You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value.

The required rate of return is 10%.

(7). (4 points) Define and find the crossover rate.

(8). (7 points) Sketch the NPV profile. Plot all the relevant coordinates (i.e., the points on the x and y axis; and the cross-over rate) on the graph.

On July 1, 2018, Gupta Corporation bought 20% of the outstanding common stock of VB Company for $110 million cash. At the date of acquisition of the stock, VB’s net assets had a total fair value of $500 million and a book value of $290 million. Of the $210 million difference, $46 million was attributable to the appreciated value of inventory that was sold during the last half of 2018, $130 million was attributable to buildings that had a remaining depreciable life of 10 years, and $34 million related to equipment that had a remaining depreciable life of 5 years. Between July 1, 2018, and December 31, 2018, VB earned net income of $60 million and declared and paid cash dividends of $40 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2018, assuming Gupta accounts for this investment by the equity method. 2. Determine the amounts to be reported by Gupta.

1. Postfix Evaluation (JAVA PROGRAMMING)

Write class PostfixEva1uator that evaluates a postfix expression such as 6 2 + 5 * 8 4 / -

The program should read a postfix expression consisting of single digits and operators into a StringBuilder, The program should read the expression and evaluate it (assume it's valid). The algorithm to evaluate a postfix expression is shown below. Use +, -, *, /, and ^. ^ is the exponent.

Append a right parenthesis ') ' to the end of the postfix expression. When the right-parenthesis character is encountered, no further processing is necessary.

Until the right parenthesis is encountered, read the expression from left to right.

if the current character is a digit, do the following:

Push its integer value onto the stack

else, if the current character is an operator:

Pop the two top elements of the stack into variables x and y.

Calculate y operator x.

Push the result of the calculation onto the stack.

End until when the right parenthesis is encountered in the expression,

Pop the top value of the stack. This is the result of the postfix expression .

[Note: (based on the sample expression at the beginning of this exercise), if the operator is '/', the top of the stack is 4 and the next element in the stack is 40, then pop 4 into x, pop 40 into y, evaluate 40 / 4 and push the result, 10, back on the stack. This note also applies to other operators.] The arithmetic operations allowed in an expression are: + (addition), - (subtraction), '' (multiplication),/ (division), A (exponentiation) and x (remainder).

You willy want to use the following methods:

a) Method evaluatePostfixExpression, which evaluates the postfix expression. It is called from main. (20)

b) Method calculate, which evaluates the expression opl operator op2. Called from evaluatePostfixExpression. (20)

c) Method printStack which prints out the stack after each push or pop. Called from evaluatePostfixExpression (multiple times) (20)

This example can all be done in a single class.

The main program simply request the postfix expression. Remember to leave a space between each digit and/or operator. (10)

Sample input/output

Please enter a postfix expression:

6 2 + 5 * 8 4 / -

The original postfix expression is:

6 2 + 5 * 8 4 / -

6

6

2

6

8

8

5

8

40

40

8

40

8

4

40

8

40

40

2

40

38

The value of the expression is: 38

Another Example:

Please enter a postfix expression:

4 5 + 3 / 4 ^ 2 -

The original postfix expression is:

4 5 + 3 / 4 ^ 2 -

4

4

5

4

9

9

3

9

3

3

4

3

81

81

2

81

79

The value of the expression

A construction project has indirect costs totaling $40,000 per week. Major activities of the project, their expected time, and crashing costs per week are:

What would be your recommended lowest cost duration for this project? Show your work. For each step specify what activity is crashed and show why.

The Cherry & White Bike Company is a small closely-held company with two owners. Its two owners, Charlotte and George, have decided to expand the business. You are CWB’s accountant. Your responsibilities include maintaining all accounting records and preparing annual financial statements.

CWB wants to take out a loan to expand its business in the coming year. The banks and lending institutions require a set of financial statements prepared under U.S. GAAP to evaluate CWB’s credit worthiness.

You must prepare a complete set of financial statements including the notes to the financial statements for the quarter ending March 31, 2018. You need to choose CWB’s accounting policies and methods for areas including inventory cost flow, revenue recognition, and depreciation. You will need to consider the proper classification of assets and liabilities as current and non-current on the balance sheet.

To obtain a loan with the lowest interest rate available, CWB needs to show high profitability, and strong liquidity and solvency. You realize the common financial statement analysis ratios for profitability, solvency and liquidity will depend on the accounting methods you choose. So, you carefully analyze the accounting choices in light of common financial statement ratios.

The owners also have expressed to you that they need to know their inventory and cost of goods sold to manage purchases and pricing. So, you are highly considering using a perpetual inventory system.

You are presented with a trial balance as of the end of 2017 and must add the transactions and activities that occurred in the first quarter of 2018 as listed below. You can add accounts to the trial balance, as needed. In the first quarter of 2018 Cherry & White Bikes had the following transactions

January 1:     The owners hire Nina Marton to manage the store, paying her a salary of $2,800 a month. Lisa is paid on the 1st of every month, starting on February 1 (which would represent her January pay). They have one other employee who they pay $1,900 a month, also on the 1^st of the following month. Employees work 40 hours a week.

January 14:    Paid utilities for 4^th quarter of 2017, $775.

February 1:    Installed new light fixtures and display cases in the leased store. CWB paid $1,600 for the fixtures, $120 for shipping to the store, and $500 to an electrician to install. CWB paid 6% sales tax on the fixtures and shipping in addition to the cost of the fixtures and equipment. It did not pay a sales tax to the electrician. CWB anticipates being in the store for at least 5 years. CWB cannot take the light fixtures with them if they relocate as they will revert to the lessor.

CWB can take the display cases if they move. The display cases cost $3,400. CWB also incurred 6% sales tax on the display cases on addition to their cost.

Both the display cases and light-fixtures have a seven-year useful life.

March 1:        CWB invests in a $4,000 3-month treasury bill paying interest of 3.0%.

March 24:      A customer puts down a deposit of $700 on a high-end racing bike that sells for $2,900. CWB ordered the bike from the manufacturer. The manufacturer promises CWB will have the bike at the store on April 3.

Here is other information on other activity and recurring transactions that occurred during the period.

CWB offers bike tune-ups for $80 each. CWB’s employee is an expert tune-ups, taking about one hour per bike for a tune-up. Below is the number of tune-ups performed in each month. All customers pay in cash. (For recording the transactions, you can assume all tune-ups are done the last day of the month).

CWB has the following purchases and sales of bikes during the quarter+:

+All purchasers of standard bikes are given the option of buying a bike for $400, or a bike with two years of tune-ups for $500. Four of the bikes sold on February 21^st were sold with the tune-up option.

**All purchases were made using cash except the March 2nd purchase for which CWB obtained two-months credit from the bike supplier.

CWB took out a five-year loan for $15,000 with an interest rate of 12% on January 1, 2017. The loan matures on January 1, 2022.

CWB rents its premises for $1,000 per month, with rent due on the 15^st of the prior month.

CWB has a business insurance policy, which it purchased for $3,300 on July 1, 2017. The policy runs until June 30, 2018.

CWB owns various tools and equipment which it pools for purpose of calculating depreciation. In the past it has used straight-line depreciation over a twelve-year period with no scrap or salvage value for these assets. However, with technology changing rapidly, CWB questions whether it will have to replace the equipment earlier.

On April 7 received its utilities bill for the first quarter of 2018 - $800.

The tax rate is 20%.

Cherry & White Bike Company

Post-Closing Trial Balance

12/31/2017

NEED Journal Entries, Income Statement, Statement of retained earnings, and Balance Sheet

Cherry & White Bike Company

The Cherry & White Bike Company is a small closely-held company with two owners. Its two owners, Charlotte and George, have decided to expand the business. You are CWB’s accountant. Your responsibilities include maintaining all accounting records and preparing annual financial statements.

CWB wants to take out a loan to expand its business in the coming year. The banks and lending institutions require a set of financial statements prepared under U.S. GAAP to evaluate CWB’s credit worthiness.

You must prepare a complete set of financial statements including the notes to the financial statements for the quarter ending March 31, 2018. You need to choose CWB’s accounting policies and methods for areas including inventory cost flow, revenue recognition, and depreciation. You will need to consider the proper classification of assets and liabilities as current and non-current on the balance sheet.

To obtain a loan with the lowest interest rate available, CWB needs to show high profitability, and strong liquidity and solvency. You realize the common financial statement analysis ratios for profitability, solvency and liquidity will depend on the accounting methods you choose. So, you carefully analyze the accounting choices in light of common financial statement ratios.

The owners also have expressed to you that they need to know their inventory and cost of goods sold to manage purchases and pricing. So, you are highly considering using a perpetual inventory system.

You are presented with a trial balance as of the end of 2017 and must add the transactions and activities that occurred in the first quarter of 2018 as listed below. You can add accounts to the trial balance, as needed. In the first quarter of 2018 Cherry & White Bikes had the following transactions

January 1:       The owners hire Nina Marton to manage the store, paying her a salary of $2,800 a month. Lisa is paid on the 1st of every month, starting on February 1 (which would represent her January pay). They have one other employee who they pay $1,900 a month, also on the 1^st of the following month. Employees work 40 hours a week.

January 14:     Paid utilities for 4^th quarter of 2017, $775.

February 1:     Installed new light fixtures and display cases in the leased store. CWB paid $1,600 for the fixtures, $120 for shipping to the store, and $500 to an electrician to install. CWB paid 6% sales tax on the fixtures and shipping in addition to the cost of the fixtures and equipment. It did not pay a sales tax to the electrician. CWB anticipates being in the store for at least 5 years. CWB cannot take the light fixtures with them if they relocate as they will revert to the lessor.

CWB can take the display cases if they move. The display cases cost $3,400. CWB also incurred 6% sales tax on the display cases on addition to their cost.

Both the display cases and light-fixtures have a seven-year useful life.

March 1:          CWB invests in a $4,000 3-month treasury bill paying interest of 3.0%.

March 24:        A customer puts down a deposit of $700 on a high-end racing bike that sells for $2,900. CWB ordered the bike from the manufacturer. The manufacturer promises CWB will have the bike at the store on April 3.

Here is other information on other activity and recurring transactions that occurred during the period.

CWB offers bike tune-ups for $80 each. CWB’s employee is an expert tune-ups, taking about one hour per bike for a tune-up. Below is the number of tune-ups performed in each month. All customers pay in cash. (For recording the transactions, you can assume all tune-ups are done the last day of the month).

CWB has the following purchases and sales of bikes during the quarter+:

+All purchasers of standard bikes are given the option of buying a bike for $400, or a bike with two years of tune-ups for $500. Four of the bikes sold on February 21^st were sold with the tune-up option.

**All purchases were made using cash except the March 2nd purchase for which CWB obtained two-months credit from the bike supplier.

CWB took out a five-year loan for $15,000 with an interest rate of 12% on January 1, 2017. The loan matures on January 1, 2022.

CWB rents its premises for $1,000 per month, with rent due on the 15^st of the prior month.

CWB has a business insurance policy, which it purchased for $3,300 on July 1, 2017. The policy runs until June 30, 2018.

CWB owns various tools and equipment which it pools for purpose of calculating depreciation. In the past it has used straight-line depreciation over a twelve-year period with no scrap or salvage value for these assets. However, with technology changing rapidly, CWB questions whether it will have to replace the equipment earlier.

On April 7 received its utilities bill for the first quarter of 2018 - $800.

The tax rate is 20%.

Cherry & White Bike Company

Post-Closing Trial Balance

12/31/2017

HOW WOULD YOU RECORD THESE ENTRYS????

Compute a one-way ANOVA on the following data.

113 120 132 122 121 127 130 118 117 125 129 125 110 125 130 121

Determine the F test. Compare it with the critical F value and decide whether to reject the null hypothesis. Use a 1% level of significance.