Solano Company has sales of $800,000, cost of goods sold of $520,000, other operating expenses of $35,000, average invested assets of $2,350,000, and a hurdle rate of 11 percent.

2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.) (Enter your ROI percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34%.))

   a. Company sales and cost of goods sold increase by 40 percent.     

    b. Operating expenses decrease by $10,000.       

   c. Operating expenses increase by 10 percent.

    d. Average invested assets increase by $450,000.

    e. Solano changes its hurdle rate to 17 percent.

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 5,200 60% Conversion costs $ 8,500 55% A total of 7,800 units were started and 7,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $ 95,000 Conversion costs $ 169,200 The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs. The total cost transferred from the first processing department to the next processing department during the month is closest to:

Emu Ltd was contracted to build a new apartment block for Kangaroo Ltd for $36,000,000. Payment of three $12,000,000 instalments were due and paid on June 30 of each year. The expected and actual costs at the end of each year are detailed as follows: Year Expected Actual 2020 8,000,000 8,000,000 2021 13,000,000 15,000,000 2022 10,000,000 10,000,000 Total 31,000,000 33,000,000 Page 6 of 10 Note: The outcome the project can be measured reliably. Required: i. Calculate the percentage completion using the cost method at the end of each year (use percentages of 2 decimal places). ii. Calculate the gross profit (loss) and the revenue to be recognised each year (round to the nearest dollar) using the cost method. iii. Prepare the appropriate journal entries for year 2020 only. (4.5 marks)

The Mayo Clinic in Rochester is evaluating two different computer systems for handling provider claims. There are no incremental revenues attached to the projects, so the decision will be made on the basis of the present value of costs. Mayo's corporate cost of capital is 10 percent. Here are the net cash flow estimates in thousands of dollars:

Year System X System Y

0 -$500 -$2,500

1 -$1,500 -$300

2 -$1,250 -$300

3 -$300 -$300

Please show work in Excel

An analyst has collected the following information regarding Christopher Co.:

Given this information, calculate the company's WACC in percentage. Round it to two decimal places.

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 __ percentage points, while selling expenses___by ___percentage points, and administrative expenses_____by ___percentage points. Thus, net income as a percent of sales___by __percentage points.

The Spitfire Model Airplane Company has the following modified income statement ($000) at 100,000 units of production.

1. What are Spitfire's contribution margin and dollar breakeven point? Enter your contribution margin answer in decimals and not in percentage. Enter your break-even sales answer in whole dollars. For example, an answer of $1 thousand should be entered as 1,000, not 1. Do not round intermediate calculations.

   CM (to two decimal places)
   SB/E (to the nearest dollar)	$

2. Calculate Spitfire's current DFL, DOL, and DTL. Round the answers to two decimal places. Do not round intermediate calculations.

Non-Value-Added Activities: Non-Value-Added Cost

Thayne Company has 28 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity:

Required:

Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity.

he body temperatures of a group of healthy adults have a​ bell-shaped distribution with a mean of

98.21degrees°F

and a standard deviation of

0.66 degrees°F.

Using the empirical​ rule, find each approximate percentage below.

a. Approximately

what ​%

of healthy adults in this group have body temperatures within 1 standard deviation of the mean 97.55 and 98.87

11

standard

deviationdeviation

of the​ mean, or between

97.5597.55degrees°F

and

98.8798.87degrees°F.

​(Type an integer or a decimal. Do not​ round.)

he body temperatures of a group of healthy adults have a​ bell-shaped distribution with a mean of

98.2198.21degrees°F

and a standard deviation of

0.660.66degrees°F.

Using the empirical​ rule, find each approximate percentage below.

a. Approximately

nothing ​%

of healthy adults in this group have body temperatures within

11

standard

deviationdeviation

of the​ mean, or between

97.5597.55degrees°F

and

98.8798.87degrees°F.

​(Type an integer or a decimal. Do not​ round.)

he body temperatures of a group of healthy adults have a​ bell-shaped distribution with a mean of

98.2198.21degrees°F

and a standard deviation of

0.660.66degrees°F.

Using the empirical​ rule, find each approximate percentage below.

a. Approximately

nothing ​%

of healthy adults in this group have body temperatures within

11

standard

deviationdeviation

of the​ mean, or between

97.5597.55degrees°F

and

98.8798.87degrees°F.

​(Type an integer or a decimal. Do not​ round.)

he body temperatures of a group of healthy adults have a​ bell-shaped distribution with a mean of

98.2198.21degrees°F

and a standard deviation of

0.660.66degrees°F.

Using the empirical​ rule, find each approximate percentage below.

a. Approximately

nothing ​%

of healthy adults in this group have body temperatures within

11

standard

deviationdeviation

of the​ mean, or between

97.5597.55degrees°F

and

98.8798.87degrees°F.

​(Type an integer or a decimal. Do not​ round.)

he body temperatures of a group of healthy adults have a​ bell-shaped distribution with a mean of

98.2198.21degrees°F

and a standard deviation of

0.660.66degrees°F.

Using the empirical​ rule, find each approximate percentage below.

a. Approximately

nothing ​%

of healthy adults in this group have body temperatures within

11

standard

deviation

of the​ mean, or between

97.55.55degrees°F

and

98.87 degrees°F.

​(Type an integer or a decimal. Do not​ round.)

QUESTION 1
a) In order to improve health care delivery in Ghana, among other things, the Government of Ghana in 2012
signed a contract with an Israeli construction company - Messrs Engineering and Development Consultant
to build a 650-bed medical facility. Construction began in April 2013 as a turnkey project. In 2015, the
University of Ghana, which had provided a 400-acre land for the construction of the hospital, established a
Special Purpose Vehicle (SPV) that will operate the facility. The name of the company is the University of
Ghana Medical Centre (UGMC) Limited. UGMC was completed in August 2017 and requires about 800
personnel when it is fully operational. The first phase of the project is priced at $217 million. The second
phase of the project requires about $50 million.
i. According to the typical features of project finance, does the project described above fit the
description of project finance? [4 marks]
ii. What is a turnkey contract and who does a Project company sign one with?
[3 marks]
iii. Under what conditions can the procurement of funds for the second phase of the project be termed
as mezzanine debt? [3 marks]
iv. Using probable scenarios, describe how the project may be affected by political and commercial
risks. [5 marks]
b) Assume that during the second phase of UGMC, an equipment that currently costs $950,000 is required. An
alternative will be to lease the equipment for a rental of $320,000 for 5 years. The interest rate is the last
two digits of your Students ID. Which is a better option for UGMC, lease or buy?
[5 marks]
[Total = 20 mark