Suppose that you are a dealer in sugar. On 26^th March 2020 you hold 200,000 pounds of sugar in inventory that is worth $0.0379 per pound. The current price of a futures contract expiring 3 months later in June is $0.0450 per pound. Each futures contract is written on 100,000 pounds of sugar. You have decided to sell two June 2020 futures contract to hedge your planned sale of sugar later. Assume a zero interest rate so that you can ignore the cost of any initial margin or variation margins. The futures contract is cash settled.

Required:

1. Calculate the original basis. Also calculate your net proceeds (from both the sale of sugar and the cash settlement of the futures contract if settlement of the futures contract takes place on the mandatory close out date). Assume the “type” of sugar and the sugar quality that underlies the futures contract exactly matches the physical sugar you hold as part of your inventory. Original Basis is: ? Net proceeds from sugar sale and settlement of any gain or loss on the two futures contract at maturity date or the mandatory close out date of the futures contract is: ?
2. Now assume that the sugar is sold and the hedge is closed on 10^th April 2020, when the spot price is $0.0474 and the June 2020 futures price is $0.0490. Calculate the net proceeds from both the sale of sugar and the cash settlement of the two futures contracts on 10^th April 2020.

Illustration Capsule 5.1 discusses Amazon’s low-cost position in the electronic commerce industry. Based on information provided in the capsule, explain how Amazon has built its low-cost advantage in the industry and why a low-cost provider strategy is well suited to the industry.

MBA class. Business Strategy and policy class MB 695.

Book: Crafting and Executive Strategy: The Quest for Competitive advantage: conept and cases, 21st edition by Arthur Thompson

Celestila Moonn, an UMB MBA student selected Google stock for Capital Market/Portfolio construction project. Last week, Moonn realized that the stock lost 10% of its value since the stock was purchased. Moonn also noticed that Google pays no dividends yet investors are willing to buy shares in this firm.

In your initial post, briefly justify: How is this possible? Does this violate the basic principle of stock valuation? Do you support Moonn’s concerns?

Look at the following research questions. What would be an appropriate audience for each one? Why did you come to that answer?

1. How does the use of texting affect high school English grades?
2. What effect do medical budget cuts have on small town hospitals?
3. Does earning an MBA make you a better job candidate?
4. Why does the American government lend money to foreign countries?

1)  Explain the primary benefits of a business education?

2) Why is pursuing an MBA immediately after finishing an undergraduate degree generally a bad idea?

3) briefly describe the various alternatives to a formal business education.?

4) Explain the difference between “training” and “education”. Then explain the role of each in higher education (and specifically in business school)?

5)  What does a business degree signal to an employer?

6) Briefly describe the various formats for a business degree?

Exercise 194

The financial statements of Lowz Company appear below:

Prepare a statement of cash flows for Lowz Company using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The financial statements of Lowz Company appear below:

Prepare a statement of cash flows for Lowz Company using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

App Problem 2-81 Preparing Reversing Entries Log b. Prepare an accruauustu ... Rona Company is a calendar-year manufacturer. Rona is reviewing the following transactions for possibles ing entries at December 31, 2020. 1. One of Rona Company's liabilities is a 12%, 540,000 long-term note payable, which requires interes paid each March 1 and September 1. 2. Rona Company owns a $20,000, 10% bond, which it purchased at face value and which pays interest August 1 and February 1. 3. Rona Company performed and completed services for a customer in December for a $12,000 total fe: 1 customer was not billed and did not remit payment in the current year. The customer has a strong as rating. 4. Depreciation of $30,000 is to be recorded. 5. Salaries totaling $15,000 were earned but not paid or recorded at year-end. The first payroll in 200164 pected to total $45,000 6. Rona paid $4,800 cash for a one-year insurance policy on September 1, 2020. Rona records the full an! on September 1 as insurance expense. Required For each of the 6 items described above, provide the following: a. December 31, 2020, adjusting entry. b. January 1, 2021, reversing entry (if a reversing entry is not appropriate, explain why). c. Entry for the associated transaction to occur in 2021 if one is expected.
USCU Statement of income. 1. App-Problem 2-81 Preparing Reversing Rona Company is a calendar-year manufacturer. Rona is reviewing the following transactions for possible adjust- Entries Log ing entries at December 31, 2020. One of Rona Company's liabilities is a 12%, $40,000 long-term note payable, which requires interest to be paid each March 1 and September 1. 2. Rona Company owns a $20,000, 10% bond, which it purchased at face value and which pays interest each August 1 and February 1. 3. Rona Company performed and completed services for a customer in December for a $12,000 total fee. The customer was not billed and did not remit payment in the current year. The customer has a strong credit rating. 4. Depreciation of $30,000 is to be recorded. 5. Salaries totaling $15,000 were earned but not paid or recorded at year-end. The first payroll in 2021 is ex- pected to total $45,000. 6. Rona paid $4,800 cash for a one-year insurance policy on September 1, 2020. Rona records the full amount on September 1 as insurance expense. Required For each of the 6 items described above, provide the following: a. December 31, 2020, adjusting entry. b. January 1, 2021, reversing entry (if a reversing entry is not appropriate, explain why). c. Entry for the associated transaction to occur in 2021 if one is expected.

Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:

1. If Wiper's stock had a price/earnings ratio of 12 at the end of 2020, what was the market price of the stock?
2. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e.
3. Calculate the dividend payout ratio for 2020.
4. Assume that accounts receivable at December 31, 2020, totaled $325 million. Calculate the number of days' sales in receivables at that date.
5. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
6. Calculate the times interest earned ratio for 2020 and 2019.

Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:

1. If Wiper's stock had a price/earnings ratio of 12 at the end of 2020, what was the market price of the stock?
2. Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part 1
3. Calculate the dividend payout ratio for 2020.
4. Assume that accounts receivable at December 31, 2020, totaled $316 million. Calculate the number of days' sales in receivables at that date.
5. Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.
6. Calculate the times interest earned ratio for 2020 and 2019.