MBA-AC721 Project Part 2 Create the 2018 budget for Buy-Right Bike Store (BRBS). Add a worksheet to your Project Excel workbook for BRBC Budgeted Income Statement and create the 2018 budget using the following information.

Budgeted Sales of Bike C: Online 75,000 bikes; instore 5,000 bikes. Bike C is purchased from Built-Right Bike Company, a sister company in the Biltmore Bicycle Corporation (BMBC), for $52 and is sold for $104.

Inventory: Beginning inventory: $ 52,000

Purchases 4,108,000

Sales ?

Ending Inventory $ 52,000

Employees:

Managerial Staff: Manager: 1 FTE, $45,000 annual salary plus 20% benefits

Bookkeeper: 1 FTE, $40,000 annual salary plus 20% benefits

Purchasing & Receiving Supervisor: 1 FTE, $35,000 annual salary plus 20% benefits Other staff: Warehouse: 2.5 FTEs make $15 per hour plus 17% benefits Online sales staff: 2 FTEs, $15 per hour plus 17% benefits (no commission)

NOTE: 1 FTE = 2080 hours

Store Hours: Monday – Saturday 10:00 am – 6:00 pm

2 sales clerks work from 10-3 M-F

3 sales clerks work from 3-6 M-F

4 sales clerks work 10-6 on Saturdays

Sales clerks earn $15 per hour plus 17% benefits Instore sales staff share commission equal to 10% of instore sales.

Budgeted Utility cost: $13,200

Budgeted Marketing Cost: $175,000

Contributions & community service: 10% of instore revenue

Other costs (includes depreciation, insurance, etc): $1,300,000

Income tax 29% of Net Revenue

After my MBA Full time completion since 2012 i have worked all across on various challenging roles of Sales and Marketing Assignments that too all across various parts and geographies of India but since 2017 i worked as an Area Marketing Manager and subsequently my interest and passion towards pursuing my career towards academics statred to grow as i love to speak and interact with people based on valid logic only and also to know about new things and gaining knowledge, currently i am 34 and my wife is also a government employee and now i want to be settle at one place and pursue my dream of completing Fellowship in Management with specialization in Marketing. Currently i am based at Mumbai and looking for a reputed B-School to pursue my FPM in Management full time in Mumbai or Pune. I want to know about good B School option in Mumbai or surroundings and also about my aspiration that whether my rich plethora of practical experiences will going to help me or not. I have also qualified UGC-NET 2019.

Problem 39:

You have just turned 30 years old, have just received your MBA, and have accepted your first job. Now you must decide how much money to put into your RRSP. Your RRSP works as follows: Every dollar in the plan earns 7% per year. You cannot make withdrawals until your 65th birthday. After that point, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you turn 65. You estimate that to live comfortably in retirement, you will need $100,000 per year starting at the end of the first year of retirement (i.e., when you turn 66) and ending on your 100th birthday. You will contribute the same amount to the plan at the end of every year that you work. How much do you need to contribute each year to fund your retirement?

**please list out step by step actions, please show the formulas used, please DONT USE excel**

Problem 40:

* Problem 39 is not very realistic because most people do not contribute a fixed amount to their RRSP each year. Instead, you would prefer to contribute a fixed percentage of your salary each year. Assume that your starting salary is $75,000 per year and it will grow 2% per year until you retire. Assuming everything else stays the same as in Problem 39, what percentage of your income do you need to contribute to the plan every year to fund the same retirement income?

**please list out step by step actions, please show the formulas used, please DONT USE excel**

2. Artie Siegel, an MBA student, has been having problems balancing his checkbook. His monthly income is derived from a graduate research assistantship; however, he also makes extra money in most months by tutoring undergraduates in their quantitative analysis course. His historical chances of various income levels are shown in the following table:

*Assume that this income is received at the beginning of each month.

Siegel’s expenditures also vary from month to month, and he estimates that they will follow this distribution:

He begins his final year with $600 in his checking account. Simulate the entire year (12 months) on the next page and discuss Siegel’s financial picture, i.e., will he be able to keep his head above water--(out of debt)? What is his expected average profit for the 12 months? Use the random numbers below.

Random numbers for Income and Expenses

Sam, a friend of Ken and Anna (married couple) has recommended that they set up a Self Managed Superannuation Fund (SMSF), as it will provide them with “better returns”. Sam has suggested that the SMSF purchase a property and that Karunesh and Asha can live in that property and pay the rent directly to the SMSF by making tax-deductible salary sacrifice contributions.

1. Does an SMSF provide better investment returns than an industry or retail fund? Provide a detailed explanation for your answer and quote and explain any relevant statistics that you may have sourced to support your argument.

2. List the amount and type of fees that Ken and Anna pay, in the first year, to set up and maintain their SMSF. What is the amount of GST that will be applicable on these fees? Cleary show all your workings.

3. Ken and Anna seek your advice on the recommendation provided by their friend Sam. In relation to this, what advice would you provide to them and why? Clearly list any breaches of relevant codes and/or legislations.

4. Tren, another friend of Ken and Anna, suggest that they should purchase an investment property via an SMSF structure. The property can be rented out to a tenant. Tom suggests rolling over all their existing superannuation’s and setting up an SMSF. The property is listed on the market for $550,000. Tren further suggests, that they set up another company as a corporate trustee to assist in this process. Assuming that they purchase it for that price

i. Clearly list and place an approximate dollar value on all other relevant incidental and additional costs associated with purchasing this property via the SMSF structure described above

ii. Explain to Ken and Anna, how they could go about this process – i.e. how to purchase the property via the SMSF via a loan etc. Support your explanation with a diagram or flow chart depicting the process.

5. What are the pros and cons of setting up a corporate trustee as opposed to Ken and Anna being individual trustees of their SMSF?

6. In relation to the above:

i. Explain LBRA to Ken and Anna  

ii. What interest rate could their SMSF obtain for the property loan and how does this compare with a loan for a similar property that was the outside superannuation? (You will need to research existing home loans and interest rates for this purpose – clearly provide your sources and references!)

7. Assume the property generates a rental income of $600 per week net of associated costs. Based on their personal incomes and other details provided in the fact find:

i. Calculate the amount the clients would receive net of tax, if the property was acquired in their personal names (in joint ownership).

ii. Now calculate this with how much they would receive if the property were acquired via their SMSF.

Assume this is for the period July 1 2019 to 30 June 2020 only

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale in years when circumstances warrant. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020.

(Hint: Interest must be accrued.)

Required:
1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale.
2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments.

Journal entry worksheet

• Record the acquisition of 5% Distribution Transformers Corporation bonds costing $600,000 at face value.

Note: Enter debits before credits.

• Record the acquisition of $1,200,000 of American Instruments’ 7% bonds at face value.

Note: Enter debits before credits.

• 
  Record the entry for the semiannual interest received on the Distribution Transformers bonds.

Note: Enter debits before credits.

• Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds.

Note: Enter debits before credits.

• 
  Record the entry for the reclassification adjustment on the date of sale.

Note: Enter debits before credits.

• 
  Record the entry for sale of Distribution Transformers bonds for $645,000.

Note: Enter debits before credits.

• 
  Record the acquisition of $1,600,000 of M&D Corporation 3% bonds at face value.

Note: Enter debits before credits.

• 
  Record the interest accrual for American Instruments bonds.

Note: Enter debits before credits.

• 
  Record the interest accrual for M&D bonds.

Note: Enter debits before credits.

• 
  Record the entry to adjust fair value of the investments at year-end.

Note: Enter debits before credits.

You have a €350,000 receivable. The spot rate is $1.0853/€. The European borrowing interest rate is 2.1% and the U.S. borrowing rate is 2.2%. The European deposit interest rate 2 is 0.8% and the U.S. deposit interest rate is 0.5%. Calculate the dollar amount of a money market hedge.

Compare and contrast stratification in Mexico to the United States. Do U.S. consumers benefit from the buildup of factories along the U.S.-Mexican border? How or how not? How do the borderlands increase social mobility within Mexico? How do they hinder it? (simplified answer please)

The National Coffee Association reported that 64 % of U.S. adults drink coffee daily. A random sample of 225 U.S. adults is selected. Round your answers to at least four decimal places as needed.

probability of adults who drink coffee daily between .60 and .72