1. The table given below summarizes the 2019 income statement and end-year balance sheet of Drake’s Bowling Alleys. Drake’s financial manager forecasts a 10% increase in sales and costs in 2020. The ratio of sales to average assets is expected to remain at 0.40. Interest is forecasted at 5% of debt at the start of the year. At the end of 2018 debt was $2,400,000 and assets were $6,960,000. (10 points) Income Statement $ in thousands Sales $ 2,900 (40% of average assets) Costs 2,175 (75% of sales) Interest 120 (5% of debt at start of year) Pretax profit 605 Tax 242 (40% of pretax profit) Net income $ 363 Balance Sheet $ in thousands Net assets $ 7,540 Debt $ 2,400 Equity 5,140 Total $ 7,540 Total $ 7,540 a. What is the expected level of assets at the end of 2020? b. If the company pays out 50% of net income as dividends, how much cash will Drake need to raise in the capital markets in 2020? Assumes debt remains constant. c. If Drake is unwilling to make an equity issue, what will be the debt ratio at the end of 2020?

The table given below summarizes the 2019 income statement and end-year balance sheet of Drake’s Bowling Alleys. Drake’s financial manager forecasts a 10% increase in sales and costs in 2020. The ratio of sales to average assets is expected to remain at 0.40. Interest is forecasted at 5% of debt at the start of the year. At the end of 2018 debt was $2,400,000 and assets were $6,960,000.

Olin Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The forecast income statement for the year ending December 31, 2020, is as follows:

The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur fixed costs of $7,050,150.

Under the current policy of using a network of sales agents, calculate Olin Beauty Corporation’s break-even point in sales dollars for the year 2020.

Calculate the company's break-even point in sales dollars for the year 2020 if it hires its own sales force to replace the network of agents. (Round answer to the nearest whole dollar, e.g. 5,275.)

On January 1, 2020, LMB, Inc. purchased some equipment for $42,000. In order to prepare the equipment for use, LMB had to pay $8,000 to have the equipment installed. LMB aos estimates that the equipment will be used for 5 years and that it can be sold to a smaller company for parts after 5 years. It expects to sell the parts for $5,000. LMB will use the equipment for 5 years but also estimates that it will produce 10,000 units in total during that time.

LMB's units of production were as follows:

2020: 2,000 units

2021: 4,000 units

2022: 2,000 units

2023: 1,500 units

2024: 500 units

Using the Units of Production method, calculate depreciation expense for the year ended December 31, 2020 (first blank) and for the year ended December 31, 2021 (second blank).  

In the third blank, fill in the total accumulated depreciation after the 2nd year (12/31/2020).

In the fourth blank, fill in the net book value of the equipment on 12/31/2021.

Question 11 options:

A reason to hold a portfolio of S&P 500 shares is

1. How do B and T cells recognize specific antigens?
2. What are two types of acquired immunity? Describe each and give an example.
3. Explain the process from the activation of the B cell to the production of antibodies.
4. How do cytotoxic T cells kill infected cells?

Thinking about Industrial/Organizational Psychology

STEP 1: Respond to ONE of the following questions in a post of at least 200 words:

After reading this module, what topic or topics in I/O psychology seemed most interesting to you? Why? What other things would you like to know about this topic?

One of your friends started a window washing business a few years ago, and his business has slowly grown. He’s now at the point where he needs to hire employees. What advice would you give him about how to conduct an interview? Use recommendations from your reading to support your answer.

Based on the Case below, Write a brief explanation that explains why the case represents its particular ACHE competency domain. (Be sure that the explanation justifies the assigned competency domain based upon the facts and circumstances of the case.)

Case:

Case 1: Communication and Relationship Management Memorial Hospital was moving rapidly to finalize its plans for new multiple-specialty outpatient center located 15 miles from the hospital campus. Strategically this was exactly what the health system needed to do. First, it would provide a presence in a community that traditionally was served by one of Memorial’s major competitors. And second, increased the ambulatory care services of the health system that lagged behind other health systems in this regard. The plan called for seven specializations to provide services to the patient and community population of this new area and to help channel patients that needed more intense treatment and care to the hospital itself. Six departments had agreed to this arrangement and were actively developing their budgets and management resources to cover this new location. But the Department of Psychiatry, although an initial service slated for the ambulatory facility, was now backing out of the agreement suggesting that they could not adequately resource the operation and felt it would significantly increase their overall patient volume. The CEO of the hospital understood that Psychiatry needed to be part of the service mix in order for this new facility to succeed. The market research conducted a year earlier to provide information on community needs, clearly suggested this service would be well received and perceived by people as a value addition to the other medical specialties being offered. With this sense of urgency in mind, the CEO arranged to meet with the Chair of Psychiatry and discuss the issue. The meeting took place within the next week and it was not a comfortable exchange according to the Chair. He felt pressured by the CEO to come on-board and develop the necessary budgetary and operational plans to be part of the new ambulatory center. From the perspective of the CEO, the meeting was equally non-productive. He reported that the Chair seemed to miss the critical points of why Psychiatry was needed as part of the service mix. Two subsequent meetings took place by both individuals with significant ‘back and forth’ between the two men until an agreement was met. The Chair of Psychiatry agreed that his department would join the other services, but that it needed to be phased-in process. The CEO, although disappointed that Psychiatry would require six to eight months for full implementation into the facility, understood that this was the most reasonable approach he could expect. The final agreement allowed Memorial Hospital to eventually offer all six services to its targeted community. It did require modifying some public relations materials and gaining the support of the other five services that this special arrangement was necessary to achieve the ultimate complement of services. The Department of Psychiatry gained the time it felt it needed to align its resources to add this service to its roster. The result was that Psychiatry actually achieved its adjusted operational program for the new facility in four and a half months, a good two months ahead of its original target date to begin operations. It is difficult to know exactly why the CEO and the Chair of Psychiatry arrived at their agreement. Both individuals did not appear too pleased with their initial exchange. Each seemed to have his own agenda without much interest in understanding the expectations of needs of the other party. It took two more projected meetings for a final agreement to be outlined. It is not clear either, what if any, long term affect this had for either the hospital administration or the leadership of the Department of Psychiatry. The general opinion throughout the administration and medical officers of the health system was the CEO paid a heavy political price for getting Psychiatry on board.

Based on the Case below, Write a brief explanation that explains why the case represents its particular ACHE competency domain. (Be sure that the explanation justifies the assigned competency domain based upon the facts and circumstances of the case.)

Case:

Case 1: Communication and Relationship Management

Memorial Hospital was moving rapidly to finalize its plans for new multiple-specialty outpatient center located 15 miles from the hospital campus. Strategically this was exactly what the health system needed to do. First, it would provide a presence in a community that traditionally was served by one of Memorial’s major competitors. And second, increased the ambulatory care services of the health system that lagged behind other health systems in this regard.

The plan called for seven specializations to provide services to the patient and community population of this new area and to help channel patients that needed more intense treatment and care to the hospital itself. Six departments had agreed to this arrangement and were actively developing their budgets and management resources to cover this new location. But the Department of Psychiatry, although an initial service slated for the ambulatory facility, was now backing out of the agreement suggesting that they could not adequately resource the operation and felt it would significantly increase their overall patient volume.

The CEO of the hospital understood that Psychiatry needed to be part of the service mix in order for this new facility to succeed. The market research conducted a year earlier to provide information on community needs, clearly suggested this service would be well received and perceived by people as a value addition to the other medical specialties being offered. With this sense of urgency in mind, the CEO arranged to meet with the Chair of Psychiatry and discuss the issue. The meeting took place within the next week and it was not a comfortable exchange according to the Chair. He felt pressured by the CEO to come on-board and develop the necessary budgetary and operational plans to be part of the new ambulatory center. From the perspective of the CEO, the meeting was equally non-productive. He reported that the Chair seemed to miss the critical points of why Psychiatry was needed as part of the service mix.

Two subsequent meetings took place by both individuals with significant ‘back and forth’ between the two men until an agreement was met. The Chair of Psychiatry agreed that his department would join the other services, but that it needed to be phased-in process. The CEO, although disappointed that Psychiatry would require six to eight months for full implementation into the facility, understood that this was the most reasonable approach he could expect.

The final agreement allowed Memorial Hospital to eventually offer all six services to its targeted community. It did require modifying some public relations materials and gaining the support of the other five services that this special arrangement was necessary to achieve the ultimate complement of services. The Department of Psychiatry gained the time it felt it needed to align its resources to add this service to its roster. The result was that Psychiatry actually achieved its adjusted operational program for the new facility in four and a half months, a good two months ahead of its original target date to begin operations. It is difficult to know exactly why the CEO and the Chair of Psychiatry arrived at their agreement. Both individuals did not appear too pleased with their initial exchange. Each seemed to have his own agenda without much interest in understanding the expectations of needs of the other party. It took two more projected meetings for a final agreement to be outlined. It is not clear either, what if any, long term affect this had for either the hospital administration or the leadership of the Department of Psychiatry. The general opinion throughout the administration and medical officers of the health system was the CEO paid a heavy political price for getting Psychiatry on board.