M.D. is 69 years old, visits her GP for a repeat prescription of perindopril arginine 2.5 mg. She was diagnosed with heart failure and heart disease 1 year ago (LVEF < 40%) after a myocardial infarction and was started on carvedilol 12.5 mg. M.D. moved into a retirement village 1 year ago after the death of her husband. She is an active member of the walking group, but over the last 3 weeks she has had increased shortness of breath and fatigue after a steady 20 minute walk at the park. Since then she has reduced her level of physical activity and has also noticed swelling in her ankles despite her usual fluid tablets. She tells you that she has been having packaged soups instead of regular meals, because she finds it convenient, and is drinking more water than previously recommended (< 1.5 L/day was recommended after her heart failure diagnosis). Her medical history includes dyslipidemia, osteoarthritis, stable ischemic heart disease, and hypertension. Her current medicines (all once daily) are carvedilol 12.5 mg, aspirin 81 mg, atorvastatin 20 mg, celecoxib 200 mg, controlled-release isosorbide mononitrate 60 mg and furosemide 20 mg. M.D. currently weighs 70 kg (up by 4 kg from last visit 6 months ago) and her blood pressure is 140/82 mmHg. Serum biochemistry (urea, creatinine and electrolytes) was normal when tested 6 weeks ago. LDL was 100 and HDL was 52. Her estimated creatinine clearance was 60 mL/min.

evaluate legal and ethical concerns that should be considered when using this approach (Team -based)

Problem 12-26 Simple Rate of Return; Payback [LO12-1, LO12-6]

Sharkey’s Fun Center contains a number of electronic games as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water slide on one portion of his property. Mr. Sharkey gathered the following information about the slide:

1. Water slide equipment could be purchased and installed at a cost of $360,000. According to the manufacturer, the slide would be usable for 12 years after which it would have no salvage value.
2. Mr. Sharkey would use straight-line depreciation on the slide equipment.
3. To make room for the water slide, several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $97,500 to an amusement park in a nearby city.
4. Mr. Sharkey concluded that about 50,000 more people would use the water slide each year than have been using the rides. The admission price would be $3.90 per person (the same price the Fun Center has been charging for the old rides).
5. Based on experience at other water slides, Mr. Sharkey estimates that annual incremental operating expenses for the slide would be: salaries, $84,000; insurance, $4,700; utilities, $13,500; and maintenance, $10,300.

Required:

1. Prepare an income statement showing the expected net operating income each year from the water slide.

2-a. Compute the simple rate of return expected from the water slide.

2-b. Based on the above computation, would the water slide be constructed if Mr. Sharkey requires a simple rate of return of at least 13% on all investments?

3-a. Compute the payback period for the water slide.

3-b. If Mr. Sharkey accepts any project with a payback period of five years or less, would the water slide be constructed?

*I am seeking an answer to Question 1 B.*

ABC company is considering producing a new range of smartphones that will require it to build a

new factory. Feasibility studies have been done on the factory which cost $5 million. The studies

have found the following:

1. The factory will cost $25 million and will have a useful life of 20 years.

2. The land where the factory will go is currently used as a carpark for workers and it is assumed that the company will have to pay $200000 per year for their workers to park in a nearby carpark.

3. The factory will be depreciated on a straight line basis and will have a salvage value of $0 but it is believed that most of it can be sold for scrap after 20 years for $50000.

4. Due to the nature of the business they are in, they will have to perform some environmental tests to make sure that some of the chemicals they are using are not entering the ground water around the factory. These tests will be performed every 5 years and cost $625000.

5. Through the building of this factory and the selling of the phones it produces, it’s revenue will increase by $5 million in year 1 and remain at this level for the operational life of the factory.

6. The extra costs that the company accrues per year due to the project are $435000 for labour, $50000 for overhead like power and water bills and marketing costs for the new line of phones will be $500000 per year but will decrease by $15000 per year as the phone gains greater penetration.

7. The company’s current cost of capital is 8% per year.

8. The tax rate is 30%.

9. The project requires an initial investment in working capital of $1000000 that is returned

   in year 20.

Use the above information to answer the following (IN EXCEL):

A. Calculate the free cash flows that come from this project for the 20 years it is operational. ​

B. Calculate the NPV, IRR and payback period of the project. Should they go ahead with the project?

1. Alicia is the owner-operator of Cool Beans, a local coffee shop. For the past year, Cool Beans sold 215,000 drinks at an average price of $2.95 per serving. Her average variable cost per serving was $1.15. Currently, she has been using local TV and newspapers to generate interest and awareness at a cost of $171,000 per year. She recently contacted Brushfire Social Media and they estimated they could reach the same number of people in her community with a social media budget at half the cost, though it would require an additional one-time investment of $14,000 in their website and social platforms. As an additional option, Brushfire suggested a separate promotional campaign that would offer a $1 discount to any person who likes their social media page. Brushfire estimates that Cool Beans would sell an additional 5,900 cups with this discount and this new campaign would cost $2,500.

1. What is the Marketing ROI for the Brushfire website and social media plan compared to their current approach? ___ %

2. SleepItOff Properties is a West Coast company that owns and operates several hotel chains. Here is their partially completed income statement for the most recent fiscal year. Matt Tress, a summer intern for the finance team was asked to calculate some basic performance metrics as part of his training. He also was told that the company had $15 million in cash and $206 million of other assets. For Year Ending Dec 31, 2013 $Mill Total Revenue $88 Cost of Revenue $31 Gross Profit ? General, Selling and Admin $20 Depreciation $10 Operating Income or Loss ? Interest Expense $15 Pre-Tax Income ? Income Taxes ? Net Income ? If SleepItOff's Tax Rate is 30%

2. What is SleepItOff's Net Income?

Sharkey’s Fun Center contains a number of electronic games as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water slide on one portion of his property. Mr. Sharkey gathered the following information about the slide:

1. Water slide equipment could be purchased and installed at a cost of $330,000. According to the manufacturer, the slide would be usable for 12 years after which it would have no salvage value.
2. Mr. Sharkey would use straight-line depreciation on the slide equipment.
3. To make room for the water slide, several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $92,000 to an amusement park in a nearby city.
4. Mr. Sharkey concluded that about 50,000 more people would use the water slide each year than have been using the rides. The admission price would be $3.70 per person (the same price the Fun Center has been charging for the old rides).
5. Based on experience at other water slides, Mr. Sharkey estimates that annual incremental operating expenses for the slide would be: salaries, $82,000; insurance, $4,500; utilities, $13,300; and maintenance, $10,100.

Required:

1. Prepare an income statement showing the expected net operating income each year from the water slide.

2-a. Compute the simple rate of return expected from the water slide.

2-b. Based on the above computation, would the water slide be constructed if Mr. Sharkey requires a simple rate of return of at least 14% on all investments?

3-a. Compute the payback period for the water slide.

3-b. If Mr. Sharkey accepts any project with a payback period of five years or less, would the water slide be constructed?

1. Problem 10-07 (Algorithmic)

   Aggie Power Generation supplies electrical power to residential customers for many U.S. cities. Its main power generation plants are located in Los Angeles, Tulsa, and Seattle. The following table shows Aggie Power Generation's major residential markets, the annual demand in each market (in megawatts or MWs), and the cost to supply electricity to each market from each power generation plant (prices are in $/MW).

   Distribution Costs
   City	Los Angeles	Tulsa	Seattle	Demand (MWs)
   Seattle	$364.25	$601.75	$67.38	958.00
   Portland	$367.25	$604.75	$189.13	842.25
   San Francisco	$166.13	$463.00	$284.88	2363.00
   Boise	$341.25	$460.00	$281.88	578.75
   Reno	$241.50	$479.00	$360.25	954.00
   Bozeman	$428.63	$428.63	$309.88	506.15
   Laramie	$367.25	$426.63	$367.25	1198.50
   Park City	$375.25	$375.25	$494.00	622.25
   Flagstaff	$238.13	$535.00	$653.75	1178.19
   Durango	$363.25	$303.88	$600.75	1472.25

   1. If there are no restrictions on the amount of power that can be supplied by any of the power plants, what is the optimal solution to this problem? Which cities should be supplied by which power plants? What is the total annual power distribution cost for this solution? If required, round your answers to two decimal places.
      
      The optimal solution is to produce  MWs in Los Angeles,  MWs in Tulsa, and  MWs in Seattle. The total distribution cost of this solution is $  .
      
   2. If at most 4000 MWs of power can be supplied by any one of the power plants, what is the optimal solution? What is the annual increase in power distribution cost that results from adding these constraints to the original formulation? If required, round your answers to two decimal places.
      
      The optimal solution is to produce  MWs in Los Angeles,  MWs in Tulsa, and  MWs in Seattle. The total distribution cost of this solution is $  . The increase in cost associated with the additional constraints is $  .

At the beginning of year X1, a company received a 20% grant towards the cost of a new machine of RM20 million. The asset has an expected life of five with no residual value. Required: Show the extract of the statement of financial position for the years ended 31 December X1 and X2 using both the deferred income and writing off against asset methods. Ceria Bhd obtained a significant amount of grant to the government to build hotels to keep up the demand for rooms generated by the Visit Malaysia programmes. The grant received was RM50 million with the understanding that the hotel built should not cost less than RM400 million. Required: Discuss how the above scenario will be treated in the financial statements of Ceria Bhd. Mahmud acquired a plant at a gross cost of RM1.6 million on 1 October X2. The plant has an estimated life of ten years with its residual value equals to 10% of its gross cost. Mahmud uses a straight line depreciation method. At the time of its purchase,Mahmud received a government grant of 30% of its cost price. One of the terms of the grant is that if the company retains the plant for five years or more, then there is no repayment liability. If the company sells the plant within one year it has to repay 75% of the cost. This amount decreases by 20% in succeeding years. Ceria has no intention of disposing of the plant within five years. Its policy for capital based government grants is to treat them as deferred credit and and release them to income over the life of the asset to which they relate. Required: Discuss whether the company’s policy for treatment of government grant meets definition of a liability MASB Conceptual Framework. Prepare the extract of Ceria’s financial statements for the year ended 30 March X3 in respect of the plant and the grant. (i) applying the company's policy (ii) in compliance with the definition of liability in the Conceptual Framework.

Problem 12-26 Simple Rate of Return; Payback [LO12-1, LO12-6]

Sharkey’s Fun Center contains a number of electronic games as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water slide on one portion of his property. Mr. Sharkey gathered the following information about the slide:

1. Water slide equipment could be purchased and installed at a cost of $540,000. According to the manufacturer, the slide would be usable for 12 years after which it would have no salvage value.
2. Mr. Sharkey would use straight-line depreciation on the slide equipment.
3. To make room for the water slide, several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $85,000 to an amusement park in a nearby city.
4. Mr. Sharkey concluded that about 50,000 more people would use the water slide each year than have been using the rides. The admission price would be $5.10 per person (the same price the Fun Center has been charging for the old rides).
5. Based on experience at other water slides, Mr. Sharkey estimates that annual incremental operating expenses for the slide would be: salaries, $96,000; insurance, $5,900; utilities, $14,700; and maintenance, $11,500.

Required:

1. Prepare an income statement showing the expected net operating income each year from the water slide.

2-a. Compute the simple rate of return expected from the water slide.

2-b. Based on the above computation, would the water slide be constructed if Mr. Sharkey requires a simple rate of return of at least 14% on all investments?

3. If Mr. Sharkey accepts any project with a payback period of five years or less, would the water slide be constructed?

1. Mohammad Hasan is a partner in a Big 4 accounting firm, he hired accounting students from your University to conduct the audit of Bank of Palestine. When the audit was done he received the audit report and signed it. The report was issued one day later.

2. Your mother in law is a majority shareholder in Jawwal, you are hired by the company to conduct an audit you conducted the audit and issued your report.

3. Ahmad CPA and Ali a CMA formed a Partnership to provide Audit services. The company was named the nice Audit CPA firm.

4. Samir a CPA advertised has practice on web siting several prominent clients of his firm, he also included links to the client’s websites and quotes from his happy clients.

5. Hania a CPA was talking with her husband about her work she mentioned some client’s information to prove her point.

6. Hanin a CPA in a local accounting Firm when one of her clients did not pay his bills she informed them that she will not give them their records and supporting documents until they pay.

7. Adel a CPA to supplements his income by worked as a bartender at the Movenpick hotel.

8. Majed while auditing the Palestinian Leasing Company discovered a violation IFRS 16. The company indicated to him that this violation is not Material and that following IFRS 16 will make the financial statements misleading accordingly he issued a standard report.

9. Majeda audited a company for three consecutive years without receiving any fees. Required For each case indicate the violation of the code of ethics. Explain your answer by also indicating the standard violated. In case there is no violation indicate so with your reason for your answer

Case 1 airbnb, inc in 2017 mcgraw hill education connect

How would you illustrate and compare the business models for Airbnb, large hotels chains such as Marriott and Hilton, and bed & breakfast operators?

Select “true” for those statements that are accurate and choose “false” for those that are not.

1. Airbnb has a unique customer value proposition in its use of technology, shorter, more intimate stays, varying and different locales, and cheaper and unique accommodations.
     (Click to select)   True   False  
   
2. A chain hotel/motel’s customer value proposition is similar to that of Airbnb by its use of technology, unique accommodations, and varying prices.  
     (Click to select)   True   False  
   
3. A bed & breakfast’s profit formula is based on renting rooms and overall occupancy, the cost structure associated with operating brick and mortar locations, and possibly wages if it is large enough to need staff.
     (Click to select)   True   False  
   
4. Airbnb’s profit formula is based on transaction fees charged to users, the cost structure associated with developing and updating software and technology, marketing, and wages for engineers, professional management, and staff.
     (Click to select)   True   False  
   
5. A bed & breakfast is owned by a sole proprietor; their profit margin is not impacted if they do not rent rooms or have overall occupancy.
     (Click to select)   True   False  
   
6. Chain hotels/motels’ profit margin is dependent on generating sufficient revenues across multiple locations to cover fixed and variable costs globally. Profitable locations may be used to offset losses in unprofitable locations.
     (Click to select)   True   False  
   
7. Airbnb’s profit margin is contingent upon the fixed costs associated with operating hotels and bed & breakfasts.
     (Click to select)   True   False  
   
8. A bed & breakfast’s profit margin is dependent on generating revenues sufficient to cover fixed and variable costs.
     (Click to select)   True   False

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