|
The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 24 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 27,700 | ||||||||
| Sales revenue | $ | 14,800 | $ | 16,400 | $ | 17,800 | $ | 14,300 | ||
| Operating costs | 3,600 | 3,450 | 5,600 | 4,200 | ||||||
| Depreciation | 6,925 | 6,925 | 6,925 | 6,925 | ||||||
| Net working capital spending | 370 | 270 | 365 | 220 | ? | |||||
| a. |
Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) |
| b. |
Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.) |
| c. |
Suppose the appropriate discount rate is 10 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
In: Finance
|
The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 22 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 26,500 | ||||||||
| Sales revenue | $ | 13,600 | $ | 15,200 | $ | 16,600 | $ | 13,100 | ||
| Operating costs | 3,000 | 3,150 | 4,400 | 3,000 | ||||||
| Depreciation | 6,625 | 6,625 | 6,625 | 6,625 | ||||||
| Net working capital spending | 310 | 210 | 245 | 160 | ? | |||||
| a. |
Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) |
| b. |
Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.) |
| c. |
Suppose the appropriate discount rate is 10 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
In: Finance
Earnings per Share and Multiple-Step Income
Statement
The following summarized data are related to Garner Corporation's
operations:
| Sales revenue | $2,442,000 | |
| Cost of goods sold | 1,419,000 | |
| Selling expenses | 198,000 | |
| Administrative expenses | 157,300 | |
| Loss from plant strike | 106,700 | |
| Income tax expense | 224,400 | |
| Shares of common stock | ||
| Outstanding at January 1 | 61,000 | shares |
| Additional issued at April 1 | 17,000 | shares |
| Additional issued at August 1 | 3,000 | shares |
Required
Prepare a multiple-step income statement for Garner Corporation.
Include earnings per share disclosure at the bottom of the income
statement. Garner Corporation has no preferred stock.
| GARNER CORPORATION Income Statement For the Year Ended December 31 |
||
|---|---|---|
| Sales Revenue | $Answer | |
| Cost of Goods Sold | Answer | |
| Gross Profit on Sales | Answer | |
| Selling Expenses | $Answer | |
| Administrative Expenses | Answer | Answer |
| Operating Income | Answer | |
| Loss from Plant Strike | Answer | |
| Income before Taxes | Answer | |
| Income Tax Expense | Answer | |
| Net Income | $Answer | |
| Earnings per share of Common Stock | $Answer | |
In: Accounting
he following selecred rransaccions occurred during 2016 and 2017 for Mediterranean Importers. The company ends irs accouncin. g year on April 30. 2016 Learning Objective 4 Receivables 5I7 Recorded credit card sales of $96,000, net of processor fee of 1 %. Ignore Cost of Goods Sold. Loaned $23,000 to Jess Prich.et!, an executive with the company; on a one- year, 12% note. Accrued interest revenue on the Prichett note. Collected the maturity value of the Prichett note. Learning Objective 4 Feb. 1, 2017 Cash DR $21,200 Feb. Apr. 6 Apr. 30 ? 2017 Feb. 1 loaned $20,000 cash to Candace Smith on a one-year. 6% note. Sold goods to Green Masters. receiving a 90-day, 9% note for $10,000. Ignore Cost of Goods Sold. Made a single entry to accrue interest revenue on both notes. Collected the maturity value of the Green Masters note. Collected the maturity value of the Smith note. Journalize all required entries. Make sure co determine che missing maturity dare.
In: Accounting
On February 1, 2018, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,075,000. During 2018, costs of $2,030,000 were incurred, with
estimated costs of $4,030,000 yet to be incurred. Billings of
$2,536,000 were sent, and cash collected was $2,280,000.
In 2019, costs incurred were $2,536,000 with remaining costs
estimated to be $3,645,000. 2019 billings were $2,786,000, and
$2,505,000 cash was collected. The project was completed in 2020
after additional costs of $3,830,000 were incurred. The company’s
fiscal year-end is December 31. This project does not qualify for
revenue recognition over time.
Required:
1. Calculate the amount of revenue and gross
profit or loss to be recognized in each of the three years.
2a. Prepare journal entries for 2018 to record the
transactions described (credit "various accounts" for construction
costs incurred).
2b. Prepare journal entries for 2019 to record the
transactions described (credit "various accounts" for construction
costs incurred).
3a. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2018.
3b. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2019.
In: Accounting
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $10,000 of common stock for cash. Recognized $210,000 of service revenue earned on account. Collected $162,000 from accounts receivable. Paid operating expenses of $125,000. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 1 percent of sales on account. The following transactions apply to Jova for Year 2: Recognized $320,000 of service revenue on account. Collected $335,000 from accounts receivable. Determined that $2,150 of the accounts receivable were uncollectible and wrote them off. Collected $800 of an account that had previously been written off. Paid $205,000 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 0.5 percent of sales on account. Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2. c. Organize the transaction data in accounts under an accounting equation for each year.
In: Accounting
| K-Too Everwear Corporation can manufacture mountain climbing shoes for $33.18 per pair in variable raw material costs and $24.36 per pair in variable labor expense. The shoes sell for $170 per pair. Last year, production was 145,000 pairs. Fixed costs were $1,750,000. |
| a. | What were total production costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) | |
| b. | What is the marginal cost per pair? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) | |
| c. | What is the average cost per pair? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) | |
| d. |
If the company is considering a one-time order for an extra 5,000 pairs, what is the minimum acceptable total revenue from the order? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
|
| a. | Total production cost | |
| b. | Marginal cost per pair | |
| c. | Average cost per pair | |
| d. | Total revenue |
In: Finance
Consider a market consisting of several small pulp & paper mills operating in the South-east. These firms discharge chlorine and other waste products into nearby rivers and streams. The rivers and streams are not privately owned, and the mills’ discharges are currently unregulated by the EPA or by the states’ environmental agencies. The demand for paper produced by the mills in this market is P = 800 - 0.5Q. The marginal cost of producing paper in this market is MC = 20 + 0.3Q, where P and MC are expressed in dollars, and Q is expressed in tons of pulp and paper.
a. Determine this market’s equilibrium price and quantity, total revenue, marginal cost, consumer and producer surplus.
b. University researchers estimate that chlorine emissions from the industry's production impose costs, unaccounted for the industry or the market in which it operates, equal to P = 0.05Q. Determine the market’s efficient equilibrium price and quantity when all costs are accounted for.
c. The researchers then suggest that a tax, equal to the unaccounted for costs, be imposed on the production of pulp & paper in this market. What is the dollar amount of the tax? How much in revenue would the government collect? Would the market be inefficient with the tax? Explain (briefly and concisely) your answer.
In: Economics
Question 2. The following tables provide some example data that will be kept in the database. Write the INSERT commands necessary to place the following data in the tables that were created in Question 1. Alternatively provide the text files (copy and pasted into your final report) and the open/insert from file commands..
Table: actor
act_id | act_fname | act_lname | act_gender
101 | James | Stewart | M
102 | Deborah | Kerr | F
103 | Peter | OToole | M
104 | Robert | De Niro | M
105 | F. Murray | Abraham | M
106 | Harrison | Ford | M
107 | Nicole | Kidman | F
108 | Stephen | Baldwin | M
109 | Jack | Nicholson | M
110 | Mark | Wahlberg | M
111 | Woody | Allen | M
112 | Claire | Danes | F
113 | Tim | Robbins | M
114 | Kevin | Spacey | M
115 | Kate | Winslet | F
116 | Robin | Williams | M
117 | Jon | Voight | M
118 | Ewan | McGregor | M
119 | Christian | Bale | M
120 | Maggie | Gyllenhaal | F
121 | Dev | Patel | M
122 | Sigourney | Weaver | F
123 | David | Aston | M
124 | Ali | Astin | F
Table: movie_cast
act_id | mov_id | role
101 | 901 | John Scottie Ferguson
102 | 902 | Miss Giddens
103 | 903 | T.E. Lawrence
104 | 904 | Michael
105 | 905 | Antonio Salieri
106 | 906 | Rick Deckard
107 | 907 | Alice Harford
108 | 908 | McManus
110 | 910 | Eddie Adams
111 | 911 | Alvy Singer
112 | 912 | San
113 | 913 | Andy Dufresne
114 | 914 | Lester Burnham
115 | 915 | Rose DeWitt Bukater
116 | 916 | Sean Maguire
117 | 917 | Ed
118 | 918 | Renton
120 | 920 | Elizabeth Darko
121 | 921 | Older Jamal
122 | 922 | Ripley
114 | 923 | Bobby Darin
109 | 909 | J.J. Gittes
119 | 919 | Alfred Borden
Table: movie
mov_id | mov_title | mov_year | mov_time | mov_lang | mov_dt_rel | mov_rel_country
901 | Vertigo | 1958 | 128 | English | 1958-08-24 | UK
902 | The Innocents | 1961 | 100 | English | 1962-02-19 | SW
903 | Lawrence of Arabia | 1962 | 216 | English | 1962-12-11 | UK
904 | The Deer Hunter | 1978 | 183 | English | 1979-03-08 | UK
905 | Amadeus | 1984 | 160 | English | 1985-01-07 | UK
906 | Blade Runner | 1982 | 117 | English | 1982-09-09 | UK
907 | Eyes Wide Shut | 1999 | 159 | English | | UK
908 | The Usual Suspects | 1995 | 106 | English | 1995-08-25 | UK
909 | Chinatown | 1974 | 130 | English | 1974-08-09 | UK
910 | Boogie Nights | 1997 | 155 | English | 1998-02-16 | UK
911 | Annie Hall | 1977 | 93 | English | 1977-04-20 | USA
912 | Princess Mononoke | 1997 | 134 | Japanese | 2001-10-19 | UK
913 | The Shawshank Redemption | 1994 | 142 | English | 1995-02-17 | UK
914 | American Beauty | 1999 | 122 | English | | UK
915 | Titanic | 1997 | 194 | English | 1998-01-23 | UK
916 | Good Will Hunting | 1997 | 126 | English | 1998-06-03 | UK
917 | Deliverance | 1972 | 109 | English | 1982-10-05 | UK
918 | Trainspotting | 1996 | 94 | English | 1996-02-23 | UK
919 | The Prestige | 2006 | 130 | English | 2006-11-10 | UK
920 | Donnie Darko | 2001 | 113 | English | | UK
921 | Slumdog Millionaire | 2008 | 120 | English | 2009-01-09 | UK
922 | Aliens | 1986 | 137 | English | 1986-08-29 | UK
923 | Beyond the Sea | 2004 | 118 | English | 2004-11-26 | UK
924 | Avatar | 2009 | 162 | English | 2009-12-17 | UK
926 | Seven Samurai | 1954 | 207 | Japanese | 1954-04-26 | JP
927 | Spirited Away | 2001 | 125 | Japanese | 2003-09-12 | UK
928 | Back to the Future | 1985 | 116 | English | 1985-12-04 | UK
925 | Braveheart | 1995 | 178 | English | 1995-09-08 | UK
Table: director
dir_id | dir_fname | dir_lname
201 | Fred | Caravanhitch
202 | Jackie | Claytonburry
203 | Greene | Lyon
204 | Miguel | Camino
205 | George | Forman
206 | Antartic | Scott
207 | Stanlee | Carbrick
208 | Bryon | Sanger
209 | Roman | Polanski
210 | Paul | Thomas Anderson
211 | Woody | Allen
212 | Hayao | Miyazaki
213 | Frank | Darabont
214 | Sam | Mendes
215 | James | Cameron
216 | Gus | Van Sant
217 | John | Boorman
218 | Danny | Boyle
219 | Christopher | Nolan
220 | Richard | Kelly
221 | Kevin | Spacey
222 | Andrei | Tarkovsky
223 | Peter | Jackson
Table: movie_direction
dir_id | mov_id
201 | 901
202 | 902
203 | 903
204 | 904
205 | 905
206 | 906
207 | 907
208 | 908
209 | 909
210 | 910
211 | 911
212 | 912
213 | 913
214 | 914
215 | 915
216 | 916
217 | 917
218 | 918
219 | 919
220 | 920
218 | 921
215 | 922
221 | 923
Table: genres
gen_id | gen_title
1001 | Action
1002 | Adventure
1003 | Animation
1004 | Biography
1005 | Comedy
1006 | Crime
1007 | Drama
1008 | Horror
1009 | Music
1010 | Mystery
1011 | Romance
1012 | Thriller
1013 | War
Table: movie_genres
mov_id | gen_id
922 | 1001
917 | 1002
903 | 1002
912 | 1003
911 | 1005
908 | 1006
913 | 1006
926 | 1007
928 | 1007
918 | 1007
921 | 1007
902 | 1008
923 | 1009
907 | 1010
927 | 1010
901 | 1010
914 | 1011
906 | 1012
904 | 1013
Table: rating
mov_id | rev_id | rev_stars | num_o_ratings
901 | 9001 | 8.40 | 263575
902 | 9002 | 7.90 | 20207
903 | 9003 | 8.30 | 202778
906 | 9005 | 8.20 | 484746
924 | 9006 | 7.30 |
908 | 9007 | 8.60 | 779489
909 | 9008 | | 227235
910 | 9009 | 3.00 | 195961
911 | 9010 | 8.10 | 203875
912 | 9011 | 8.40 |
914 | 9013 | 7.00 | 862618
915 | 9001 | 7.70 | 830095
916 | 9014 | 4.00 | 642132
925 | 9015 | 7.70 | 81328
918 | 9016 | | 580301
920 | 9017 | 8.10 | 609451
921 | 9018 | 8.00 | 667758
922 | 9019 | 8.40 | 511613
923 | 9020 | 6.70 | 13091
Table: reviewer
rev_id | rev_name
9001 | Righty Sock
9002 | Jack Malvern
9003 | Flagrant Baronessa
9004 | Alec Shaw
9005 |
9006 | Victor Woeltjen
9007 | Simon Wright
9008 | Neal Wruck
9009 | Paul Monks
9010 | Mike Salvati
9011 |
9012 | Wesley S. Walker
9013 | Sasha Goldshtein
9014 | Josh Cates
9015 | Krug Stillo
9016 | Scott LeBrun
9017 | Hannah Steele
9018 | Vincent Cadena
9019 | Brandt Sponseller
9020 | Richard Adams
In: Computer Science
|
Period Ending: |
12/31/2017 |
Period Ending: |
12/31/2017 |
12/31/2014 |
|||
|
Cash and Cash Equivalents |
$396,900 |
Total Revenue |
$15,380,800 |
$2,356,600 |
|||
|
Short-Term Investments |
$0 |
Cost of Revenue |
$13,101,100 |
$1,975,000 |
|||
|
Net Receivables |
$2,725,300 |
Gross Profit |
$2,279,700 |
$381,600 |
|||
|
Inventory |
$0 |
Operating Expenses |
|||||
|
Other Current Assets |
$465,700 |
Research and Development |
$0 |
$0 |
|||
|
Total Current Assets |
$3,587,900 |
Sales, General and Admin. |
$1,656,500 |
$422,500 |
|||
|
Long-Term Investments |
$0 |
Non-Recurring Items |
$0 |
$0 |
|||
|
Fixed Assets |
$2,663,700 |
Other Operating Items |
$0 |
$0 |
|||
|
Goodwill |
$4,563,600 |
Operating Income |
$623,200 |
($40,900) |
|||
|
Intangible Assets |
$1,435,300 |
Add'l income/expense items |
($78,200) |
($800) |
|||
|
Other Assets |
$351,100 |
Earnings Before Interest and Tax |
$545,000 |
($41,700) |
|||
|
Deferred Asset Charges |
$0 |
Interest Expense |
$284,300 |
$48,000 |
|||
|
Total Assets |
$12,601,600 |
Earnings Before Tax |
$260,700 |
($89,700) |
|||
|
Accounts Payable |
$2,776,500 |
Income Tax |
($99,500) |
($26,100) |
|||
|
Short-Term Debt / Current Portion of Long-Term Debt |
$103,700 |
Minority Interest |
($20,000) |
$0 |
|||
|
Other Current Liabilities |
$116,900 |
Equity Earnings/Loss Unconsolidated Subsidiary |
$0 |
$0 |
|||
|
Total Current Liabilities |
$2,997,100 |
Net Income-Cont. Operations |
$340,200 |
($63,600) |
|||
|
Long-Term Debt |
$4,417,500 |
Net Income |
$340,200 |
($63,600) |
|||
|
Other Liabilities |
$596,100 |
Net Income Applicable to Common Shareholders |
$312,400 |
($107,400) |
|||
|
Deferred Liability Charges |
$580,900 |
||||||
|
Misc. Stocks |
$0 |
||||||
|
Minority Interest |
$405,600 |
||||||
|
Total Liabilities |
$8,591,600 |
||||||
|
Common Stocks |
$100 |
||||||
|
Capital Surplus |
$3,590,000 |
||||||
|
Retained Earnings |
($42,600) |
||||||
|
Treasury Stock |
$0 |
||||||
|
Other Equity |
$15,700 |
||||||
|
Total Equity |
$3,604,400 |
||||||
|
Total Liabilities & Equity |
$12,196,000 |
||||||
RATIOS FOR PERIOD ENDING DEC 31 2017
CURRENT:
QUICK:
FIXED ASSETS TO LONG TERM LIABILITIES:
NUMBER OF TIMES INTREST CHARGES ARE EARNED:
RATE EARNED ON TOTAL ASSETS:
EARNING PER SHARE ON COMMON STOCK:
P/E RATIO:
In: Accounting