Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $ 5,300,000. The product is expected to generate profits of $ 1,400,000 per year for ten years. The company will have to provide product support expected to cost $ 95,000 per year in perpetuity. Assume all income and expenses occur at the end of each year.

a. What is the NPV of this investment if the cost of capital is 4.58 %​? Should the firm undertake the​ project? Repeat the analysis for discount rates of 1.21 % and 20.56 %​, respectively.

b. How many IRRs does this investment opportunity​ have? ​ (Hint: Consider the two alternative discount rates we used in our analysis in part​ a.)  

c. Can the IRR rule be used to evaluate this​ investment? Explain.

1. Vertical Analysis of Income Statement

   Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

   	Current Year		Previous Year
   Sales	$580,000		$522,000
   Cost of goods sold	324,800		261,000
   Selling expenses	104,400		104,400
   Administrative expenses	110,200		93,960
   Income tax expense	17,400		26,100

   a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

   Innovation Quarter Inc.
   Comparative Income Statement
   For the Years Ended December 31
   	Current year Amount	Current year Percent	Previous year Amount	Previous year Percent
   Sales	$580,000	%	$522,000	%
   Cost of goods sold	324,800	%	261,000	%
   Gross profit Income from operations Net income Total operating expenses	$	%	$	%
   Selling expenses	104,400	%	104,400	%
   Administrative expenses	110,200	%	93,960	%
   Gross profit Income from operations Net income Total operating expenses	$	%	$	%
   Gross profit Income from operations Net income Total operating expenses		%		%
   Income tax expense	17,400	%	26,100	%
   Gross profit Income from operations Net income Total operating expenses	$	%	$	%

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   b. The vertical analysis indicates that the cost of goods sold as a percent of sales

   • increased
   • decreased
   by 6 percentage points, while selling expenses
   • increased
   • decreased
   by 2 percentage points, and administrative expenses
   • increased
   • decreased
   by 1 percentage points. Thus, net income as a percent of sales
   • increased
   • decreased
   by 3 percentage points.

We live in a fast-changing world. We often hear that innovation is what’s needed to address the global challenges and local issues that we’re facing, to seize new and unexpected opportunities as they arise and to make our world a better place. Therefore, new invention derived from research developments, technical knowledge and tools independent of product and service initiatives. a. Compare disruptive and sustaining technologies. Support your answer with relevant examples. b. Explain how the Internet and WWW caused business disruption. c. Describe Web 1.0 along with ebusiness and its associated advantages. please type it do not handwritten . and not copy from chegg

Week 5 Discussion "Develop an Innovation Framework" Please respond to the following: Develop a simple innovative framework for a business concept of your choice using the five (5) key questions (what, when, where, who, how). Next predict whether or not this strategy will require an incremental change or radical change. Provide support for your response. Discuss three (3) ways that an organization could benefit using the search strategies of Zone 1 (Exploit), Zone 2 (Explore), Zone 3 (Reframing), and Zone 4 (Co-evolution) to explore the best space for their innovative strategy. Provide support for your response.

1.

Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

b. The vertical analysis indicates that the cost of goods sold as a percent of sales __________ by 5 percentage points, while selling expenses ____________ by 2 percentage points, and administrative expenses ___________ by 1 percentage points. Thus, net income as a percent of sales ________ by 2 percentage points.

2.

Vertical Analysis of Balance Sheet

Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follows:

Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place.

2.

Horizontal Analysis of the Income Statement

Income statement data for Winthrop Company for two recent years ended December 31, are as follows:

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.

b. The net income for Winthrop Company increased between years. This increase was the combined result of an ______ in sales and _____ percentage _____ in cost of goods sold. The cost of goods sold increased at a ______ rate than the increase in sales, thus causing the percentage increase in gross profit to be ______ than the percentage increase in sales.

FRUGAL SANITARY TOWELS

ARUNACHALAM MURUGANANTHAM AIMS TO TRANSFORM THE LIVES OF INDIAN WOMEN WITH A FUNDAMENTAL INNOVATION

High school drop-out and welder Arunachalam Muruganantham has developed a low-cost sanitary towel the hard way. In India, only 12 percent of women can afford to use sanitary towels for their monthly periods, the rest making do with old rags and even husks or sand. As Muruganantham’s wife explained to him, if she bought the expensive sanitary towels on the market, the family would have to do without milk. But the cost for many women is infections and even cervical cancer. Muruganantham determined to find a cheap way of supplying Indian women with proper sanitary towels. In Indian society, however, the issue was taboo. The local hospital was unhelpful, and even Muruganantham’s wife and sisters refused to talk about the problem. A survey of college girls failed. Muruganantham’s prototypes were scorned by his wife. At his wits’ end, Muruganantham experimented on himself, carrying a bladder inflated with goat’s blood while wearing one of his own sanitary towels and women’s undergarments. His tests while walking and cycling around the village created a local scandal. His wife moved out. Muruganantham characterized the issue as a ‘triple-A problem – Affordability, Availability and Awareness’. But after four years of research, he finally built a machine for producing sanitary towels at less than half the price of those offered by rivals such as Procter & Gamble and Johnson & Johnson. The machines are cheap and handoperated, enabling small-scale local production by units employing six to ten women each. Muruganantham believes that the small businesses using his machines could create up to one million jobs: ‘The model of massproduction is outdated. Now it is about production by the mass of people.’ Muruganantham sells the machines to NGOs, local entrepreneurs, charities and selfhelp groups, who produce the sanitary towels without fancy marketing. A manual machine costs around 75,000 Indian rupees (£723, €868, $1084) – a semi-automated machine costs more. Often the women who make the towels are the best marketers, passing on the benefits by wordof-mouth. Towels are often sold singly rather than in bulk packets and are even sold through barter. Muruganantham explains the marketing: ‘It’s done silently and even the male members of their families don’t know.’ Slowly but surely his machines spread all over India with operations in 23 states. By 2015, his company, Jayaashree Industries, had expanded to 17 other countries including Kenya, Bangladesh, Nigeria, and Myanmar. He employs over 20,000 women in rural India and the enterprise has been valued at over a billion dollars by some analysts. Muruganantham has become a globally renowned frugal innovator and motivational speaker. His machine was entered in a competition for a national innovation award and came first out of 943 entries; he received the award by the then President of India. He was also ranked by Time magazine as one of 100 most influential people in the world in 2014 and was invited to give a lecture at Harvard. His wife has moved back in with him. Muruganantham was confident about the sustainability of his model: ‘We compete very comfortably with the big giants (such as Procter & Gamble). That’s why they call me the corporate bomber.

Q1

- Identify the various features of Muruganantham’s approach that make his sanitary towel business a typical or not so typical ‘frugal innovation?

Tony and Jeannie Nelson are married and file a joint return. They have four children whose ages are: 12,15,19 & 23. The three youngest live at home with their parents and qualify as their dependents. The oldest Roger got married on 5/5 2019 and lives with his wife, Jane. The 19-year old Tabitha is studying Fine Arts at Savannah College of Art & Design. During the summer she helps her mother put together the art exhibits. They provide you with the following information regarding their 2019 upcoming tax return:

1) Tony Nelson is an aerospace engineer he runs an engineering firm, Nelson Engineering (NE), as a sole proprietorship since 2010

. a) NE has very lucrative contracts with numerous aerospace companies and during 2019 it earned $702,000.

b) NE rents an office downtown where they meet with clients and conducts business. The rent includes all utilities. NE paid $38,000 in rent expense in 2019. In December 2019 the landlord offered to maintain the same yearly rent cost and Tony could receive an additional month's rent for free if he prepaid his 2020 year rent in advance. Tony agreed and paid an additional $38,000 on December 1, 2019 to cover January 2020 through January 2021 rent.

c) NE obtained a business loan from SunTrust Bank and paid $2,400 in prepaid interest for June 1, 2019 through May 30, 2020.

d) NE has a few employees, including an electrical engineer, a part-time engineering intern and an office manager. The combined wages for these employees is $196,000. Payroll taxes including for these employees is $15,000.

e) Tony took different business clients to see several home Miami Heat games followed by dinners at nearby restaurants where business was discussed. The meals were not considered lavish. The total cost for the Heat tickets and accompanying meals were $1,200 and $800, respectively.

f) In March 2019, Tony flew to a two-day engineering convention held in Phoenix, AZ requiring a two-night hotel stay. While there, Tony noted that the convention dress code was formal when he thought it would be casual. Tony immediately purchased a business suit for $300 (not considered lavish) at a nearby department store. All food costs were covered by the convention organizers. Other trip costs that Tony paid were airplane ticket $400 and hotel lodgings cost $200/night.

g) The depreciation for the year on the fixed assets owned by NE are estimated to total $3,400. Exam 2 – Take Home 2 h) All of NE’s business transactions are properly documented and supported by receipts/invoices. In addition to deductible portion of the items listed above the business will have an additional $4,400 of deductible other expenses.

The post-closing trial balance of M/S. Sun Traders at 31 March 2020 is set out below
Sun Tarders
Post Closing Trial Balance
As on 31St March 2020

On the above date, Akbar retired, and the following arrangements were agreed upon:
a. Goodwill of the firm is to be valued at OMR 24,000.
b. The assets and liabilities are to be valued as: Stock OMR 12,000, Sundry Debtors
OMR.10,500, Land and Building OMR 22,600, Plant and Machinery OMR25,000 and
Sundry Creditors OMR 14,000.
c. To bring into books unrecorded investments OMR 1,000
d. Babar and Khan were to introduce OMR20,000 and OMR5,000 respectively into the business and OMR16,200 was to be paid immediately and balance transfer to loan accounts.
e. Bills payable were unrecorded to the extent of OMR1,000
f. Babar and Khan agreed not to retain goodwill in books.
g. Akbar, Babar and Khan profit and loss sharing ratio are 4:2:1 respectively.

You are required to pass necessary Journal entries with proper narrations to record the above transactions. Prepare revaluation account, capital accounts, bank account and financial position of the new firm as at 1st April 2020, after all above arrangement have been completed. Write down the impact of retirement with explanations values in the new balance sheet.

The post-closing trial balance of M/S. Sun Traders at 31 March 2020 is set out below
Sun Tarders
Post Closing Trial Balance
As on 31St March 2020

On the above date, Akbar retired, and the following arrangements were agreed upon:
a. Goodwill of the firm is to be valued at OMR 24,000.
b. The assets and liabilities are to be valued as: Stock OMR 12,000, Sundry Debtors
OMR.10,500, Land and Building OMR 22,600, Plant and Machinery OMR25,000 and
Sundry Creditors OMR 14,000.
c. To bring into books unrecorded investments OMR 1,000
d. Babar and Khan were to introduce OMR20,000 and OMR5,000 respectively into the business and OMR16,200 was to be paid immediately and balance transfer to loan accounts.
e. Bills payable were unrecorded to the extent of OMR1,000
f. Babar and Khan agreed not to retain goodwill in books.
g. Akbar, Babar and Khan profit and loss sharing ratio are 4:2:1 respectively.

You are required to pass necessary Journal entries with proper narrations to record the above transactions. Prepare revaluation account, capital accounts, bank account and financial position of the new firm as at 1st April 2020, after all above arrangement have been completed. Write down the impact of retirement with explanations values in the new balance sheet.

For this assignment, you will be analyzing the Java™ code in the linked Week 3 Analyze Assignment Zip File, and predicting the results. You will also examine both the code and the output for inconsistencies and clarity. This Java™ code includes examples of for, while, and do-while loops.

Carefully read through the code line by line, then answer the following questions in a Microsoft^® Word document:

1. What is the output of the program as it is written?
2. What improvement(s) could be made to this code to make the output clearer or more accurate, or to make the code easier to maintain?

Note: You do not have to make the improvements in the Java™ program, although you certainly may. For this assignment, simply describe the things you see that would need to be improved to elevate the code and output to a more professional level. For the code, consider variable names and hardcoding. For the output, consider formatting/punctuation, repetition, accuracy of information, and wording.

/**************************************************************************************
* Program: PRG/420 Week 3
* Purpose: Week 3 Analyze Assignment
* Programmer: Iam A. Student   
* Class: PRG/420   
* Creation Date: 10/22/17
******************************************************************************************
* Program Summary: For, while, and do-while loops
*
* This program demonstrates the syntax for the for, while, and do-while loops. It also
* contains comments that explain why a programmer would use a for loop over a while or do-while
* loop.
*
* Notice the increment operator (i++) and also notice the copious use of println() statements.
* Using System.out.println() is an excellent way to debug your code--especially if your loop code
* is giving unexpected results.
*****************************************************************************************/

package PRG420Week3_AnalyzeAssignment;

public class PRG420Week3_AnalyzeAssignment {

public static void main(String[] args) {
  
// for loops are a good choice when you have a specific number of values
// you want to iterate over and apply some calculation to.
System.out.println("FOR LOOP - Here are the taxes on all 10 prices:");
  
double taxRate = 0.08;
for (int price=1; price<=10; price++) {
System.out.println("The 8% tax on " + price + " dollar(s) is " + "$" + (price * taxRate));
}
System.out.println(""); // Leave a blank space
  
// while loops are a good choice when you're looking through a pile of values
// and want to execute some logic while some condition is true.
// while loops MAY OR MAY NOT EVER EXECUTE, depending on the counter value.
int dollars=1;
System.out.println("WHILE LOOP - Here are the taxes on prices less than $5:");
while (dollars < 5) {
System.out.println("The 8% tax on " + dollars + " dollar(s) is $" + (dollars * taxRate));
dollars++;
}
System.out.println(""); // Leave a blank space
  
// do-while loops are also a good choice when you're looking through a pile of values
// and want to execute some logic while some condition is true.
// do while loops ALWAYS EXECUTE AT LEAST ONCE, no matter what the counter value.
// For example, in the code below, we want to print out the tax only on those
// amounts smaller than $1. But because we're using the do-while loop, the code
// will execute the body of the loop once before it even checks the condition! So
// we will get an INCORRECT PRINTOUT.
dollars=1;
  
System.out.println("DO-WHILE LOOP - Here are the taxes on prices less than $1:");
  
do {
System.out.println("The 8% tax on " + dollars + " dollar(s) is $" + (dollars * 0.08));
dollars++;
} while (dollars < 1);
}
}