The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current fiscal year:

During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:

Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

ACCOUNTING EQUATION

A new chemical plant will be constructed. The following data is used for this construction. Using this data;

1. Draw the Cumulative Cash Flow Diagram for Nondiscounted and Discounted after-tax cash flows.
2. Define the profitability criteria for each Cash Flows (Nondiscounted and Discounted)
3. Calculate and show, PBP, CCP, CCR, ROROI, DPBP, NPV, DCFROR on the Cash Flow Diagram.

DATA:

Cost of Land, L           : 5x10⁶ TL

FCI, during year 1       : 7x10⁶ TL

FCI, during year 2       : 30x10⁶ TL

FCI, during year 3       : 50x10⁶ TL

Plant start-up at the end of year 3

Working Capital          : 20x10⁶ TL at the end of year 3

Yearly sales revenue (after start-up) : R = 80 x10⁶ TL per year

Cost of Manufacturing excluding depreciation allowance(after start-up):

COM =40 x10⁶TL per year

Taxation rate, t = 30%

Salvage value of the plant, S = 5x10⁶ TL

Total Project life : 8 years

Depreciation: Use 3 years after start-up

Depreciation = d = (FCI-Salvage value)/n

Discount rate = 20%

CCR= 1 + (CCP/(Land+WC+FCI_L) or

CCR = (sum of all positive cash flows/ sum of all negative cash flows)

ROROI = Average annual net profit/ FCI_L

PVR = (present value of all positive cash flows/ present value of all negative cash flows)

Net Profit = (R-COM-d)(1-t)+d

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current fiscal year:

Preferred 2% Stock, $75 par (100,000 shares authorized, 80,000 shares issued) $6,000,000

Paid-In Capital in Excess of Par—Preferred Stock 420,000

Common Stock, $8 par (5,000,000 shares authorized, 3,000,000 shares issued) 24,000,000

Paid-In Capital in Excess of Par—Common Stock 1,850,000

Retained Earnings 115,400,000

During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:

Jan. 5 Issued 400,000 shares of common stock at $11, receiving cash.

Feb. 10 Issued 5,000 shares of preferred 2% stock at $90.

Mar. 19 Purchased 150,000 shares of treasury stock for $10 per share.

May 16 Sold 80,000 shares of treasury stock for $13 per share.

Aug. 25 Sold 20,000 shares of treasury stock for $9 per share.

Dec. 6 Declared cash dividends of $1.50 per share on preferred stock and $0.06 per share on common stock.

31 Paid the cash dividends. Journalize the entries to record the transactions.

Refer to the Chart of Accounts for exact wording of account titles.

At a construction site, a helicopter is lifting two steel beams, each with a mass of 290 kg. One steel beam is attached directly to the helicopter by a cable. The second steel beam is not attached to the helicopter directly, but it is instead hanging directly below the first steal beam and attached to the first beam by another cable. Assume the cables have no mass.

(a) If the steel beams are at rest, what is the tension in each cord?

(lower cable) _______ N

(upper cable) _______ N

(b) If the steel beams are pulled upward with an acceleration of 1.70 m/s² calculate the tension is each cable.

(lower cable) ______ N

(upper cable) _______ N

You are considering the construction of a portfolio comprised of equal investments in each of four different stocks. The betas for each stock are found? below:

a.??What is the portfolio beta for your proposed investment? portfolio?

b.??How would a 25 percent increase in the expected return on the market impact the expected return of your? portfolio?

c.??How would a 25 percent decrease in the expected return on the market impact the expected return on each? asset?

d.??If you are interested in decreasing the beta of your portfolio by changing your portfolio allocation in two? stocks, which stock would you decrease and which would you? increase? ? Why?

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

Issued 70,000 shares of common stock at $25, receiving cash.

Issued 13,000 shares of preferred 2% stock at $69.

Purchased 42,000 shares of treasury common for $25 per share.

Sold 21,000 shares of treasury common for $28 per share.

Sold 14,000 shares of treasury common for $23 per share.

Declared cash dividends of $1.00 per share on preferred stock and $0.06 per share on common stock.

Paid the cash dividends.

Journalize the entries to record the transactions.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Required:

a. Issued 70,000 shares of common stock at $25, receiving cash.

b. Issued 13,000 shares of preferred 2% stock at $69.

c. Purchased 42,000 shares of treasury common for $25 per share.

d. Sold 21,000 shares of treasury common for $28 per share.

e. Sold 14,000 shares of treasury common for $23 per share.

f. Declared cash dividends of $1.00 per share on preferred stock and $0.06 per share on common stock.

g. Paid the cash dividends.

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 1% Stock, $50 par (100,000 shares authorized, 75,100 shares issued) $3,755,000 Paid-In Capital in Excess of Par—Preferred Stock 165,220 Common Stock, $3 par (5,000,000 shares authorized, 1,690,000 shares issued) 5,070,000 Paid-In Capital in Excess of Par—Common Stock 1,014,000 Retained Earnings 30,836,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 454,700 shares of common stock at $8, receiving cash. Feb. 10 Issued 11,800 shares of preferred 1% stock at $61. Mar. 19 Purchased 46,500 shares of treasury common for $8 per share. May 16 Sold 20,700 shares of treasury common for $10 per share. Aug. 25 Sold 5,700 shares of treasury common for $7 per share. Dec. 6 Declared cash dividends of $0.50 per share on preferred stock and $0.10 per share on common stock. 31 Paid the cash dividends. Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 1% Stock, $50 par (100,000 shares authorized, 75,100 shares issued) $3,755,000 Paid-In Capital in Excess of Par—Preferred Stock 165,220 Common Stock, $3 par (5,000,000 shares authorized, 1,690,000 shares issued) 5,070,000 Paid-In Capital in Excess of Par—Common Stock 1,014,000 Retained Earnings 30,836,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 454,700 shares of common stock at $8, receiving cash. Feb. 10 Issued 11,800 shares of preferred 1% stock at $61. Mar. 19 Purchased 46,500 shares of treasury common for $8 per share. May 16 Sold 20,700 shares of treasury common for $10 per share. Aug. 25 Sold 5,700 shares of treasury common for $7 per share. Dec. 6 Declared cash dividends of $0.50 per share on preferred stock and $0.10 per share on common stock. 31 Paid the cash dividends.

It is the year 2021 and Pork Barrels, Inc., is considering construction of a new barrel plant in Spain. The forecasted cash flows in millions of euros are as follows:

The spot exchange rate is $1.27 = €1. The interest rate in the United States is 11%, and the euro interest rate is 8%. You can assume that pork barrel production is effectively risk-free.

1. b. What are the dollar cash flows from the project if the company hedges against exchange rate changes?

What are the dollar cash flows from the project if the company hedges against exchange rate changes? (Negative amounts should be indicated by minus sign. Enter your answers in millions. Do not round intermediate calculations. Round "Forward rate" to 3 decimal places and "Cash flow" to 2 decimal places.)