BBT Production is promoting a concert in Kuala Lumpur. The bands will receive a flat fee of RM7 million in cash. The concert will be shown worldwide on closed-circuit television. BBT will collect 100% of the receipts and will return 30% to the individual local closed-circuit theater managers. BBT expects to sell 1.1 million seats at a net average price of RM13 each.

Required:

Club Fitness is open from 5 A.M. until 9 P.M. Monday through Saturday. The gym is closed on Sundays and holidays. Hank Hunkley, the owner, is considering offering 24-hour, 7-day-a-week, 365-days-a year access for an additional $59 a year per member. In exchange for the extra fee, the member would receive a magnetic fob that will unlock the door when the facility is closed. Each fob would cost Hank $5. Based on a survey taken of his 951 current members, Hank estimates that 36% of them will buy the fob to allow extended hours access. What is the total CLV associated with the 24/7/365 access plan for the current membership if the costs for personnel and equipment for the program are $9,548 annually?

Please post the Excel formula

6. The income-expenditure model Consider a small economy that is closed to trade, so its net exports are equal to zero. Suppose that the economy has the following consumption function, where C is consumption, Y is real GDP, I is investment, G is government purchases, and T stands for net taxes: C = 45+0.75×(Y – T) Suppose G = $60 billion, I = $60 billion, and T = $20 billion. Given the consumption function and the fact that for a closed economy total expenditure can be calculated as Y=C+I+G , the equilibrium output level is equal to $ billion. Suppose the government purchases are reduced by $50 billion. The new equilibrium level of output will be equal to . Based on the effect of the change in government purchases on equilibrium output, you can tell that this economy's spending multiplier is equal to .

The multi-merge sort algorithm (M&M sort) works like merge sort, except that instead of dividing the array into 2 partitions, it divides the array into p partitions. It recursively sorts each of the p partitions and then merges the results doing a p-way merge (except, of course, for the base case of a singleton or empty array). (a) Write the recurrence for T(n) for M&M sort for the case where p is a constant. Then, give a closed-form solution to the recurrence using the Master Theorem, and note which case applied. (b) Now assume that p is not a constant, but rather p(n) = n/10. Rewrite T(n) for this case. Then, give a closed form solution. Use the Master Theorem if it applies, or any other means of arriving at the result.

Find the fundamental frequency and the frequency of the first three overtones of a pipe 55.0 cm long, if the pipe is open at both ends.

Please enter your answer as four numbers, separated with commas.

Find the fundamental frequency and the frequency of the first three overtones of a pipe 55.0 cm long, if the pipe is closed at one end.

Please enter your answer as four numbers, separated with commas.

If the pipe is open at both ends, what is the number of the highest harmonic that may be heard by a person who can hear frequencies from 20.0 Hz to 2.00×10⁴ Hz?

If the pipe is closed at one end, what is the number of the highest harmonic that may be heard by a person who can hear frequencies from 20.0 Hz to 2.00×10⁴ Hz

On 1 July, 2020 Bushman Ltd entered into a four-year lease of a building from Lessor Ltd. The terms of the lease agreement are as follows.

• Four payments of $200,000 are due starting on 30 June 2021 (after interest has accrued).

• Bushman can elect to terminate the lease at any time, but they need to pay 20% of an annual lease payment for administrative purposes upon termination

• The economic life of the building is estimated to be ten years.

• The fair value of the building at the commencement of the lease is $1,000,000.

• At the end of the lease term, Bushman has the option to purchase the building from

  Lessor Ltd at a price that is 10% lower than the predicted market value of the building

  at that time.

• The interest rate implicit in the lease is 5 per cent.

  Assume that the contract is a lease for the purposes of AASB 16 ‘Leases’.

  REQUIRED:

  Explain how Lessor Ltd would classify the lease in accordance with the requirements of AASB 116 ‘Leases’. Show all necessary working, explanations and assumptions to support your answer. Also prepare the necessary journal entries for the first year in the books of Lessor Ltd (i.e. 1 July 2020 to 30 June 2021).

On November 1, 2017, Whispering Company adopted a stock-option plan that granted options to key executives to purchase 27,300 shares of the company’s $10 par value common stock. The options were granted on January 2, 2018, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $30, and the fair value option-pricing model determines the total compensation expense to be $409,500.

All of the options were exercised during the year 2020: 18,200 on January 3 when the market price was $68, and 9,100 on May 1 when the market price was $78 a share.

Prepare journal entries relating to the stock option plan for the years 2018, 2019, and 2020. Assume that the employee performs services equally in 2018 and 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.)

Question 4

K Manufacturers has the following marginal income statement for 2019:

Marginal income statement for the year ended December 31, 2019

Sales (300,000 units @ GH¢40)                                                                     GH¢12,000,000

Variable costs of goods sold (300,000 units @ GH¢24)                                       (7,200,000)

Manufacturing profit                                                                                              4,800,000

Variable selling and distribution cost (300,000 units @ GH¢2.4)                            720,000

Contribution                                                                                                            4,080,000

Fixed Cost                                                                                                              3,536,000

            Manufacturing cost                                                     GH¢2,160,000

            Selling and distribution cost                                                 500,000

            Administration costs                                                           876,000

Net profit                                                                                                                   544,000

Required

i. Calculate the company’s break-even quantity and the sales value for 2019.

ii. Calculate the number of units that have to be sold in 2019 if the company wishes to earn a net profit (after tax) of GH¢1,088,000 in 2020. Assume that the selling price, variable cost and total fixed costs are the same as those in 2019. Assume a tax rate of 25%.                                                                                                       

iii. Calculate the break-even quantity for 2020 if the fixed costs of the company increase by GH¢384,000 in order that the variable costs decrease by 40 pesewas per unit and a selling price increased to GH¢43.                                                             

Hot Pockets Corporation is considering going public. Managers want to estimate common stock value. The standard deviation of returns for this firm is 20%. The firm’s beta is 0.8. 3-month T-Bills currently trade at a discount to par of 1% on an annualized basis. The expected return on the stock market is 10%. There are 10,000 shares of common stock outstanding. Assume the firm’s capital structure is 50% debt, 50% common equity, the cost of debt is 6%, and the marginal tax rate for the firm is 21%. a) What is the total risk of this firm, and what is its systematic risk? b) What is the expected return of this stock? What is the name of the model you use to estimate it? c) What is the Weighted Average Cost of Capital for the firm? d) If the firm’s estimated free cash flows over the next 3 years are: Year Estimated Free Cash Flow 2018 $100,000 2019 $200,000 2020 $300,000 and after 2020 to infinity, expected free cash flows will grow at a rate of 4% per year: (i) what is the value of its equity outstanding; and (ii) what would be the price per share?

On December 31, 2020, Tamarisk Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,200,000 note receivable by the following modifications:

Barkley pays interest at the end of each year. On January 1, 2024, Barkley Company pays $1,440,000 in cash to Tamarisk Bank.

Answer the following questions related to Tamarisk Bank (creditor).

1. Compute the loss Tamarisk Bank will suffer under this new term modification (Loss on restructuring of debt)

2. Prepare the journal entry to record the loss on Tamarisk’s books

3. Prepare the interest receipt schedule for Tamarisk Bank after the debt restructuring.

4. Prepare the interest receipt entry for Tamarisk Bank on December 31, 2021, 2022, and 2023.

5. What entry should Tamarisk Bank make on January 1, 2024?