Blossom Company has provided information on intangible assets as follows.

A patent was purchased from Ford Company for $2,300,000 on January 1, 2016. Blossom estimated the remaining useful life of the patent to be 10 years. The patent was carried in Ford’s accounting records at a net book value of $1,800,000 when Ford sold it to Blossom.

During 2017, a franchise was purchased from Polo Company for $500,000. In addition, 4% of revenue from the franchise must be paid to Polo. Revenue from the franchise for 2017 was $2,300,000. Blossom estimates the useful life of the franchise to be 10 years and takes a full year’s amortization in the year of purchase.

Blossom incurred research and development costs in 2017 as follows.

Blossom estimates that these costs will be recouped by December 31, 2020. The materials and equipment purchased have no alternative uses.

On January 1, 2017, because of recent events in the field, Blossom estimates that the remaining life of the patent purchased on January 1, 2016, is only 5 years from January 1, 2017.

1) Prepare the intangibles section of Blossom’s balance sheet at December 31, 2017.

2) Prepare the income statement effect (related to expenses) for the year ended December 31, 2017, as a result of the facts above.

5. You ask your recent MBA hire to evaluate the attractiveness of an investment in a piece of computer equipment you've been interested in. He gives you the following report. (Assume that he at least collected all the figures correctly.) The equipment cost $150,000 and will be straight-line depreciated over 5 years. It will replace an existing system -- that would otherwise be used for the five years -- which has been fully depreciated and could be sold for $3,000. It requires the use of software, which the firm has recently purchased for $20,000. The equipment will improve efficiency, which will allow you to cut costs by $60,000/year. The maintenance of the product requires the time of 1/10th of an employee with salary $30,000 and who generates $50,000 of profits to the firm. An additional $5,000 must be reserved for operations. You know that you can sell this product after 5 years for $50,000. Your firm is taxed at 30%. Last year, your firm had a price increase of 15%. You also know that firms who are only in this no-growth business are trading at a P-E multiple of 10. You receive the following analysis with a recommendation against the investment:

                        0          1          2          3          4          5

                        ---        ---        ---        ---        ---        ---

Cost Savings               60        60        60        60        60

Maintenance               -3         -3         -3         -3         -3

Buy Eqpt      -150                                                       50

Sell Old            3

OppCost of

150K at 15%               -22       -22       -22       -22       -22

Depreciation               -20       -20       -20       -20       -20

Software      -20

                        --------------------------------------------------

EBIT          -167          15        15        15        15        65

Taxes                          4.5       4.5       4.5       4.5       19.5

                        --------------------------------------------------

Net CF        -167         11        11        11        11        46  

IRR<0<Required 15% return. Is this analysis correct? If not, where did your MBA go wrong? Redo the analysis to determine whether you should invest in the new equipment.

MBA - Managerial Economics

1. Demand of a product is usually very sensitive to economic variables, such as the prices and consumer income. This responsiveness of demand is elasticity. Compute elasticity in the below scenarios:
   1. Yesterday, the price of envelopes was $3 a box, and Jacky was willing to buy 10 boxes. Today, the price has gone up to $3.75 a box, and Jacky is now willing to buy 8 boxes. Is Jacky's demand for envelopes elastic or inelastic? What is Jacky's elasticity of demand?
   2. Katy advertises to sell cookies for $4 a dozen. She sells 50 dozen, and decides that she can charge more. She raises the price to $6 a dozen and sells 40 dozen. What is the elasticity of demand? Assuming that the elasticity of demand is constant, how many would she sell if the price were $10 a box?

Thanks

Upon successful completion of the MBA program, imagine you work in the analytics department for a consulting company. Your assignment is to analyze the following databases: Hospital

Provide a detailed, four part, statistical report with the following sections:

Part 1 - Preliminary Analysis

Part 2 - Examination of Descriptive Statistics

Part 3 - Examination of Inferential Statistics

Part 4 - Conclusion/Recommendations

Part 1 - Preliminary Analysis Generally, as a statistics consultant, you will be given a problem and data. At times, you may have to gather additional data. For this assignment, assume all the data is already gathered for you.

State the objective: What are the questions you are trying to address? Describe the population in the study clearly and in sufficient detail: What is the sample? Discuss the types of data and variables: Are the data quantitative or qualitative? What are levels of measurement for the data?

Part 2 - Descriptive Statistics Examine the given data. Present the descriptive statistics (mean, median, mode, range, standard deviation, variance, CV, and five-number summary). Identify any outliers in the data. Present any graphs or charts you think are appropriate for the data. Note: Ideally, we want to assess the conditions of normality too. However, for the purpose of this exercise, assume data is drawn from normal populations.

Part 3 - Inferential Statistics Use the Part 3: Inferential Statistics document. Create (formulate) hypotheses Run formal hypothesis tests Make decisions. Your decisions should be stated in non-technical terms. Hint: A final conclusion saying "reject the null hypothesis" by itself without explanation is basically worthless to those who hired you. Similarly, stating the conclusion is false or rejected is not sufficient.

Part 4 - Conclusion and Recommendations Include the following: What are your conclusions? What do you infer from the statistical analysis? State the interpretations in non-technical terms. What information might lead to a different conclusion? Are there any variables missing? What additional information would be valuable to help draw a more certain conclusion?

You are a hotshot MBA financial analyst for the manager of the Emmons Corporation’s Machining Department. Your manager is visibly upset after being reprimanded for his department’s poor performance over the last month, as presented in the below report:

Emmons Corporation – Machining Department

Department Performance Report

For the Month of November 2016

“I just can’t understand all these unfavorable variances,” your manager complained to you. “When the big boss called me in, I thought she was going to give me a pat on the back for the great job that we had done in November. Instead, she handed me a copy of this report, read me the riot act, and pointed out to me that every variance was unfavorable! I need your help in countering the conclusions of this report.”

Your manager gives you the above report and you go back to your office to study and prepare the response for your manager. You know that direct labor wages and supplies are variable costs; supervision and depreciation are fixed costs, and maintenance and utilities are mixed costs. The fixed component of the original budget maintenance cost is $92,000. The fixed component of the original budget utilities cost is $11,700.

Required:

1. You recall studying flexible budgets in your amazing MBA program. Using a flexible budget approach, prepare the more appropriate performance report for your manager.
2. Based on your report in “a” above, how would you evaluate your department’s performance?

In a survey of MBA students, the following data were obtained on “students’ first reason for application to the school in which they matriculated.” Reason for Application School School cost or Quality Convenience Other Totals Enrollment Status Full Time 421 393 76 890 Part Time 400 593 46 1039 Totals 821 986 122 1929 (a) Develop a joint probability table for these data. (b) Use the marginal probabilities of school quality, school cost or convenience, and other to comment on the most important reason for choosing a school. (c) If a student goes full time, what is the probability that school quality is the first reason for choosing a school? (d) If a student goes part time, what is the probability that school quality is the first reason for choosing a school? (e) Are the enrollment status and the reason for application independent? Explain using probabilities.

•Exercise 1: It is assumed that 80% of the students pass the MBA 510 course. Calculate the following for a class of 15 students:

(a) the mean number of students expected to pass;

(b) the standard deviation;

(c) P(exactly 12 of the 15 students pass);

(d) P(at least 12 of the 15 students pass).

•Exercise 2: Five customers enter a store and make independent purchase decisions. The store’s records indicate that 20% of all customers who enter the store will make a purchase.         

(a) Does a general discrete probability distribution or the binomial distribution apply?

(b) Write the probability form applicable.  

Calculate the probability that:

(c) exactly 4 customers will make a purchase;

(d) less than 3 customers will make a purchase.

Please show all the work in Excel or Word.

Assignment Problem:

Matt Profitt, an MBA student, is studying companies that are going public for the first time. He is curious about whether or not there is a significant relationship between the size of the offering (in millions of dollars) and the price per share.

Size    108     4.4      3.5      8.6      139     228     47.5    5.5      175     12        51        66

Price   12        4          5          6          13        19        8.5      5          15        6          12        12        

a. Develop the appropriate scatterplot for the two variables in the Excel spreadsheet.

b. Based upon the visual inspection of the plot, what type (directional) of relationship do you anticipate between the dependent and independent variables? Offer a brief explanation why that makes theoretical sense.

Please use the example illustrated Tables 12.2 and 12.3 for guidance on the EXCEL steps appropriate to generate the information needed to address the remaining sections.

c. Calculate SS_XX,SS_YY, and SS_XY.

d. Calculate the estimated y intercept (b₀) and the estimated slope coefficient (b₁).

e. Interpret the estimate slope coefficient.

f. Construct the ANOVA appropriate for this regression model.

g. Calculate r².

h. Interpret the coefficient of determination.

i. Calculate s sub b1.

j. Calculate the correlation coefficient.

k. Test whether or not the population correlation coefficient (rho) differs from zero. Use alpha = 0.05.

Could you please just help me with J and K? Thank you so much!

Overview- Assume you have just earned an MBA and taken a position as an analyst with an investment bank. You are assigned to a team of analysts responsible for monitoring pharmaceutical companies. Your report would be used in formulating buy/sell recommendations on these companies.

Assignment- Select Teva Pharmaceutical Industries, Ltd. and Merck & Co. for comparative purposes. Prepare a three‐year comparative report and financial analysis on the two companies using the most recent financial data from each company's annual financial statements.

Requirements The report must include:

1. Description and background of companies and product lines

2. How they compare:

a) Financially 1. Working capital 2. Current ratio 3. Liquidity 4. Financial leverage 5. R&D Expenditures 6. Profitability 7. Out‐of‐theordinaryevents/transactions 8. Cash flow analysis 9. Return on assets (ROA) 10. Return on equity (ROE)

b) Operationally 1. Number of days in accounts receivable and accounts receivable turnover 2. Number of daysin inventory and inventory turnover 3. R&D percentage ofrevenue 4. Organic growth vs. growth through mergers and acquisitions 5. Off‐balance sheetobligations

3. Recommendations on how the companies could improve ROE

4. Conclusion as to financial strengths and weaknesses of each company

Ram Corporation purchased a new truck on January 1, 2020 for $50,000.  The truck is expected to last five years with a residual value of $10,000.  Using straight-line depreciation, show the effect on the income statement and balance sheet of this transaction over the next five years.

Income statement

2020                 2021                 2022                 2023                 2024

Depreciation expense    $8000               $8000               $8000               $8000               $8000

Balance Sheet

2020                 2021                 2022                 2023                 2024

Equipment                    $                      $                      $                      $                      $

Less: accumulated

  Depreciation               (                   )       (                 )       (                 )        (                 )        (                  )

Book value                    $                      $                      $                      $                      $

Part II – Chapter 8

                                    Company A                   Company B                   Company C

Days sales in receivables            8.3 days                        39.9 days                      60.3 days

Days sales in inventory              2.3 days                        45.8 days                      95.8 days

Debt/equity ratio                      34.8%                           107.5%                         62.3%

Times interest earned               14.5 times                    7.8 times                      4.5 times

Gross profit margin                   37%                              70%                              20%

Price/earnings ratio                   15                                3                                  18

Bold the correct answer in each of the questions below.

1)  Refer to the days sales in inventory.  If one of the companies above is McDonald's, one is Apple, and one is BMW Auto Sales, which is likely BMW?                             

            A             B            C   

2)  Which company is best able to meet its interest obligations?             

            A             B            C   

3)  If one of the companies above sells primarily on net 45 day sales terms with no discount offered for early payment, which is it likely to be?

            A             B            C   

4)  Assume one company is McDonald's, one is Wal-Mart, and the other is a high end jeweler, which is likely the jeweler?

            A             B            C   

5)  Which company has the least percentage of assets financed by owners?

            A             B            C   

6)  Which company apparently has investors worried about its future?

            A             B            C