Of all the times this hard drive could crash, it had to be now, ” Marcy cried. “How can I finish the June financial reports without all the information? I knew I should have backed up the disk last night before I left work.” News of the disaster traveled quickly through the office, and people began to stop by her cubicle to offer their help.

     John was the first to the rescue. “It might not be as bad as you think, Marcy. I have the financial reports from May right here. According to the balance sheet, we had a total inventory of $99,000 at the end of May. And I remember that the Finished Goods Inventory was one-third of that amount.”

     “I just finished the inventory counts last night,” Peter chimed in from across the hall. “According to my tally sheets, we finished June with $80,000 in Direct Materials Inventory, $52,000 in Work in Process Inventory, and $25,000 in Finished Goods Inventory. This was a 100% increase from the balances in Direct Materials Inventory and Work in Process Inventory at the end of May. I bet with a little more investigative work, we can get all the numbers you need to complete the reports.”

     Sally called from Payroll to tell Marcy that the company had paid a total of $36,000 for direct labor during June. Juan, the billing supervisor, e-mailed Marcy that the company had sent out invoices to customers totaling $291,000.

     Marcy knew that the overhead rate was 200% of direct labor costs. She also knew that the company priced its product using a 50% markup on the cost of goods sold. Armed with all this information, she sat down to reconstruct the inventory accounts for June.

1. Begininng finished goods:

2. Beginning direct materials:

3. Beginning work in process:

4. Cost of goods sold:

5. Cost of goods manufactured

6. Direct material used:

7. Purchases:

8. Direct labor:

9. overhead:

Estimated Income Statements, using Absorption and Variable Costing

Prior to the first month of operations ending October 31 Marshall Inc. estimated the following operating results:

The company is evaluating a proposal to manufacture 27,200 units instead of 24,800 units, thus creating an Inventory, October 31 of 2,400 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses.

a. 1. Prepare an estimated income statement, comparing operating results if 24,800 and 27,200 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank or enter “0”.

a. 2. Prepare an estimated income statement, comparing operating results if 24,800 and 27,200 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank or enter “0”.

1. break down a television set into the 5 inventory categories (raw materials, work-progress, finished goods,goods in transit, annd returns)

You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks:

Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 5%, and you believe the following probability distribution for future market returns is realistic:

What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.)

r_i = 4.4% + (5.9%)b_i

r_i = 5.0% + (4.9%)b_i

r_i = 2.3% + (6.1%)b_i

r_i = 5.0% + (5.9%)b_i

r_i = 4.4% + (4.9%)b_i

-Select-IIIIIIIVV

Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places.
%

Suppose Rick Kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 million, it has an expected return of 15%, and its estimated beta is 1.4. Should Kish invest in the new company?
The new stock -Select-should notshould be purchased.

At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places.

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2017 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.

Example 5-1

Parlone Company has paid wages of $4,000 to an employee in State A. During the year, the employee is transferred to State B, which has a $7,000 taxable salary limitation for its state unemployment tax. The company has a credit of $4,000 against this $7,000 limit. Thus, the company has to pay State B's unemployment tax on only the next $3,000 of wages earned by that worker in State B during the remainder of the calendar year.

In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Ohio. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Ohio. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company paid Herb Porter wages of $19,500; $3,000 were paid in Nebraska and the remainder in Ohio. Compute the following: round your answers to the nearest cent.

a. Amount of SUTA tax the company must pay to Nebraska on Porter's wages
$________

b. Amount of SUTA tax the company must pay to Ohio on Porter's wages
$________

c. Amount of the net FUTA tax on Porter's wages
$_________

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2018 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.

Example 5-1

Parlone Company has paid wages of $4,000 to an employee in State A. During the year, the employee is transferred to State B, which has a $7,000 taxable salary limitation for its state unemployment tax. The company has a credit of $4,000 against this $7,000 limit. Thus, the company has to pay State B's unemployment tax on only the next $3,000 of wages earned by that worker in State B during the remainder of the calendar year.

In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Michigan. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company paid Herb Porter wages of $20,900; $2,800 were paid in Nebraska and the remainder in Michigan. Compute the following:

Round your answers to the nearest cent.

a. Amount of SUTA tax the company must pay to Nebraska on Porter's wages
$

b. Amount of SUTA tax the company must pay to Michigan on Porter's wages
$

c. Amount of the net FUTA tax on Porter's wages
$

Suppose Toyota Corp. and Honda Corp. are deciding whether to make mobile wifi a standard feature on next year’s economy-size car models. If both firms make wifi standard, Toyota will earn $5 billion in profit and Honda will earn $5.2 billion in profit. If neither adopts wifi as standard, then Toyota will earn $6 billion in profit and Honda will earn $3.8 billion in profit. If Toyota adopts the technology and Honda doesn’t, then Toyota will earn $4 billion in profit and Honda will make a loss of $2 billion. If Honda adopts the technology and Toyota doesn’t, then Honda will earn $2.5 billion in profit and Toyota will make a loss of $0.5 billion. These profits are all the companies care about.

(i) Suppose this is a simultaneous decision. Create a game table illustrating the above scenario, where each player’s payoff is its profit.

Suppose you are a strategic consultant for Honda Corp. Based on the above table, explain in common language what recommendation you would give to Honda? Do either of the firms have a dominant strategy? What is the Nash equilibrium? Use and explicitly refer to the information from your table in your answer.

(ii) Suppose this is a sequential decision, with Toyota Corp. as the first mover. Create a game tree illustrating the above scenario, where each player’s payoff is its profit.

Suppose, again, that you are a strategic consultant for Honda Corp. Based on the above tree, explain in common language what Honda should do? What is the rollback equilibrium? Use and explicitly refer to the information from your tree in your answer.

(1) Read in the data and create an R data frame named tennis.dfr 
that has the following names for its columns:  first.name, last.name,
major.match.wins, major.match.losses, overall.match.wins, 
overall.match.losses, major.titles, overall.titles.  (Note that the 
data file has several explanatory lines before the real data begin 
that should be skipped when reading in the data lines.)
NOTE:  For the file name, you must use the following web address (URL): 
"http://people.stat.sc.edu/hitchcock/tennisplayers2018.txt".  
Please do not have your code read in the file from your own personal directory.

(2) Create and add two more columns called major.winning.pct and 
overall.winning.pct (showing winning percentage in the "major" and 
"overall" categories, respectively) to this data frame.
  
Note that "winning percentage" is defined 
as (match wins)/(match wins + match losses).

(3) Sort the data frame by major titles, from most to least.  
Have your program print the sorted data frame.

(4) Perform a nested sort, sorting the data frame first by major
titles (from most to least), and then by major winning percentage 
(from most to least) within major-title levels.
Have your program print this sorted data frame.

(5) Have R extract the subset of the data frame consisting of players
with at least 6 major titles.  Call this new data frame: greatest.dfr
Have your program print this new data frame.

(6)  In the most efficient way possible, have R calculate the sample means 
for each of the numeric variables in the tennis.dfr data set.
(Hint: Extract the appropriate subset of the data frame first.)

(7) Use the write.table() function to write the data set tennis.dfr to an
external file simply called "tennisdata.txt".  Make sure the external file includes the column names.
Also, make sure the players' names are NOT surrounded by quotes in the 
external file.