Wildhorse Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,944,000 on March 1, $1,224,000 on June 1, and $3,032,200 on December 31. Wildhorse Company borrowed $1,016,400 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,206,100 note payable and an 10%, 4-year, $3,702,000 note payable. Compute avoidable interest for Wildhorse Company. Use the weighted-average interest rate for interest capitalization purposes. (Round percentages to 2 decimal places, e.g. 2.51% and final answer to 0 decimal places, e.g. 5,275.)

Coronado Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,872,000 on March 1, $1,272,000 on June 1, and $3,046,500 on December 31.

Coronado Company borrowed $1,007,900 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,397,800 note payable and an 10%, 4-year, $3,714,900 note payable. Compute avoidable interest for Coronado Company. Use the weighted-average interest rate for interest capitalization purposes. (Round percentages to 2 decimal places, e.g. 2.51% and final answer to 0 decimal places, e.g. 5,275.)

Cost-Volume Profit Analysis

Guiseppe is operating a restaurant. Fixed costs are 45,000 $. Average cost of food and other variable costs are 3.20 $. The average bill is 8$. The income tax rate is 30 %, the net target profit is 105,000 $ (i.e. after income tax).

a) How many customers are needed to earn a net target profit of 105,000 $ and to break even? (6 points)

b) Calculate the net target profit if you have 15,000 customers! (3 points) c) What is the normal-markup percentage for an average bill given 15,000

customers?
d) Calculate the operating leverage for 15,000 customers.

Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 600,000 units:

       Per Unit                                                                           Total

       Direct materials                                                                  $37

       Direct labour                                                                        43

       Variable manufacturing overhead                                        65

       Fixed manufacturing overhead                            $15,000,000

       Variable selling and administrative expenses                      73

       Fixed selling and administrative expenses             11,400,000

The company has a desired ROI of 20%. It has invested assets of $325,000,000.

Required:

Calculate each of the following:

1. Total cost per unit.

2. Desired ROI per unit.

3. Mark-up percentage using total cost per unit.

4. Target selling price.

Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah’s Cycles on February 1 for $950 (cost of goods sold of $575). On February 9, Sarah’s Cycles returned to Cycle Wholesaling one-quarter of the merchandise from February 1 (cost of goods returned was $150). Cycle Wholesaling uses a perpetual inventory system, and it allows returns only within 15 days of initial sale.

Required:

1. 1. to 3. Prepare the journal entry to record the sales, Goods returned on February 9 and Cash collected on March 2.

2. 4. Calculate the gross profit percentage for the sale to Sarah’s Cycles.

1. The percentage of automobile consumers who are under 50 years of age decreased approximately linearly from 56.1% in 1990 to 51.3​% in 2005.

a. Predict when the percentage will be 42​%.

b. Predict the percentage in 2014.

Q)In analyzing a DNA sample the molar amount of adenosine is 30 %. Given this information and applying Chargaff's rules, determine the following:
a. Percentage of thymidine /T?
b. percentage due to cytidine /C?
c. percentage due to Guanosine /G ?
d. Percentage due to uridine /U?
5. What is the resulting product when you replicate this sequence : 5- ATCCG -3

Problem 13-59 (Static) Prepare Budgeted Financial Statements (LO 13-6, 7)

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 15 properties with an average of 200 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 70 percent, based on a 365-day year. The average room rate was $180 for a night. The basic unit of operation is the “night,” which is one room occupied for one night.

The operating income for year 1 is as follows.

In year 1, the average fixed labor cost was $400,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open three new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 70 percent. Management has made the following additional assumptions for year 2.

• The average room rate will increase by 5 percent.
• Food and beverage revenues per night are expected to decline by 20 percent with no change in the cost.
• The labor cost (both the fixed per property and variable portion) is not expected to change.
• The miscellaneous cost for the room is expected to increase by 25 percent, with no change in the miscellaneous revenues per room.
• Utilities and depreciation costs (per property) are forecast to remain unchanged.
• Management costs will increase by 8 percent, and marketing costs will increase by 10 percent.
• Other costs are not expected to change.

Required:

Prepare a budgeted income statement for year 2.

First, BICA is considering the purchase of the Empty Arms hotel. Next year's NOI and cash flow is expected to be $2,000,000 and BIC's economic forecast of market supply and demand and vacancy levels indicated they will continue to be in balance. As a result NOI should increase by 1.5 percent each year based upon expected capital improvements, and BIC believes they should earn 9% total return on the investment.

What is the estimated value of the property?

What cap rate should be found from recently sold properties that are comparable to Empty Arms? NOTE how the cap rate reflects the growth in NOI.

Should they purchase this investment if the negotiated asking price is $27M?