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Chinese Drone Maker Plows Into Agriculture; DJI to launch crop-spraying drone in effort to expand into farming sector

China's SZ DJI Technology Co., the world's top consumer-drone maker, is setting its sights on the agriculture industry with the launch of a crop sprayer that will test whether farming is fertile ground for drone technology.

DJI, which helped kick-start the global craze for drones with its $1,000 easy-to-fly devices, has unveiled an eight-rotor drone priced at roughly $15,000 that is designed to spray pesticides on crops, a spokesman said. DJI said the drone, which has a 2.6-gallon spray tank and a typical takeoff weight of about 49 pounds, can fly for about 12 minutes.

It can spray pesticides on seven to 10 acres of farmland an hour, depending on how much it needs to climb, descend or turn to follow the terrain.

The battery-powered DJI Agras MG-1 will be available first in China and South Korea, though the company didn't specify exactly when it would go on sale. In China, DJI was taking preorders Friday. The drone is expected to be available in other markets later, the company said.

Shenzhen-based DJI has found success selling drones to consumers and filmmakers since 2013, with revenue expected to exceed $1 billion this year.

The company, which is valued at roughly $8 billion based on its latest funding round, is now betting it can parlay that success into farming. Its push into the sector could open the way for other drone makers--or prove that agriculture isn't the cornucopia for unmanned aircraft that some had hoped.

The Association of Unmanned Vehicle Systems International, the largest drone trade group, has touted farming as the biggest potential market for drones, by far. In a 2013 report, the Arlington, Va.-based group forecast that agriculture would account for 92% of an estimated $82 billion economic impact from commercial drones in the U.S. between 2015 and 2025.

But even as the commercial use of drones has taken off world-wide, agriculture is far from capturing such a large share of the market. Fewer companies are applying for U.S. Federal Aviation Administration approvals to use drones on farms than for activities such as filmmaking, mapping and industrial inspection, according to recent studies.

The FAA began regularly approving drones for commercial use in September 2014. Just 90 of the FAA's first 1,355 approvals were for agriculture, according to Piper Jaffray Investment Research--well behind the 670 approvals for aerial filming. The FAA has approved most applications it receives.

Much of the promise for agricultural drones has been in their ability to collect large-scale aerial data on crops. The information helps farmers more precisely tend to their fields, adding or reducing irrigation or pesticides where necessary. So far, agricultural drones have failed to live up to their promise because giving farmers actionable data on their crops is far more complex than making a map or filming a movie, analysts said.

Commercial-drone maker Kespry Inc., based in Menlo Park, Calif., said it originally considered targeting agriculture as its top initial market, but ultimately decided on construction.

"To serve that market we need real expertise--agronomists who can combine the data with information on weather and local pests, and provide real recommendations," said Kespry founder and Chief Executive Paul Doersch. "For us to scale it didn't make sense."

Despite the complexities, DJI isn't the only drone maker betting on farming to diversify its revenue stream. Henri Seydoux, CEO of Paris-based Parrot SA, which has quickly captured the lower end of the consumer-drone market , said his company will collect data on 200,000 acres for farmers in France this year. Still, commercial drones earned Parrot just [euro]5.6 million ($6 million) in the third quarter, compared with [euro]44.4 million on consumer drones.

Agricultural drones "are at an early phase," Mr. Seydoux said. "It's true for all the commercial spaces. There is a lot of expectation but still not a big result."

DJI is making a different bet on agriculture: spraying crops instead of inspecting them. In China, chemicals are often administered on foot by backpack-wielding workers. Drones would improve pesticide application on hilly or wet land that is difficult to access and would limit farmworkers' exposure to chemicals, said Even Pay, a Beijing-based agriculture consultant who has studied Chinese farming methods. Japanese farmers have used large gasoline-powered unmanned helicopters made by Yamaha Motor Co. since the early 1990s to spray their fields. Yamaha began selling the drones to South Korean farmers in 2005. The FAA in May approved the drone for limited use in the U.S., and the company is considering whether to introduce it in the country. Analysts said DJI's crop-spraying drone will likely struggle to win over Western farmers who generally tend to larger areas. Large U.S. farms have for decades used small planes that can carry hundreds of gallons of pesticide to spray their fields. The planes are efficient at covering large areas and relatively inexpensive to hire.

Robert Blair, an Idaho farmer and vice president of agriculture for commercial-drone company Measure LLC, said he is bullish on drones that collect data on crops but skeptical about crop-spraying drones like DJI's that can carry only a few gallons of pesticide. "It's a niche market," he said


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In: Economics

What regional economic arrangement does lebanon belong to? Give us a summary of that article, and...

What regional economic arrangement does lebanon belong to?

Give us a summary of that article, and a link to it.

(b) How does that issue impact business in the country you studied?

(c) How does that issue impact the ease or difficulty for a foreign company to do business in that country?

In: Economics

Which of the following is the most liquid? Select an answer and submit. For keyboard navigation,...

Which of the following is the most liquid? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a The stock of a Fortune 500 company

b A bond issued by the US government

c A bank checking account

d A bank savings account

In: Finance

suppose that in a random selection of colored candies, 21% od them are blue. The candy...

suppose that in a random selection of colored candies, 21% od them are blue. The candy company claims that thr percentage of blue candies us equal to26%. use a 0.10 signicance level to test the claim. include Any TI 84 commands

the sample size is 100

In: Statistics and Probability

Listed below are student evaluation ratings of​ courses, where a rating of 5 is for​ "excellent."...

Listed below are student evaluation ratings of​ courses, where a rating of 5 is for​ "excellent." The ratings were obtained at one university in a state. Construct a confidence interval using a

99% confidence level. What does the confidence interval tell about the population of all college students in the​ state?

4.0, 3.2, 4.2, 4.9, 3.0, 4.4, 3.8, 4.9, 4.5, 4.1, 4.1, 4.0, 3.4, 4.2, 3.9

What is the confidence interval for the population mean μ​?

___< μ​<___. (Round to two decimal places as needed.)

What does the confidence interval tell about the population of all college students in the​ state? Select the correct choice below​ and, if​ necessary, fill in the answer​box(es) to complete your choice.

A.We are 99​% confident that the interval from ____ to ____ actually contains the true mean evaluation rating.

​(Round to one decimal place as​ needed.)

B. The results tell nothing about the population of all college students in the​ state, since the sample is from only one university.

C.We are confident that 99​% of all students gave evaluation ratings between ___ and ___.

In: Statistics and Probability

1) A friend of yours suggests that at least 10% of people at your university have...

1) A friend of yours suggests that at least 10% of people at your university have had something stolen from them on campus in the past year. This is your population value. You take a random sample of 100 people in you classes to determine if your friend is correct, you think that they may be wrong. You find that 15% of them have had something stolen.

Would you have a one or two tailed test?

Two Tailed

One tailed

2) What is the strength of the following correlation? -0.512

Moderate

Strong

Weak

3) A friend of yours suggests that at least 10% of people at your university have had something stolen from them on campus in the past year. This is your population value. You take a random sample of 100 people in you classes to determine if your friend is correct, you think that they may be wrong. You find that 15% of them have had something stolen.

Would you use z or t to test this hypothesis?

Z Distribution

T Distribution

In: Math

Question 1 (10 marks) As part of the fight to slow the progression of the COVID-19...

Question 1

As part of the fight to slow the progression of the COVID-19 pandemic, many jurisdictions have introduced policies to promote and enforce physical distancing, isolation/quarantine, limit social gatherings, and limit in-person business to essential services only, and other practices such as encouraging the use of face masks while in public. Similarly, universities and many businesses have migrated the bulk of their operations to online and remote operations and services. We’ve all experienced that at York University, work and non-work aspects of our lives. For your answer to Question 1, use your recent personal experiences to explore how these changes have impacted communication effectiveness. You may use examples from your recent York University experiences, recent work-related examples, or other recent personal examples that help you illustrate any changes that have happened. Consider a wide range of content from our course materials on communication. Ensure to articulate your arguments clearly and provide support for your claims, using and applying relevant concepts.

In: Operations Management

January 1: Issued 10,000 shares of common stock for $ 50,000. January 1: Acquired a building...

  1. January 1: Issued 10,000 shares of common stock for $ 50,000.
  2. January 1: Acquired a building costing $35,000, paying $5,000 in cash and borrowing the remaining from bank.
  3. During the year :acquired inventory costing $40,000 on account from various suppliers.
  4. During the year: sold inventory costing $30,000 for 65,000 on account.
  5. During the year: paid employees $15,000 as compensation for services rendered during the year.
  6. During the year: collected $45,000 from customers related to sales on account.
  7. During the year: Paid merchandise suppliers $28,000 related to purchases on account.
  8. Dec. 31: Recognized depreciation on the building of $7,000 for financial reporting depreciation expense for income tax purposes was $10,000
  9. Dec. 31: Recognized compensation for service rendered during the last week in Dec. but not paid by yearend of $4,000.
  10. Dec.31: Recognized and paid interest on the bank loan in part b of $2,400 for the year.
  11. Recognized income taxes on the net effect of the preceding transactions at an income tax rate of 40%. Assume that the firm pays cash immediately for any taxes currently due to the government.

In: Accounting

Rexon Company leases non-specialized equipment to Ten-Care Company beginning January 1, 2019. The lease terms, provisions,...

Rexon Company leases non-specialized equipment to Ten-Care Company beginning January 1, 2019. The lease terms, provisions, and related events are as follows:

1. The lease term is 8 years. The lease is noncancelable and requires equal rental payments to be made at the end of each year.
2. The cost of the equipment is $400,000. The equipment has an estimated life of 8 years and has a zero estimated value at the end of that time.
3. The equipment has a fair value of $400,000.
4. Ten-Care agrees to pay all executory costs directly to a third party.
5. The lease contains no renewal or bargain purchase option.
6. The interest rate implicit in the lease is 14%.
7. The initial direct costs are insignificant and assumed to be zero.
8. It is probable that Rexon will collect the lease payments plus any amount necessary to satisfy a residual value guarantee.

Required:

1. Next Level Assuming that the lease is a sales-type lease from Rexon’s point of view, calculate the amount of the equal rental receipts.
2. Prepare a table summarizing the lease receipts and interest income earned by Rexon.
3. Prepare journal entries for Rexon for the years 2019 and 2020.
CHART OF ACCOUNTS
Rexon Company
General Ledger
ASSETS
111 Cash
121 Accounts Receivable
122 Lease Receivable
123 Equipment Leased to Others
141 Inventory
152 Prepaid Insurance
LIABILITIES
211 Accounts Payable
231 Salaries Payable
250 Unearned Interest
261 Income Taxes Payable
EQUITY
311 Common Stock
331 Retained Earnings
REVENUE
411 Sales Revenue
433 Interest Income
EXPENSES
500 Cost of Goods Sold
511 Insurance Expense
512 Utilities Expense
521 Salaries Expense
532 Bad Debt Expense
540 Interest Expense
559 Miscellaneous Expenses
910 Income Tax Expense

1. Assuming that the lease is a sales-type lease from Rexon’s point of view, calculate the amount of the equal rental receipts.

Additional Instruction

$

2. Prepare a table summarizing the lease receipts and interest income earned by Rexon.

Additional Instructions

Rexon Company

Summary of Lease Payments Received and Interest Income Earned

1

Date

Annual Lease Payment Received

Interest Income at 14% on Net Investment

Reduction of Lease Receivable

Lease Receivable

2

January 1, 2019

3

December 31, 2019

4

December 31, 2020

5

December 31, 2021

6

December 31, 2022

7

December 31, 2023

8

December 31, 2024

9

December 31, 2025

10

December 31, 2026

3a. Prepare the journal entries for 2019.

General Journal Instructions

PAGE 2019

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

4

5

6

7

3b. Prepare the journal entries for 2020.

PAGE 2020

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

In: Accounting

Sparky, Inc. presented the following select balance sheet accounts for Plant, Property & Equipment as well...

Sparky, Inc. presented the following select balance sheet accounts for Plant, Property & Equipment as well as Intangibles as of December 31, 2018:

Plant, Property & Equipment:

     Equipment-FJ400Z (net of Accumulated Depreciation)

$ 319,200

Intangibles:

     Patent – FJ190X (net of Accumulated Amortization)

$ 162,000

The following information was reported in Sparky’s 10K filing as of December 31, 2018:

The equipment was purchased for $420,000 on October 1, 2017. It has an expected service life of 10 years and $32,000 salvage value. Sparky uses the Double-Declining Balance method for this class of asset.

The patent was acquired on January 1, 2018 and at that time had an estimated remaining useful life of 10 years.

During 2019, the following transactions and events may have affected Sparky’s long-lived assets:

July 1

Paid $68,000 in legal fees that resulted in the successful defense of Patent-FJ10-X. This event changed the estimated remaining useful life to five years from July 1, 2019.

Aug 1

Sparky paid $2,170,000 to acquire Medifast, a small start-up company, which became a division of Sparky. Medifast reported the following book values and fair values for their balance sheet at the time of acquisition:

Book Value   Fair Value

Cash $ 36,000 $ 36,000

Receivables 100,437 100,400

Plant & Equip (net) 640,275 654,200

Patents (remaining life 16 yrs) 60,000 854,000

Trademarks 14,652 187,450

Payables 58,900 58,900

*Sparky intends to continuously renew the trademark registration.   

Dec 31

At year-end, after recording the appropriate depreciation on Equipment-FJ400Z, Sparky determined it was necessary to perform an impairment test due to rapid changes in demand for the one and only product this piece of equipment produces. Sparky estimated the future net cash flows of the equipment to be $65,000 per year for the next three years. Sparky intends to continue using the equipment and evaluates PP&E using a discount rate of 15%. (PV of $1, 15%, 3n is .657 and PVOA, 15%, 3n is 2.625)

Using the above information, answer each of the following questions:

a.

Determine the amount of the Impairment Loss (if any) Sparky would report for the Equipment as of December 31, 2019:

b.Assume that early in 2020, Sparky determined that the equipment will only remain productive through December 31, 2021 and changed to the straight-line method for this asset. The salvage value was determined to be $10,075. Determine Depreciation Expense (if any) Sparky would record for this equipment as of December 31, 2020:

In: Accounting