A comparative balance sheet and income statement for Groton Company follow:

Groton Company
Comparative Balance Sheet
December 31, 2011 and 2010
2011 2010
  Assets
  Cash $ 5   $ 16   
  Accounts receivable 322   237   
  Inventory 166    208   
  Prepaid expenses 16    14   

  Total current assets 509    475   

  Property, plant, and equipment 517    438   
  Less accumulated depreciation (89)    (75)   

  Net property, plant, and equipment 428    363   

  Long-term investments 29    40   

  Total assets $ 966    $ 878   

  Liabilities and Stockholders' equity
  Accounts payable $ 305    $ 229   
  Accrued liabilities 74    84   
  Income taxes payable 80    71   

  Total current liabilities 459    384   
  Bonds payable 206    180   

  Total liabilities 665    564   

  Common stock 171    210   
  Retained earnings 130    104   

  Total stockholders’ equity 301    314   

  Total liabilities and stockholders' equity $ 966    $ 878   

Groton Company
Income Statement
For the Year Ended December 31, 2011
  Sales $ 764  
  Cost of goods sold 450  

  Gross margin 314  
  Selling and administrative expenses
220  

  Net operating income 94  
  Non operating items:
      Gain on sale of investments $ 5  
      Loss on sale of equipment (3) 2  

  Income before taxes 96  
  Income taxes
31  

  Net income $ 65  

     During 2011, Groton sold some equipment for $18 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $16 that had cost $11 when purchased several years ago. A cash dividend was paid during 2011 and the company repurchased $39 of its own stock. Groton did not retire any bonds during 2011.

Required:
1.

Using the indirect method, determine the net cash provided by/used by operating activities for 2011. (Negative amount should be entered with a minus sign.)

2.

Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2011. (Amounts to be deducted and negative amounts should be indicated with a minus sign.)

A comparative balance sheet and income statement for Groton Company follow:

During 2011, Groton sold some equipment for $19 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $8 when purchased several years ago. A cash dividend was paid during 2011 and the company repurchased $39 of its own stock. Groton did not retire any bonds during 2011.

Required: 1. Using the indirect method, determine the net cash provided by/used by operating activities for 2011. (Negative amount should be entered with a minus sign.)

2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2011. (Amounts to be deducted and negative amounts should be indicated with a minus sign.)

Sarah is the owner of a pre-school called “We Care for Kids” located in Sydney. Between January 2018 and December 2019, Sarah's business has boomed. Many parents were forced to place their names on a waiting list in the hopes of a future vacancy. Sarah’s business was chronically short staffed and consequently she was working very long hours. When Sarah heard that her sister, Jenny, who lived in Western Australia, had recently completed childcare qualifications at University, she sent her an email on the 17th of January 2020, which stated: “Dear Jenny, I am absolutely swamped at my pre-school and I desperately need help. Mum tells me that you have completed your childcare diploma at University. Would you be interested in coming to Sydney and working for me as a childcare worker? For $80 per week, I will rent you the granny flat at the rear of my house. The tenant who is living there now has given me notice – he is moving out by January 25. I would love to see you. Love, Sarah” Unfortunately, two days after Sarah sent Jenny the email, several children at the childcare centre were diagnosed with COVID 19. As a consequence, many parents withdrew their children from the pre-school and consequently business was drastically reduced. Sarah then had no need for any further staff, including Jenny. Meanwhile, Jenny was thrilled to receive Sarah’s email because many of her friends had gone to live and work in Sydney after finishing their University studies. By January 20, 2020 news of the COVID 19 outbreak at Sarah's childcare centre was being covered widely by the media. Jenny saw those media reports. Wanting to tie Sarah to the deal quickly, Jenny replied by posting a letter on January 21, as follows: “Dear Sarah, Thank you very much for this opportunity. I have resigned my job here and have bought a plane ticket. I leave on January 23 to go to Queensland for a beach holiday and I will arrive in Sydney on Wednesday, February 5, 2020. I will be ready to start work for you straight away. Also thank you for your offer of the rental of the granny flat – I accept with pleasure. Thanks again, love, Jenny” Sarah received this letter on February 1, 2020. However, on January 28, Sarah sent an email to Jenny describing what had happened to her business and telling her that there was no job for her at this time. Unfortunately, Jenny did not read this email because she had already left for Queensland. Whilst she was travelling, she did not access her email. Advise Jenny whether a binding contract exists.

please provide answers with issue, law, application and conclusion in regards to the contract law.

Sakura PLC is a leading investment company in Australia and you the below details relating to the capital structure of the company.
Information concerning raising new capital
Bonds
$1,000
Face value
13%
Coupon Rate (Annual Payments)
20
Term (Years)
$25
Discount offered (required) to sell new bonds
$10
Flotation Cost per bond
Preference Shares
11%
Required rate to sell new preference shares
$100
Face Value
$3
Flotation cost per share
Ordinary Shares
$83.33
Current Market Price
$4.00
Discount on share price to sell new shares
$5.40
Flotation Cost per bond
$5.00
2019 - Proposed Dividend
Dividend History
$4.63
2019
$4.29
2018
$3.97
2017
$3.68
2016
$3.40
2015
Current Capital Structure
Extract from Balance Sheet
$1,000,000
Long-Term Debt
$800,000
Preference Shares
$2,000,000
Ordinary Shares
Current Market Values
$2,000,000
Long-Term Debt
$750,000
Preference Shares
$4,000,000
Ordinary Shares
Tax Rate
33%
Risk Free Rate
5%
3
a) Calculate the cost associated with each new source of finance. The firm has no retained earnings available.
b) Calculate the WACC given the existing weights
The financial controller does not believe the existing capital structure weights are appropriate to minimise the firm’s cost of capital in the medium term and believes they should be as follows
Long-term debt 40%
Preference Shares 15%
Ordinary Shares 45%
c) What impact do these new weights have on the WACC?
The firm is considering the following investment opportunity. (2020-2027)
Data is as follows
Initial Outlay
$1,600,000
Upgrade
$700,000
End of Year 4
Upgrade -
350,000
Increased sales units per annum - (Year 5-8)
Working Capital
$45,000
Increase required
Estimated Life
8
Years
Salvage Value
$60,000
Depreciation Rate
0.125
For tax purposes
The machine is fully depreciated by the end of its useful life
Other Cash Expenses
$60,000.00
Per annum (Years 1-4)
Other Cash Expenses
$76,000.00
Per annum (Years 5-8)
Production Costs
$0.15
Per Unit
Sales price
$0.75
Per Unit (Years 1-4)
Sales price
$1.02
Per Unit (Years 5-8)
Prior sales estimates
Year
Sales
2010
520000
2011
530000
2012
540000
2013
560000
2014
565000
2015
590000
2016
600000
2017
610000
2018
615559
2019
659000
2020
680000
4
d) Calculate the Net Present Value, Internal Rate of Return and Payback Period
The financial controller is considering the use of the Capital Asset Pricing Model as a surrogate discount factor. The risk-free rate is 5 per cent.
Year
Stock Market
Share
Index
Price
2010
2000
$15.00
2011
2400
$25.00
2012
2900
$33.00
2013
3500
$40.00
2014
4200
$45.00
2015
5000
$55.00
2016
5900
$62.00
2017
6000
$68.00
2018
6100
$74.00
2019
6200
$80.00
2020
6300
$83.33
e) Calculate the CAPM
f) Explain why this figure may differ from that calculated above (i.e. Cost of equity – Ordinary Shares)
5
Question 3
Previous Years
Sales
1400
Retained Earnings
170
Costs
900
Dividends
180
Tax rate
0.3
Assets
Liabilities/Equity
Current Assets
Current Liabilities
Cash
460
Creditors
600
Debtors
540
Short Term Notes
100
Inventory
600
Non-Current Assets
Non-Current Liabilities
PP&E
2000
Debentures
900
Total Assets
3600
Owner’s Equity
Retained Profits
1000
Ordinary Shares
1000
3600
Percentage of Sales Approach – Assume all spontaneous variables move as a percentage of sales.
a) Given an expected increase in sales of 12%, what is the amount of external funding required?
b) To maintain the current debt/equity ratio how much debt and how much equity is required?
c) Assuming the company is only operating at 95% capacity, how much new funding (if any) is required?

A medical cyclotron used in the production of medical isotopes
accelerates protons to 6.5 MeV. The magnetic field in the
cyclotron is 1.2 T.
a. What is the diameter of the largest orbit, just before the protons
exit the cyclotron?
b. A proton exits the cyclotron 1.0 ms after starting its spiral
trajectory in the center of the cyclotron. How many orbits
does the proton complete during this 1.0 ms?

A firm uses INR 50 million of debt, INR 15 million of short-term debt, and INR 90 million of common equity to finance its assets. If the before-tax cost of debt is 10%, after-tax cost of short-term debt is 8%, and the cost of common equity is 16%, calculate the weighted average cost of capital for the firm assuming a tax rate of 20%.

Draw a graph that shows the demand for a single stadium that holds games for the St. Louis Cardinals. Assume that the supply curve for seating is horizontal and then vertical. Further assume that you are graphing the attendance of one particular game on the horizontal axis. Graphically show and verbally explain why the price and quantity might be different after Dexter Fowler (star player) has joined the team than it was before.

Two polls were taken for the approval of Donald Trump. The first was a random selection taken before the events at Charlottesville of 1000 people and 440 indicated support for Trump. The second was taken immediately after Charlottesville where 1000 people were randomly selected and 380 expressed support for Trump. Test against a 95% probability Zα/2 = 1.96 that the difference was due to random variation.

You are a shareholder in a corporation. The corporation earns $4 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 34% and the personal tax rate on dividend income is 25%.

1. How much is left for you after all taxes are paid?

2. What is your total effective tax rate?