JRM Co. is in the process of closing its books for the year ended December 31, year 2.

The following business events are not properly reflected in JRM’s December 31, year 2, unadjusted trial balance:
  

The controller determined that half of the recorded rent expense is attributed to year 3.

JRM depreciates its property, plant and equipment using the straight-line method over 10 years. The property, plant and equipment had an original cost of $20,000 and a salvage value of $5,000.

JRM uses the percentage-of-sales method to determine the addition to bad debt expense. Uncollectible accounts receivable for year 2 was estimated to be 0.25%.

On December 31, year 2, a customer declared bankruptcy and its account receivable of $855 is uncollectible.

Life insurance premium for the period ended December 31, year 2, of $650 for key members of management are included in prepaid expense.

Interest of $300 was earned and outstanding on notes receivable during year 2. The note receivable is due at the end of year 5.

Income taxes for year 2 are estimated to be $3,000.

Based on the business events above, calculate the adjustments necessary to JRM’s unadjusted trial balance by entering the appropriate debit and credit amounts in columns D and E, respectively. Enter debit adjustments as positive values and credit adjustments as negative values. If there is no adjustment needed, enter zero as the adjustment.
  
The amounts in column F will automatically calculate.
  

Consider a project with free cash flow in one year of $146,076 or $198,619​, with either outcome being equally likely. The initial investment required for the project is $75,000​, and the​ project's cost of capital is 21%. The​ risk-free interest rate is 6%. (Assume no taxes or distress​ costs.)

a. What is the NPV of this​ project?

b. Suppose that to raise the funds for the initial​ investment, the project is sold to investors as an​ all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this way-that ​is, what is the initial market value of the unlevered​ equity?  

c. Suppose the initial $75,000 is instead raised by borrowing at the​ risk-free interest rate. What are the cash flows of the levered​ equity, and what is its initial value according to​ M&M?

a. What is the NPV of this​ project?

The NPV is ​$______ (Round to the nearest​ dollar.)

b. Suppose that to raise the funds for the initial​ investment, the project is sold to investors as an​ all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this way-that ​is, what is the initial market value of the unlevered​ equity?  

The initial market value of the unlevered equity is ​$_____ (Round to the nearest​ dollar.)

C) Suppose the initial $75,000 is instead raised by borrowing at the​ risk-free interest rate. What are the cash flows of the levered​ equity, and what is its initial value according to​ M&M?

The cash flows of the levered equity and the initial market value of the levered equity according to​ M&M is:​(Round to the nearest​ dollar.)

                          Date 0                                                                           Date 1

                Initial Value                   Cash Flow Strong Economy                   Cash Flow Weak Economy

Debt           $75,000

Levered Equity

The following table contains data for the U.S. balance of payments in a prior year. Answer the question on the basis of this information. All figures are in billions of dollars. U.S. goods exports +$793 U.S. goods imports -1573 U.S. exports of service +280 U.S. imports of services -222 Net investment income +5 Net transfers -81 Capital account -5 Foreign purchases of assets in the U.S. +1198 U.S. purchases of foreign assets -395 Refer to the table above. The data indicate that Americans:

a)Earned more from their investments abroad than foreigners earned from their investments in America

b)Sold more products to buyers abroad than what foreign producers sold to buyers in America

c)Bought foreign assets abroad more than foreigners bought assets in the U.S.

d)Invested abroad more than foreigners invested in America

A firm is considering investing in a 25 year capital budgeting project with a net investment of 14 Million. The project is expected to generate annual net cash flows each year of 2 million and a terminal value at the end of the project of 1 million. The firms costs of capital is 14 percent and marginal tax rate is 40%. What is the internal rate of return of this investment?

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

1-a. Compute the throughput time for each month.
1-b. Compute the delivery cycle time for each month.
1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

(Round your intermediate calculations and final answers to 1 decimal place.)

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2. Evaluate the company’s performance over the last four months.

Evaluate the company’s performance over the last four months. (Indicate the effect of each trend by selecting "Favorable" or  "Unfavorable" or "None" for no effect (i.e., zero variance).

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

3-a. (Month 5) Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. (Month 6) Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

(Round your intermediate calculations and final answers to 1 decimal place.)

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The total factory overhead for Bardot Marine Company is budgeted for the year at $522,500, divided into two departments: Fabrication, $190,000, and Assembly, $332,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require one direct labor hour in Fabrication and four direct labor hours in Assembly. The bass boats require one direct labor hour in Fabrication and three direct labor hours in Assembly. Each product is budgeted for 5,000 units of production for the year.

When required, round all per unit answers to the nearest cent.

a. Determine the total number of budgeted direct labor hours for the year in each department.

b. Determine the departmental factory overhead rates for both departments.

c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.

Prepare adjusting entries for the following items on December 31, the end of the fiscal year for Carson Carpets. The company initially records cash received in advance of performing the service as a liability, and prepaid expenses as current assets.

a) Amortization on equipment, $2,500

b) Services performed but unbilled, $3,500

c) Salaries owed to employees at year end, $2,500

d) Unearned service revenue earned, $5,500

e) Supplies used during the year, $3,200

The units of an item available for sale during the year were as follows:

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

James Lewis is a 24-year-old male who is seen in the clinic for "pain in the groin." During the interview the patient states, "I have a soreness in my groin area on both sides." Mr. Lewis denies any trauma to the area, states he has not done any heavy lifting, nor has he been involved in athletic activities or "working out." He reports that he is in good health. He does not take any medications except vitamins and, occasionally, some non-aspirin product for a headache. He denies nausea, vomiting, diarrhea, or fever. He has no pain in his legs or back. He tells the nurse his appetite is okay but he is tired. He thinks his fatigue is because he's been "a little worried about this problem and really having a hard time deciding to come in for help."

When asked about the onset of the problem, Mr. Lewis explains that he "started feeling some achiness about a week ago." When asked if he has ever experienced these feelings before, he replies, "No." He is then asked to describe or discuss any other symptoms. He looks away, shifts in his chair, and then says, "Well, I have had some burning when I pass urine and it's kind of cloudy."

When asked if he has ever had a problem like this before, he replies, "Yes, about 2 months ago." With further questioning, the nurse learns that Mr. Lewis was diagnosed with gonorrhea and treated with an injection and pills he was supposed to take for a week. He says he was not supposed to have sex until he finished the pills. When asked if he followed the prescribed treatment, he reluctantly responds that he finished all but a couple of pills and he did have sex with one of his girlfriends about 4 or 5 days after he got the injection. Mr. Lewis tells the nurse he did not inform his girlfriends of his problem and he generally avoids condoms because "I've known these girls for a long time."

The physical assessment yields the following information: B/P 128/86, P 96, RR 20, T 98.6. His color is pale, and the skin is moist and warm. External genitalia are intact, without lesions or erythema. There is lymphadenopathy in bilateral groin areas. Compression of the glans yields milky discharge. A smear of urethral discharge is obtained.

The nurse knows that Mr. Lewis's original gonococcal infection was treated with an injection, most likely ceftriaxone. The nurse also knows that chlamydia is present in almost half of the patients with gonorrhea and is treated with a 7-day regimen of oral antibiotics. Between 40% and 60% of patients with gonorrhea have lymphadenopathy.

Based on the data, the nurse suspects that Mr. Lewis has a reinfection with gonorrhea and may have a concomitant chlamydial infection.

The nurse recommends single-injection treatment for gonorrhea and a new oral regimen for chlamydia. A urine specimen will be obtained and submitted with the urethral discharge smear. The patient will be scheduled for a follow-up phone conference about the laboratory results in 48 hours and a return visit in 7 days. The nurse conducts an information, education, and advice session prior to discharge from the clinic

Jessica Johnson, a 24-year-old Caucasian female, arrives in the clinic with lower abdominal pain and nausea. She states, "I've had this throbbing pain for 3 days and it kept getting worse." She further states, "I haven't been able to eat. I feel awful. You have to do something for the pain."

The nurse explains that more information is needed so that the proper treatment can be initiated. In further interview the following information is obtained. Ms. Johnson's last menstrual period was 1 week ago and she had more crampiness than usual. She has had brownish, thick vaginal discharge on and off since then. She has had some itchiness in the vaginal area and burning when she voids. She states she has to go to the bathroom all the time: "All I did was pee little bits, until this pain got to me. I have hardly gone since last night."

When asked about the pain, Ms. Johnson says it is mostly 8 on a scale of 1 to 10 and getting pretty constant. "Nothing I do helps, except it helps a little if I curl up and hold still."

Physical assessment reveals a thin, pale female. VS: B/P 108/64, P 92, RR 20, T 101.4°F. Skin is hot, dry, poor turgor. Mucous membranes dry. Posture—abdominal guarding. Abdomen BS positive in all 4 quadrants , tenderness in RLQ  drainage, pain upon cervical and uterine movement. Cultures from vaginal secretions obtained To lab, Blood drawn for CBC, To lab Urine specimen obtained—clear, yellow To lab

The patient's clinic record reveals that she has been sexually active since age 16. She has had multiple partners and one abortion. She has been treated for an STD three times, most recently 2 months prior to this visit. The patient is on birth control pills. She has no allergies to medications, and no family history of cardiovascular, abdominal, neurologic, urologic, endocrine, or reproductive disease.

Interpretation of the data suggests a diagnosis of PID. The options are outpatient treatment with antibiotics and education about limitations in activity and sexual practices, or inpatient treatment with intravenous fluids, antibiotics, analgesia, and bed rest.

Because Ms. Johnson is acutely ill, with pain and dehydration, she is admitted to the acute care facility with a diagnosis of PID.

questions:

Clinical Challenge question:

1.What healthy people 2020 objectives are related to each scenario: James Lewis and Jessica Johnson?