 14,000

3 11,000

with the required rate equal to 6%

A proposed cost-saving project requires a device with an installed cost of $540,000. The project will last for five years. The device has a CCA rate of 20%. The required initial net working capital investment is $20,000, the marginal tax rate is 37%, and the required return on the project is 11%. The device has an estimated salvage value of $95,000 at the end of Year 5, and the net working capital investment will also be recovered at the end of Year 5. What level of pre-tax cost savings do we require for this project to be profitable?

An injection molding system has a first cost of $190,000 and an annual operating cost of $71,000 in years 1 and 2, increasing by $6,000 per year thereafter. The salvage value of the system is 25% of the first cost regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 10% per year, determine the ESL and the respective AW value of the system.

The ESL is 5 year(s) and AW value of the system is $  .

1.

a. Draw a horizontal average cost curve for the monopolist. Where is the marginal cost curve and how do you know?

b. Is the equilibrium in which there is one competitive industry and one monopolistic industry efficient? Explain.

c. Now suppose the monopolist above can perfectly price-discriminate. What is his marginal revenue curve? Explain.

The answer is correctly solved but how is it set up and done in EXCEL?

Cost of Rehabilitation The Medical Rehabilitation Education Foundation reports that the average cost of rehabilitation for stroke victims is $24,672. To see if the average cost of rehabilitation is lower at a particular hospital, a researcher selects a random sample of 49 stroke victims at one particular hospital and finds that the average cost of their rehabilitation is $23,800. The standard deviation of the population is $3251. At α = 0.004, can it be concluded that the average cost of stroke rehabilitation at the hospital is below $24,672? Source: Snapshot, USA TODAY. Do not use the P-value method. Get 0 point if use the P-value method.

A piece of onboard equipment has a first cost of $600,000, an annual cost of $92,000, and a salvage value that decreases to zero by $150,000 each year of the equipment’s maximum useful life of 5 years. Assume the company’s MARR is 10% per year.

(a) Determine the ESL by hand.

(b) Use a spreadsheet with a graph indicating the capital recovery, AOC, and total AW per year to determine the ESL.