| Historical Ratios | Projected Ratios | |||||||||
| 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | 4/1/2018 | ||||||
| Current Ratio | 1.161 | 0.833 | Current Ratio | 0.951 | 0.964 | 0.613 | ||||
| Quick Ratio | 0.522 | 0.426 | Quick Ratio | 0.46 | 0.466 | 0.294 | ||||
| Total Debt-to-Total-Assets Ratio | 0.73 | 0.804 | Debt-to-Total-Assets Ratio | 0.85 | 0.832 | 0.865 | ||||
| Total Debt-to-Equity Ratio | 2.82 | 4.306 | Debt-to-Equity Ratio | 5.976 | 4.962 | 6.525 | ||||
| Times-Interest-Earned Ratio | 16.618 | 13.359 | Times-Interest-Earned Ratio | 14.376 | 15.802 |
16.776 |
||||
Question: What do the ratios calculated communicate about the financial strengths and weaknesses of Hershey?
Question: Based on your calculations, would you invest in Hershey Company, why or why not?
In: Accounting
I need assistance with creating a summary of the Board of Advisors, for The Sweet Password. The Sweet Password (is an imaginary confectionery company that has decided to use characters from Willy Wonka and The Chocolate Factory).
Advisors - Names, Roles, and Qualifications
Violet Beauregarde
Veruka Salt
Mike Teavee
An Advisory Board is a panel of experts who are asked by a firm’s managers to provide counsel and advice on an ongoing basis. These are usually uncompensated positions, that are an opportunity for highly skilled and experienced managers to "pay it forward" by providing guidance for a new company. These individuals don't have actual job responsibilities in the company. They simply meet with the company management to provide suggestions and provide diversity to the decisions the management makes.
In: Accounting
101)
Suppose that you are valuing a South African diamond producer that sells most of its products in China, records its sales in Chinese RMB, and has most of its employees in China. The company is publicly traded on the South African stock market. Which of the following should be components of your Cost of Equity calculation for this company?
a) Use Chinese government bond yields for the Risk-Free Rate.
b) Use South African government bond yields for the Risk-Free Rate.
c) The Equity Risk Premium should be based on US stock market historical returns, plus a spread to account for the additional risk and potential returns in South Africa (as the company is listed on the South African stock market).
d) The Equity Risk Premium should be based on US stock market historical returns, plus a spread to account for the additional risk and potential returns in China (as the company operates largely in China).
e) Ideally, Levered Beta should be based on comparable diamond producers that operate in China.
f) Ideally, Levered Beta should be based on comparable diamond producers that are headquartered in South Africa but operate largely in China.
102)
Which of the following represent DIFFERENCES in a Levered DCF analysis compared to an Unlevered DCF analysis?
a) You will calculate Terminal Value using an Equity Value-based multiple rather than an Enterprise Value-based one.
b) You will use Levered Beta rather than Unlevered Beta in the Cost of Equity calculations.
c) You will use Cost of Equity instead of WACC for the discount rate.
d) You don’t have to add back non-cash charges in the same way because Levered Free Cash Flow starts with Net Income rather than NOPAT.
e) You will calculate the company’s Implied Equity Value directly from the analysis, rather than calculating the implied Enterprise Value and then backing into the implied Equity Value.
f) When calculating Free Cash Flow, you have to subtract the net interest expense and mandatory debt repayments.
106)
Which of the following events might serve as catalysts if you are drafting a stock pitch for a healthcare company?
a) The launch of new products in any year of the projection period shown in your DCF analysis.
b) The launch of new pipeline drugs in the next 6-12 months.
c) A debt, equity, or convertible issuance within the next year.
d) A key patent expiration in 2-3 years.
e) An annual price increase that the company announces in January each year.
f) US or EU regulators approving a key drug for sale within the next year.
g) An acquisition that is set to close in 18 months.
In: Accounting
Task 2 requires you to accurately complete the activities described in each question. Complete the answers in your own Excel document, putting your name at the top along with the Task and Task letter appropriate to each answer and submit below for your Assessor.
a) Make the Journal entry to record the sale of merchandise that cost $6,000, for $10,000 cash.
b) Record journal entries for the following transactions.
c) Record journal entries for the following transactions. After recording the transactions, prepare a ‘T-account’ and balance the accounts payable account.
d) A company had the following transactions during the first month of operations. Record journal entries for these transactions. Determine the balance in the cash account at the end of the first month.
e) A company had the following transactions during the first month of operations. Record journal entries for each transaction. Determine the balance in the cash account at the end of the first month.
In: Accounting
1.Using the following information, what is the amount of gross profit?
| Purchases |
$32,000 |
Purchases discounts |
$960 |
|
| Merchandise inventory September 1 |
5,700 |
Merchandise inventory September 30 |
6,370 |
|
| Sales returns and allowances |
910 |
Sales |
63,000 |
|
| Purchases returns and allowances |
1,200 |
Freight In |
1,040 |
|
|
$34,870 |
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$31,880 |
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$27,460 |
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$62,090 2. Use the following worksheet to answer the following questions.
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In: Accounting
Manufacturing Inc. (MI) is a public company that sells construction equipment to builders of primarily homes, office buildings, and highways. MI has been in operation for over 30 years. Up until this year the company has had profits with the real estate boom and large amounts of government funding for highway construction. With the recent economic downturn MI has had to go to its bank for increased financing. The bank has imposed a minimum current ratio as well as a minimum balance that must be maintained in one of its accounts. You have been recently hired as an accounting policy analyst to assist MI with its accounting policies. You have just finished meeting with Nancy who is the majority shareholder as well as CEO. Nancy had a lot of questions for you! You are trying to get a handle on what Nancy wants you to do and feeling a little overwhelmed at the moment. The following are comments made by Nancy at that meeting.
“This economic downturn has hit us really hard. We have had profits for a number of years and never worried about having enough cash on hand. Cash is critical in our business where the manufacturing of this specialized equipment can take a long period of time. In addition, our customers are really struggling to be able to invest in new machinery and pay their bills.
“I am very excited that you are able to join us and help out with a number of new situations that have arisen due to the economic downturn and possible solutions I have to solve our current cash crisis. Our bank has been very supportive but they are a little nervous about the economic downturn. I am not sure what, if anything, I need to do in the financial statements and notes about their recent covenant and restrictions. In addition, we have a number of bank accounts with our bank. Our line of credit has been in an overdraft position for over a year now. But we also have positive balances in our other accounts. All of these accounts are currently in cash and cash equivalents on our balance sheet. Is that okay?
“Some of our purchases for our manufacturing purchases are from the U.S. and we are required to pay in U.S. dollars. This has never been an issue for us before since the Canadian and U.S. dollar have been at par. As you know, with the recent economic downturn the Canadian dollar has been dropping in value and is currently at an all time low and may continue to drop. What is the appropriate accounting for this drop in value and what impact will this have on our financial statements?
“Some customers who have been buying from us are having difficulty paying and are currently overdue. I know they will pay eventually and I want to help them out. What I have done is make their life a little easier by changing their accounts receivable to a note. This note allows them a two year period to pay with an interest rate of 4% even though the current market rate is 8%. I have just taken the $500,000 of accounts receivable and reclassified them as a note receivable since I am sure they will pay. Is this okay?
“To get some extra cash I was considering selling some of my high quality receivables to a financial institution. I have $5,000,000 in these receivables. The financial institution will provide me with $4,800,000 in cash if I agree to make any payments that default. What would be the impact of this on my financial statements?
“One last thing: our head office was purchased a long time ago when real estate values were low. Currently, the carrying amount of that building is $520,000 but recent appraisals say it is worth $2 million. So I was thinking I could sell the building then immediately lease it back for its remaining useful life. What do you think of this idea? This could give me some much needed cash and an immediate gain of $1.48 million on my financial statements. “Sorry; I have to run to another meeting. Can you draft up a report on your preliminary ideas to all of my concerns? Thanks, and again we are so glad that you have become part of our team.”
Required:
Prepare the requested report for Nancy.
In: Accounting
Identify a product that is monopolisticly competitive.
Specifically, define what products it could be substituted for and
also what characteristics make is differentiated from those
products. Discuss what the seller of the product could do to
increase the differentiation of that product, and
Discuss what impact increasing the differentiation of that product
would likely have on the products price and the seller's profits
earned from the product.
In: Economics
A graduate student surveyed 220 undergraduate students in a university last week, and found 165 of them prefer F2F classes to online classes. Test the claim that more than 70% of the students at this university prefer F2F classes at the 5% significance level. Include all 5 steps.
Need by 3pm pacific! please help me out !
In: Statistics and Probability
Sunrise Manufacturing, Inc. Sunrise Manufacturing, Inc., a U.S. multinational company, has the following debt components in its consolidated capital section, Sunrise's shareholders' equity is $50,000,000 and its finance staff estimates their cost of equity to be 17.5%.
Current exchange rates are also listed in the table. Income taxes are 39% around the world after allowing for credits. Calculate Sunrise's weighted average cost of capital. Are any assumptions implicit in your calculation?
What is Sunrise's weighted average cost of capital?
Data Table:
|
Assumption |
Value |
|
|
Tax rate |
39% |
|
|
25-year US$ bonds |
$20 comma 000 comma 00020,000,000 |
|
|
5-year US$ bonds |
$8,000,000 |
|
|
10-year eurobonds (euros) |
euro€8,000,000 |
|
|
20-year yen bonds (yen) |
¥750,000,000 |
|
|
Before-tax cost of 25-year US$ bonds |
8.0% |
|
|
Before-tax cost of 5-year US$ bonds |
5.0% |
|
|
Before-tax cost of 10-year eurobonds |
6.0% |
|
|
Before-tax cost of 20-year yen bonds |
4.0% |
|
| Spot rate
($/euro€) |
1.2200 |
|
| Spot rate
($/pound£) |
1.9400 |
|
| Spot rate
(yen¥/$) |
105.00 |
In: Finance
Marketing
Huawei Technologies Brief History Huawei Technologies Co., Ltd. is a Chinese multinational technology company that provides telecommunications equipment and sells consumer electronics, including smartphones and is headquartered in Shenzhen, Guangdong province. The company was founded in 1987 You have been appointed as a Marketing Specialist to assist Mancosa to develop a Marketing Plan for year 2020. Please note: Your Marketing Plan must be based on market research, situation analysis and must clearly present marketing mix strategies and tactics that are likely to achieve Huawei Technologies business goals. It is important that you explain the rationale for your recommendations - why you are recommending these strategies and tactics - and why the 'client' should believe your recommended marketing strategies and implementation will be successful. Project Requirements: Develop a Marketing Plan that will help Huawei Technologies to attain a competitive advantage in a customer driven market: Report Structure: The Marketing Plan should have the following headings Each section should start on a new page. 1. Title Page: Includes the title, submission date and your name/student number. 2. Table of Contents: Page with major section names and their associated page numbers. 3. Executive Summary: (3) Summary of the highlights of the entire plan. Tip: It is easiest to write this last. 4. Situation Analysis: (10) Summary of the key market and environmental factors, Tip: PESTEL, SWOT analysis. 5. Competitive Review: (10) Including a focused marketing review of the company and their top three competitors. 6. Segmentation of customers (15) Discuss the segmentation variables and select one that should be used by Huawei Technologies. 7. Marketing Mix strategies (20) Discuss, Product, Price, Place, Promotion and the extended 3Ps. 8. Bibliography: (2) Include all of your sources including information from articles, books, websites and other sources in Harvard style.
In: Operations Management