You are a senior member of management for a development and construction company where the original two owners wish to retire and sell the business. Along with several experienced co-workers, you are considering a buyout of the business. As part of your due diligence, you have performed some analysis of the historical financial statements and determined the following:

·         Audited financial statements indicate a net book value of $4,500,000.

·         The owners recently had the tangible assets appraised and the fair value of assets is $2,000,000 higher than audited book value. Part of the difference results from the owners having acquired several development sites over a period of years that are recorded in the audited financial statements at original cost.

·         A guideline public company recent price to earnings multiple for a comparable public company times weighted average income results in a business value of $9,000,000.

·         Using a discounted cash flow approach with a five-year projection period and terminal value results in a business value of $10,000,000.

You and your co-workers have offered $9,500,000 for the company. The owners will be paid consultants for one year following the purchase of the business so that there will be no loss of key employees.  

The owners are motivated to sell but negotiations are at an impasse. The owners insist that they be paid $11,500,000 - $9,500,000 offered plus the $2,000,000 incremental fair value of assets over book value. How do you respond to the counter-offer of the owners? Explain briefly the reason if you accept or reject the offer

In a construction business, an employee can work on at least one or many projects at the same time. And each project should have at least one employee or can have multiple employees working on it.

• Draw the entities, the relationship and the cardinalities for the above business rule.
• Identify what kind of relationship is established between the entities
• Don’t do anything if it’s a one-to-one or one-to-many relationship. But if it’s a many-to-many relationship then resolve it so that it could be implemented in a relational model. If it's a many-to-many relationship, show all relationships and cardinalities.

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 80,000 shares of common stock at $19, receiving cash.

Issued 18,000 shares of preferred 2% stock at $217.

Purchased 48,000 shares of treasury common for $20 per share.

Sold 24,000 shares of treasury common for $23 per share.

Sold 16,000 shares of treasury common for $18 per share.

Declared cash dividends of $4.00 per share on preferred stock and $0.06 per share on common stock.

Paid the cash dividends.

a. Issued 80,000 shares of common stock at $19, receiving cash.

b. Issued 18,000 shares of preferred 2% stock at $217.

c. Purchased 48,000 shares of treasury common for $20 per share.

d. Sold 24,000 shares of treasury common for $23 per share.

e. Sold 16,000 shares of treasury common for $18 per share.

f. Declared cash dividends of $4.00 per share on preferred stock and $0.06 per share on common stock.

g. Paid the cash dividends.

Titanium (Ti) is a strong, lightweight metal that is used in the construction of rockets, jet engines, and bicycles. it can be prepard by reacting TiCl4 with Mg metal at very high temperatures. The products are Ti(s) and MgCl2.

a) provide a balanced chemical reaction for the reaction described above.

b) how many grams of Ti metal can be produced from a reaction involving 3.54 * 10^4 g of TiCl4 and 6.53*10^3 g of Mg?

The bookkeeper of a construction company knew there were hundreds of transient workers on the payroll at any given time. She also knew that at any point in time many workers dropped off the payroll and many more joined. She also knew that no one was checking her work. She handled the payroll, used the owner’s signature stamp on checks, and hand delivered the checks the various job sites. The bookkeeper kept a handful of former employees on the payroll, both male and female. She even paid their union dues and payroll taxes. However, instead of delivering these checks to the job site, where of course the employees no worked, she endorsed the bank of the checks and deposited them into her bank account. She was friendly with one particular teller at the bank branch and used this teller exclusively to deposit the checks. Several people at her employer were curious as to her new executive automobile, new home and rumored house at the beach, which she passed off as the result of her husband’s large win at the casino. However, it took a prolonged illness and enforced absence from the office for a temporary bookkeeper to question why nonemployees were still on the payroll. She was found out.

1) Identify risks and/or red flags in this case that provided the opportunity for fraud.

2) Identify controls that needed to be put in place that might have mitigated this risk.

3) What is a way to transfer risk of employee theft to a third party?

The following selected accounts appear in the ledger of EJ 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:

The following selected accounts appear in the ledger of EJ 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.

Chart of Accounts

Journal

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

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JOURNAL

A construction company is considering acquiring a new earthmover. The purchase price is ​$110,000​, and an additional ​$25,000 is required to modify the equipment for special use by the company. The equipment falls into the MACRS​ seven-year classification​ (the tax​ life), and it will be sold after five years​ (the project​ life) for $50,000. The purchase of the earthmover will have no effect on​ revenues, but the machine is expected to save the firm $68,000 per year in​ before-tax operating​ costs, mainly labor. The​ firm's marginal tax rate is 25​%. Assume that the initial investment is to be financed by a bank loan at an interest rate of 10% payable annually. Determine the​ after-tax cash flows by using the generalized cash flow approach and the worth of the investment for this project if the​ firm's MARR is known to be 12%.

Following selected accounts appear in the ledger of parks construction incorporated at the beginning of the Current year, preferred 2% stock a $100 par there was a $100000 shares authorized and 80000 shares issued of 8 million dollars paid in capital in excess of power for preferred stock $440000, Common stock at $5 par 500000 shares all the rise to 400000 shares issued at 20 million dollars paid in capital in excess of par common stock at 2 million 280000 dollars retained earnings of a 115 million 400000 dollars during the year the corporation completed number of transactions affecting the stockholders equity they are summarized as follows part a issued 200000 shares of common stock at $12 receiving cash part be issued 8000 shares of preferred 2% stock at a $115 part C purchased a 175000 shares of Treasury common for $10 per share part D sold a 110000 shares of Treasury common for $14 per share part E sold 30000 shares of Treasury common for $8 per share part F declared cash dividends of $1.25 per share on preferred stock and 8 cents per share on common stock and part G paid the cash dividends journalize the entries to record the transactions