Burton, a manufacturer of snowboards, is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is given. · The proposed machine will cost $120,000 and have installation costs of $20,000. It will be depreciated using a 3 year MACRS recovery schedule. It can be sold for $60,000 after three years of use (before tax; at the end of year 3).
The existing machine was purchased two years ago for $95,000 (including installation). It is being depreciated using a 3 year MACRS recovery schedule. It can be sold today for $20,000. It can be used for three more years, but after three more years it will have no market value.
The earnings before taxes and depreciation (EBITDA) are as follows: o New machine: Year 1: 133,000, Year 2: 96,000, Year 3: 127,000 o Existing machine: Year 1: 84,000, Year 2: 70,000, Year 3: 74,000
Burton pays 40 percent taxes on ordinary income and capital gains, and uses a WACC of 14%. · The maximum payback period allowed is 3 years.
They expect a large increase in sales so their Net Working Capital will increase by $20,000 when they buy the machine and it will be recovered at the end of the project life.
a. Calculate the initial investment required for this project.
b. Determine the incremental after-tax operating cash flows
c. Find the terminal cash flow for the project
d. Find the Discounted Payback period, NPV, IRR, and MIRR.
e. Should the new machine be purchased? Why or why not?
In: Finance
You have already implemented a Queue before that works
on First Come First served basis.
In this assignment you are to implement a class that works on Last
In First Out. Such a structure is called a Stack. It only allows
two operations add (named push) and remove (named pop).
Push only allows adding any data item to the last entry
place.
Pop only allows you to remove the last added entry from the
stack.
For example if your stack has items (means values
where added in the order 12 then 30 then 15)
12 30 15
After Push(45) the stack will look like
12 30 15 45
After call to Pop() the stack must look like
12 30 15
After another call to Pop() the stack must look
like
12 30
You must implement a Stack as a class.
This should have
three methods
constructor: That will declare an empty array of 5 elements.
Pop: This function will just remove a value from the last of the
Stack and return it to the user.
Push: This method will take an item as argument to be added to the
stack.
If the space in the stack is not full the item will be added to the
end of the stack
If the stack is full with items then a new array must be declared
that is double the size of the last array and all values must be
copied to the new array before the new item is added to the last of
these values.
NOTE: The code must be in "C LANGUAGE"
THANK YOU
In: Computer Science
1. Burton, a manufacturer of snowboards, is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is given.
The proposed machine will cost $120,000 and have installation costs of $20,000. It will be depreciated using a 3 year MACRS recovery schedule. It can be sold for $60,000 after three years of use (before tax; at the end of year 3).
The existing machine was purchased two years ago for $95,000 (including installation). It is being depreciated using a 3 year MACRS recovery schedule. It can be sold today for $20,000. It can be used for three more years, but after three more years it will have no market value.
The earnings before taxes and depreciation (EBITDA) are as follows: oNew machine: Year 1: 133,000, Year 2: 96,000, Year 3: 127,000 oExisting machine: Year 1: 84,000, Year 2: 70,000, Year 3: 74,000
Burton pays 40 percent taxes on ordinary income and capital gains, and uses a WACC of 14%.
The maximum payback period allowed is 3 years.
They expect a large increase in sales so their Net Working Capital will increase by $20,000 when they buy the machine and it will be recovered at the end of the project life.
a.Calculate the initial investment required for this project.
b.Determine the incremental after-tax operating cash flows
c.Find the terminal cash flow for the project
d.Find the Discounted Payback period, NPV, IRR, and MIRR.
e.Should the new machine be purchased? Why or why not?
In: Finance
Respiratory Case Histories - Case 13
A 150 lb., 62-year-old man had a chronic productive cough, exertional dyspnea, mild cyanosis, and marked slowing of forced expiration. His pulmonary function and laboratory tests follow:
| Frequency | 16 breaths/min |
| Alveolar ventilation | 4.2 L/min |
| Vital capacity (VC) | 2.2 L |
| Functional residual capacity (FRC) | 4.0 L |
| Total lung capacity (TLC) | 5.2 L |
| Maximum inspiratory flow rate | 250 L/min |
| Maximum expiratory flow rate | 20 L/min |
| PaO2 | 62 mm Hg |
| PaCO2 | 39 mm Hg |
Pulmonary function tests after bronchodilator therapy:
| Frequency | 16 breaths/min |
| Alveolar ventilation | 4.35 L/min |
| VC | 2.4 L |
| FRC | 4.0 L |
| TLC | 5.2 L |
| Maximum inspiratory flow rate | 250 L/min |
| Maximum expiratory flow rate | 23 L/min |
| PaO2 | 62 mm Hg |
| PaCO2 | 38 mm Hg |
1. What is the disorder of this 62-year-old man?
2. Is this primarily a restrictive or an obstructive disorder? Why?
3. Why is the bronchodilator therapy ineffective in this man?
4. What causes the hypoxemia?
6. What is the cause of this altered RV?
7. Calculate the tidal volume (TV) for this person before and
after the bronchodilator therapy.
8. Is each TV normal or altered?
9. Calculate the minute ventilation (MV) for this person before and after the bronchodilator therapy.
10. Is each MV normal or altered?
In: Anatomy and Physiology
Cornerstone Exercise 16.4 (Algorithmic)
After-Tax Profit Targets
Olivian Company wants to earn $420,000 in net (after-tax) income next year. Its product is priced at $250 per unit. Product costs include:
| Direct materials | $75.00 |
| Direct labor | $55.00 |
| Variable overhead | $12.50 |
| Total fixed factory overhead | $425,000 |
Variable selling expense is $10 per unit; fixed selling and administrative expense totals $275,000. Olivian has a tax rate of 40 percent.
Required:
1. Calculate the before-tax profit needed to
achieve an after-tax target of $420,000.
$
2. Calculate the number of units that will
yield operating income calculated in Requirement 1 above. If
required, round your answer to the nearest whole unit.
units
3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. Do NOT round interim calculations and, if required, round your answer to the nearest dollar.
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4. What if Olivian
had a 35 percent tax rate? Would the units sold to reach a $420,000
target net income be higher or lower than the units calculated in
Requirement 2?
- Select your answer -HigherLowerCorrect 1 of Item 3
Calculate the number of units needed at the new tax rate. In
your calculations, round before-tax income to the nearest dollar.
Round your answer to the nearest whole unit.
units
In: Finance
Problem 23-08
Comparative balance sheet accounts of Coronado Company are presented below.
|
CORONADO COMPANY |
||||
|
Debit Balances |
2020 |
2019 |
||
| Cash |
$69,600 |
$51,100 |
||
| Accounts Receivable |
156,500 |
130,000 |
||
| Inventory |
75,700 |
60,800 |
||
| Debt investments (available-for-sale) |
55,000 |
85,300 |
||
| Equipment |
69,600 |
47,800 |
||
| Buildings |
144,900 |
144,900 |
||
| Land |
39,600 |
25,200 |
||
| Totals |
$610,900 |
$545,100 |
||
|
Credit Balances |
||||
| Allowance for Doubtful Accounts |
$10,000 |
$8,000 |
||
| Accumulated Depreciation—Equipment |
20,800 |
14,100 |
||
| Accumulated Depreciation—Buildings |
37,000 |
27,900 |
||
| Accounts Payable |
66,500 |
59,800 |
||
| Income Taxes Payable |
11,900 |
10,000 |
||
| Long-Term Notes Payable |
62,000 |
70,000 |
||
| Common Stock |
310,000 |
260,000 |
||
| Retained Earnings |
92,700 |
95,300 |
||
| Totals |
$610,900 |
$545,100 |
||
Additional data:
| 1. | Equipment that cost $10,000 and was 60% depreciated was sold in 2020. | |
| 2. | Cash dividends were declared and paid during the year. | |
| 3. | Common stock was issued in exchange for land. | |
| 4. | Investments that cost $34,800 were sold during the year. | |
| 5. | There were no write-offs of uncollectible accounts during the year. |
Coronado’s 2020 income statement is as follows.
| Sales revenue |
$955,000 |
||||
| Less: Cost of goods sold |
601,700 |
||||
| Gross profit |
353,300 |
||||
| Less: Operating expenses (includes depreciation expense and bad debt expense) |
252,500 |
||||
| Income from operations |
100,800 |
||||
| Other revenues and expenses | |||||
| Gain on sale of investments |
$15,000 |
||||
| Loss on sale of equipment |
(2,900 |
) |
12,100 |
||
| Income before taxes |
112,900 |
||||
| Income taxes |
45,300 |
||||
| Net income |
$67,600 |
(a) Compute net cash provided by operating
activities under the direct method. (Enter negative
amounts using either a negative sign preceding the number e.g. -45
or parentheses e.g. (45).)
| Net cash flow from operating activities | $ |
(b) Prepare a statement of cash flows using the
indirect method. (Show amounts that decrease cash flow
with either a - sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
| $ | ||
| $ | ||
| $ | ||
| $ |
In: Accounting
Comparative balance sheet accounts of Splish Company are
presented below.
|
SPLISH COMPANY |
||||
|
Debit Balances |
2020 |
2019 |
||
| Cash |
$70,600 |
$50,500 |
||
| Accounts Receivable |
155,100 |
130,000 |
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| Inventory |
75,600 |
61,100 |
||
| Debt investments (available-for-sale) |
55,100 |
84,300 |
||
| Equipment |
70,300 |
48,400 |
||
| Buildings |
144,400 |
144,400 |
||
| Land |
39,600 |
25,300 |
||
| Totals |
$610,700 |
$544,000 |
||
|
Credit Balances |
||||
| Allowance for Doubtful Accounts |
$10,000 |
$7,900 |
||
| Accumulated Depreciation—Equipment |
21,000 |
14,100 |
||
| Accumulated Depreciation—Buildings |
37,300 |
28,200 |
||
| Accounts Payable |
66,400 |
60,600 |
||
| Income Taxes Payable |
11,900 |
9,900 |
||
| Long-Term Notes Payable |
62,000 |
70,000 |
||
| Common Stock |
310,000 |
260,000 |
||
| Retained Earnings |
92,100 |
93,300 |
||
| Totals |
$610,700 |
$544,000 |
||
Additional data:
| 1. | Equipment that cost $10,100 and was 60% depreciated was sold in 2020. | |
| 2. | Cash dividends were declared and paid during the year. | |
| 3. | Common stock was issued in exchange for land. | |
| 4. | Investments that cost $34,600 were sold during the year. | |
| 5. | There were no write-offs of uncollectible accounts during the year. |
Splish’s 2020 income statement is as follows.
| Sales revenue |
$949,600 |
||||
| Less: Cost of goods sold |
600,500 |
||||
| Gross profit |
349,100 |
||||
| Less: Operating expenses (includes depreciation expense and bad debt expense) |
247,700 |
||||
| Income from operations |
101,400 |
||||
| Other revenues and expenses | |||||
| Gain on sale of investments |
$14,900 |
||||
| Loss on sale of equipment |
(3,100 |
) |
11,800 |
||
| Income before taxes |
113,200 |
||||
| Income taxes |
44,600 |
||||
| Net income |
$68,600 |
(a) Compute net cash provided by operating
activities under the direct method. (Enter negative
amounts using either a negative sign preceding the number e.g. -45
or parentheses e.g. (45).)
| Net cash flow from operating activities | $ |
(b) Prepare a statement of cash flows using the
indirect method. (Show amounts that decrease cash flow
with either a - sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
In: Accounting
Comparative balance sheet accounts of Carla Company are
presented below.
|
CARLA COMPANY |
||||
|
Debit Balances |
2020 |
2019 |
||
| Cash |
$69,900 |
$50,600 |
||
| Accounts Receivable |
154,800 |
130,300 |
||
| Inventory |
75,700 |
61,400 |
||
| Debt investments (available-for-sale) |
55,100 |
84,600 |
||
| Equipment |
69,300 |
48,400 |
||
| Buildings |
145,700 |
145,700 |
||
| Land |
40,200 |
25,200 |
||
| Totals |
$610,700 |
$546,200 |
||
|
Credit Balances |
||||
| Allowance for Doubtful Accounts |
$10,100 |
$7,900 |
||
| Accumulated Depreciation—Equipment |
21,000 |
14,000 |
||
| Accumulated Depreciation—Buildings |
36,800 |
28,100 |
||
| Accounts Payable |
65,600 |
59,500 |
||
| Income Taxes Payable |
12,000 |
10,100 |
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| Long-Term Notes Payable |
62,000 |
70,000 |
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| Common Stock |
310,000 |
260,000 |
||
| Retained Earnings |
93,200 |
96,600 |
||
| Totals |
$610,700 |
$546,200 |
||
Additional data:
| 1. | Equipment that cost $10,100 and was 60% depreciated was sold in 2020. | |
| 2. | Cash dividends were declared and paid during the year. | |
| 3. | Common stock was issued in exchange for land. | |
| 4. | Investments that cost $35,100 were sold during the year. | |
| 5. | There were no write-offs of uncollectible accounts during the year. |
Carla’s 2020 income statement is as follows.
| Sales revenue |
$943,500 |
||||
| Less: Cost of goods sold |
595,900 |
||||
| Gross profit |
347,600 |
||||
| Less: Operating expenses (includes depreciation expense and bad debt expense) |
247,500 |
||||
| Income from operations |
100,100 |
||||
| Other revenues and expenses | |||||
| Gain on sale of investments |
$14,900 |
||||
| Loss on sale of equipment |
(3,000 |
) |
11,900 |
||
| Income before taxes |
112,000 |
||||
| Income taxes |
45,500 |
||||
| Net income |
$66,500 |
(a) Compute net cash provided by operating
activities under the direct method. (Enter negative
amounts using either a negative sign preceding the number e.g. -45
or parentheses e.g. (45).)
| Net cash flow from operating activities | $ |
(b) Prepare a statement of cash flows using the
indirect method. (Show amounts that decrease cash flow
with either a - sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
In: Accounting
q. 27
JBL Aircraft manufactures and distributes aircraft parts and
supplies. Employees are offered a variety of share-based
compensation plans. Under its nonqualified stock option plan, JBL
granted options to key officers on January 1, 2018. The options
permit holders to acquire 6.5 million of the company's $1 par
common shares for $22 within the next six years, but not before
January 1, 2021 (the vesting date). The market price of the shares
on the date of grant is $26 per share. The fair value of the 6.5
million options, estimated by an appropriate option pricing model,
is $6 per option. Because the plan does not qualify as an incentive
plan, JBL will receive a tax deduction upon exercise of the options
equal to the excess of the market price at exercise over the
exercise price. The tax rate is 40%.
Required:
1. Determine the total compensation cost
pertaining to the incentive stock option plan.
2. & 3. Record the necessary journal entries
on December 31, 2018, 2019, and 2020. Assume all of the options are
exercised on August 21, 2022, when the market price is $27 per
share.
Determine the total compensation cost pertaining to the incentive stock option plan. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)
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req.2
journal 1.Record compensation expense on December 31, 2018.
journal 2.Record any tax effect related to compensation expense recorded in 2018.
journal 3.Record compensation expense on December 31, 2019.
journal 4. Record any tax effect related to compensation expense recorded in 2019.
journal 5.Record compensation expense on December 31, 2020.
journal 6.Record any tax effect related to compensation expense recorded in 2020.
journal 7.Record the exercise of the options on August 21, 2022 when the market price is $27 per share.
journal 8.Record any tax effect related to the exercise of the options.
In: Accounting
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In: Accounting