A) Relying STRICTLY on our classroom discussion: the US corporate tax rate was recently reduced from 35% to 21%. In the near future, would you expect the target (optimal) D/V ratios of US companies to increase or decrease as the result of this change? (2-3 sentences)

B) What LEGISLATIVE change (i.e. a law or a regulation), if adopted, would most likely cause the target (optimal) D/V ratios of US companies to move in the OPPOSITE direction compared to the one you predicted in part (A)? (2-3 sentences)

C) Relying STRICTLY on our classroom discussion: Assume US personal tax rates on capital gains will be reduced next month. In the near future, would you expect the propensity to pay dividends among US companies to increase or decrease as the result of this change? (2-3 sentences)

D) The need for financial flexibility is sometimes used as explanation for the tendency of US firms to utilize LOWER D/V ratios compared to the (optimal) target ratios based on the trade-off between tax benefits and distress- or agency-related drawbacks associated with debt financing. Give one argument for why the need for financial flexibility is likely NOT the reason for relatively low D/V ratio utilized by Walmart. (2-3 sentences)

Consider the following scenario:

The privately owned Baker Company was founded in 1960. The company manufactures kitchen cabinets and has been very successful, expanding from one facility to twelve facilities in the same and other states. All facilities but the original are located near interstate highways. The original facility, which is no longer the headquarters, is in a downtown area of a major city (which grew up around it) with relatively high real-estate taxes. It has had a negative contribution margin and a net loss for the last five years. The founder is retired and three of his children want to close the facility. The fourth does not, because it "was Dad's first place and I went there every day after school." She believes they can bring the facility back to profitability if the city's downtown revitalization project succeeds and they dedicate the first floor of the facility to retail.

Consider:

• Your definition for "negative contribution margin."
• Whether the fact that the facility is not near an interstate makes a difference in the decision.
• Would it make a difference if the company were publicly traded?
• Might there be additional costs, in addition to revenues, to convert the first floor of the facility to retail?
• What risks may be associated with leasing to retail stores?
• What is your recommendation? Close and sell the facility or modify the first floor to be able to lease to retail stores.

A study of fox rabies in a country gave the following information about different regions and the occurrence of rabies in each region. A random sample of

n₁ = 16

locations in region I gave the following information about the number of cases of fox rabies near that location.

x₁:

   Region I Data

A second random sample of

n₂ = 15

locations in region II gave the following information about the number of cases of fox rabies near that location.

x₂:

   Region II Data

(i) Use a calculator with sample mean and sample standard deviation keys to calculate x₁ and s₁ in region I, and x₂ and s₂ in region II. (Round your answers to two decimal places.)

(ii) Does this information indicate that there is a difference (either way) in the mean number of cases of fox rabies between the two regions? Use a 5% level of significance. (Assume the distribution of rabies cases in both regions is mound-shaped and approximately normal.)
(a) What is the level of significance?

Store Closing?

For this discussion, consider the following scenario:

The privately owned Baker Company was founded in 1960. The company manufactures kitchen cabinets and has been very successful, expanding from one facility to twelve facilities in the same and other states. All facilities but the original are located near interstate highways. The original facility, which is no longer the headquarters, is in a downtown area of a major city (which grew up around it) with relatively high real-estate taxes. It has had a negative contribution margin and a net loss for the last five years. The founder is retired and three of his children want to close the facility. The fourth does not, because it "was Dad's first place and I went there every day after school." She believes they can bring the facility back to profitability if the city's downtown revitalization project succeeds and they dedicate the first floor of the facility to retail.

• Your definition for "negative contribution margin."
• Whether the fact that the facility is not near an interstate makes a difference in the decision.
• Would it make a difference if the company were publicly traded?
• Might there be additional costs, in addition to revenues, to convert the first floor of the facility to retail?
• What risks may be associated with leasing to retail stores?
• What is your recommendation? Close and sell the facility or modify the first floor to be able to lease to retail stores.

On plant Mercury there is a special lake with two layers: dH2O and dHg (liquid mercury). The liquid water layer floats on top of the liquid mercury layer. Let ρH2O and ρHg denote the densities of water and mercury respectively. The gravitational field near the planet’s surface is gy, and the the atmospheric pressure near the surface of the lake P0.

a.Determine an expression in terms of the gi variables for the pressure in the lake as a function of depth all the way to the bottom of the layer of mercury. Graph this function.

b. Suppose an object density ρ is dropped into the lake. Assume ρH2O < ρ < ρHg. What fraction of the object you think will be submerged in the mercury after the object comes to rest in static equilibrium in the limit ρ → ρH2O .What fraction of the object you think will be submerged in the mercury after the object comes to rest in static equilibrium in the limit ρ → ρHg?

c.Determine an expression for ρ in terms of ρH 2O and ρHg that you believe would result in the object being half-submerged in the mercury layer and half-submerged in the water layer?Assume ρH2O < ρ < ρHg

d. Consider the general case where the density of the object is simply the unknown variable p. Determine an expression for the fraction of the object that will be submerged in the mercury when the object comes to rest in static equilibrium?

Pro forma income statement. The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.64 million. Interest expense is expected to remain unchanged at $37,000​, and the firm plans to pay $69,000 in cash dividends during 2020. Metroline​ Manufacturing's income statement for the year ended December​ 31, 2019​, is given below​, along with a breakdown of the​ firm's cost of goods sold and operating expenses into their fixed and variable components.

Income Statement

Sales Revenue 1,405,000

Less: Cost of goods sold 914,000

Gross profits 491,000

Less: Operating expenses 110,000

Operating Profits 381,000

Less: Interest Expense 37,000

Net profits before taxes 344,000

Less: Taxes (rate= 40%) 137,600

Net profits after taxes 206,400

Less: cash dividends 68,000

To retained earnings 138,400

Breakdown of Cost and Expenses

Cost of goods sold

Fixed Cost 212,000

Variable Cost 702,000

Total Cost 914,000

Operating Expenses

Fixed expenses 37,000

variable expenses 73,000

Total expenses 110,000

A. Use the ​percent-of-sales method to prepare a pro forma income statement for the year ended December​ 31, 2020. Complete the pro forma income statement for the year ended December​ 31, 2020 ​below: (Round the percentage of sales to four decimal places and the pro forma income statement amounts to the nearest​ dollar.)

B. Use fixed and variable cost data to develop a pro forma income statement for the year ended December​ 31, 2020. Complete the pro forma income statement for the year ended December​ 31, 2020 ​below: (Round the percentage of sales to four decimal places and the pro forma income statement amounts to the nearest​ dollar.)

C. Complete the following statements:

The pro forma income statement developed using the fixed and variable cost data projects a (enter either 'higher' or 'lower')  net profit after taxes due to (enter either 'higher' or 'lower')  cost of goods sold and operating expenses. Although the​ percent-of-sales method projects a more (enter either 'conservative' or 'aggressive')  estimate of net profit after​ taxes, the pro forma income statement that classifies fixed and variable cost is (enter either 'less' or 'more')  accurate.

1) Which of the following statements are true regarding the event horizon of a black hole? (Select all that apply.)

1. The event horizon is the location that marks the "point of no return" for a black hole. Anything that crosses the event horizon can never escape.

2. The Schwarzschild radius specifies the location of the event horizon.

3. The event horizon is the location where the escape velocity is equal to the speed of light.

4. Inside the event horizon, the escape velocity is less than the speed of light.

5. The event horizon specifies the maximum mass that a star can have before collapsing into a black hole.

2) Which of the following statements are true regarding how black holes are formed? (Select all that apply.)

1. All stars eventually produce black holes at the end of their lives, because white dwarfs are unstable and will collapse into black holes.

2. Stars with masses that are eight times as large as our sun's or more will produce a black hole when they collapse and explode in a supernova.

3. Two white dwarfs or neutron stars can produce a black hole if they collide.

4. If a white dwarf accretes material from a companion star in a binary system, it will eventually collapse into a black hole.

3) Which of the following answers is the best response to the statement: "everything near a black hole will be sucked in."

1. True, the gravity of a black hole is so strong that it is impossible to escape no matter where you are.

2. False, the presence of accretion disks shows us that nothing that falls near a black hole is absorbed.

3. True, black holes are large, and it is unlikely that an object will not fall into a black hole once the black hole's gravity begins to pull on it.

4. False, black holes are relatively tiny compared to other objects with similar mass, so material that falls near a black hole will orbit it rather than fall directly in.

4) Calculate the Schwarzschild radius that Jupiter would have if it were to turn into a black hole.

Hint: Jupiter's mass is 1.9 x 10²⁷ kg.

Hint: the gravitational constant is 6.67 x 10^-11.

5) As a black hole gains mass via accretion, its radius will...

1. Remain the same

2. Increase

3. Decrease

Smart Company is preparing its financial statements for the year ended June 30, 2017. The financial statements are complete except for the statement of cash flows. You have been asked to prepare a statement of cash flows for the year ended June 30, 2017.

Download the excel spreadsheet found in the link below.

Required:

Prepare a spreadsheet to support a statement of cash flows for the year ended June 30, 2017.

In the tab named ‘Journal Entries’, show in journal entry form, the entries that would be made in preparation of the statement of cash flows.

Prepare Smart Company’s statement of cash flows for the year ended June 30, 2017. Prepare the statement of cash flows using the indirect method. Note: For full credit, you must prepare the statement of cash flow in good form with all necessary disclosures, including disclosures about noncash financing and investing activities.

Submit a well-formatted electronic file, with your last name as the file name. For example, Lastname_PortfolioProject.xls.

You are the accountant for Smart Construction Company, a large construction company in Colorado. You have been presented with the following financial information for Smart and asked to prepare the Statement of Cash Flows for the year ended June 30, 2017. You will complete all work for the project in this excel file, which includes the following tabs:

Facts - Information taken from Smart's accounting records and additional information regarding the cash flows as of June 30, 2017.

Worksheet - Worksheet template (also see Example 21.3a in text).

Cash Flows - Statement of Cash Flows template (also see Example 21.3b in text).

Additional information:

Dividends declared and paid totaled $650.

300 shares of common stock (at par) were issued for cash.

On July 1, 2016, convertible preferred stock that had originally been issued at par value were

converted into 500 shares of common stock. The book value method was used to account for the conversion.

The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the fiscal year.

Short-term marketable securities were purchased at a cost of $1,300. The portfolio was increased by $300 to a $14,800 fair value at year-end by adjusting the related allowance account.

During the year, a 30% interest in Ricochet Co. was purchased as an investment for $9,500. Ricochet reported $20,000 in net income for the year and paid dividends of $2,000 to Smart.

$5,000 of accounts receivable were written off as uncollectible during the year.

Smart’s inventory consists of Construction-in-Process in excess of the Billings on Construction-in-Process account balance.

A building was destroyed by fire during the year and insurance proceeds of $26,000 were collected.

The 12% bonds payable were issued on February 28, 2017, at 97. They mature on February 28, 2027. The company uses the straight-line method to amortize bond premiums and discounts.

Smart recorded pension expense of $350,000 for the year.

A lease agreement was signed on July 1st, 2016 for the use of equipment worth $20,000. The company determined that the transaction should be recorded as a capital lease.

Problem 11-10

Martinez Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Martinez has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company’s records and personnel.

Complete the schedule below. (Round answers to 0 decimal places, e.g. 45,892.)

Skysong Corporation, a manufacturer of steel products, began operations on October 1, 2016. The accounting department of Skysong has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company’s records and personnel.