The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

Additional information from the accounting records:

a. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.

b. Land was acquired by issuing a 13%, seven-year, $30,000 note payable to the seller.

c. Cash dividends of $13,000 were paid to shareholders.

Required:
Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)

The Westview Mall rents space to clothing stores and charges shoppers an entry fee to get into the mall. All clothing stores are identical and all shoppers are identical. Answer the following questions, using a graph that shows the supply and demand for clothing:

1. If the mall rents space to several competitive clothing stores, how much can it collect in rent? How much can it collect in entry fees? How much can it collect altogether?

2. If the mall rents space to a single monopoly clothing store, how much can it collect in rent? How much can it collect in entry fees? How much can it collect altogether?

3. Would you advise the Mall owner to rent to several competitive stores or to one monopoly? Why?

4. Copy centers usually give substantial discounts to customers with large orders. Do you think they are price discriminating? Why or why not?

5. True or False: Because a monopolist is able to charge a higher price than a perfectly competitive firm, his marginal revenue is higher than what a perfectly competitive firm’s would be.

6. The RH Snippet company has one president and 1000 assembly line workers. Which of the following events would have a bigger impact on the price of Snippets and why? a) The president gets a raise of $1,000,000 a year. b) A new union contract raises each worker’s wages by $1,000 a year, but allows the firm to fire as many workers as it wants to.

*****How do you answer 1-3 using a graph, please show me the correct answer with graph*****

Profit Analysis

The same multimedia company now estimates their cost and revenue functions to be:

C(x) = 11.2x + 48,000   and   

R(x) = 18.26x.

Find the profit of manufacturing and selling 9,633 units.  (Round to two decimal places).

Suppose Company A has revenue $45 million this year and we assume that its future performance will be tracked relative to sales as follows:

Sales growth and the net profit margin are projected by year as shown in the following table:

Fixed capital investment net of depreciation is projected to be 25% of the sales increase in each year.

Working capital requirements are 8.0% of the projected dollar increase sales in each year. Debt will finance 30% of the investments in net capital and working capital.
Risk free rate is 3%, beta equity is 1.1, and market return is 7%
Calculate the value of the equity of this company.

A company bought a new machine fot $300,000. The new machine generated revenue for $90,000 per year. Operating cost of that machine is $10,000 per year. The machine is depreciated according to 7-years MACRS method. The machine is sold for $80,000 in the middle of 6^th year of service. Determine the after tax net present worth. Assume, the after-tax MARR is 10% and income tax rate is 25% (federal and state combined).

We are given the following information about a Company X -

Debt-Value Ratio - 15%

Revenue - $90,000

Cost - $50,0000

Cost of Debt - 5%

Cost of Equity - 25%

Shares Outstanding - 5,000

Corporate Tax - 30%

(a) What is the firm’s value?

(b) What is its stock price?

(c) Company Y is a leveraged buyout firm. It believes that Company X's leverage is too low. It thinks that Company X's firm value can increase with higher debt-to-value ratio and believes Company X's optimal debt-to-value ratio is 15%. Company X's cost of debt at this 15% debt-to-value ratio is 9%. Company Y is considering buying all of Company X's shares and increase Company X's leverage to the optimal 15% level. Proceeds from debt issuance will be given out to equityholderes as special dividend. What is the maximum premium Company Y is willing to pay for Company X's shares?

A company has the following results for the year ending December 31, 2020

On September 1, 2020, the company decided to eliminate a division. During 2020, losses relating to the eliminated division total $253,000. The above results in the table do not include this amount.

The company's income tax rate is 40%. All given amounts are pre-tax figures.

What is the company's net income or loss from 2020?

An electrical product manufacturing company provides the following information related to plant revenue, cost, and capacity. The purpose is to find the answers to the questions that are of primary interest to the company. The data is as follows:

Plant capacity 55,000 units

Total fixed cost $ 550,000

Unit Price $ 40

Variable cost $ 18

Tax rate 15%

Expected profit $ 85,000

Contribution margin $ 22

9. What would be the sale price of the product for which the plant would be at its break even point, if the fixed cost was $ 500,000, the variable cost was $ 50 and the maximum quantity to sell was 40,000?

10. Taking as a break even point the price of question 9, if the company wanted to obtain a profit of 30%, what would be the sale price of the product

A company reports sales revenue of $314 million, cost of goods sold of $187 million, selling and administrative expenses of $77 million, depreciation of $20 million, and interest expense of $5 million. What is the company's after-tax operating income (to one decimal place) if the corporate tax rate is 30%?

A company reports sales revenue of $313 million, cost of goods sold of $183 million, selling and administration expenses of $79 million, depreciation of $20 million and interest expense of $9 million. What is the company's after-tax operating income (to one decimal place) if the corporate tax rate is 30%?