Questions
host, Inc., has no debt outstanding and a total market value of $320,000. Earnings before interest...

host, Inc., has no debt outstanding and a total market value of $320,000. Earnings before interest and taxes, EBIT, are projected to be $47,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 19 percent higher. If there is a recession, then EBIT will be 30 percent lower. The company is considering a $165,000 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,000 shares outstanding. The company has a tax rate of 25 percent, a market-to-book ratio of 1.0, and the stock price remains constant.

  

a-1.

Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b-2.

Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (

a-1. Recession EPS   
Normal EPS
Expansion EPS
a-2. Recession percentage change in EPS %
Expansion percentage change in EPS %
b-1. Recession EPS
Normal EPS
b-2. Expansion EPS
Recession percentage change in EPS %
Expansion percentage change in EPS %

In: Finance

- If this client was in a hospital setting for multiple days, what information could a...

- If this client was in a hospital setting for multiple days, what information could a nurse use to educate the client and what benefits would this provide for the Client? Question must be answered in paragraph form, no short answers can be accepted for the assignment.

"Case Study Mrs. S, a 45-year-old woman, came to your doctor’s office because she had a sore that would not heal on her leg. She is 5 ft 5 in. and weighs 200 lb (body mass index [BMI] = 33.5). Vital signs are temperature 98.6°F, pulse 70 beats per minute, respirations 16 breaths per minute, and blood pressure 160/95 mm Hg. Mrs. S reports a gradual increase in her weight since her third child was born 20 years ago. That baby weighed 12 lb. Two previous pregnancies produced infants weighing 10 and 11 lb. She has no known allergies. None of the children live at home. Mrs. S lives with her husband, who works as a construction laborer. She has been seasonally employed as a hotel maid at a nearby resort. Health insurance coverage is sporadic. They have a new insurance policy now. Mrs. S is the oldest of six children. Her father died of a heart attack at age 60. Her mother died of a stroke at age 62. Both parents reportedly “had a little sugar.” The sister who is closest to Mrs. S in age developed diabetes 3 years ago and is being treated with oral medication. Their youngest sister was diagnosed with type 1 diabetes at age 18 after an episode of mumps. Mrs. S reports a good appetite and a fluid intake of about 3 quarts per day. Her favorite beverage is iced tea with sugar and lemon. She does most of the grocery shopping and cooking. Mrs.S, hit her left ankle with the screen door about 2 months ago. The resulting sore has not healed but has gotten worse. Mrs. S knows that a sore that does not heal is a sign of cancer, which is why she sought medical attention. The ankle now has an open lesion 5 cm in diameter over the lateral ankle bone. The entire foot is swollen to twice the size of the right foot. The bandage over the sore had greenish-yellow drainage on it. A random blood glucose test 3 hours after her last meal shows a glucose level of 400 mg/dL. Her urine glucose was negative for ketones. The physician diagnoses Mrs. S with type 2 diabetes.

In: Nursing

20.An examination of the capital cost allowance schedule for 2020 provided the following opening balances for...

20.An examination of the capital cost allowance schedule for 2020 provided the following opening balances for the undepreciated capital cost for each class of EASI's assets:

Class 1

Bbuilding...........................................................

$188,383

Class 8

Office furniture and equipment.....................

60,000

Class 10

Trucks for transportation of goods

80,000

Class 12

Ssmall tools.......................................................

5,000

Class 13

Lleasehold improvements...............................

187,500

Class 44

Patent and rights limited life..........................

90,000

The following additional information was found in the 2020 fixed asset schedules working paper files.

A. The building which cost $997,426 in 1992 was sold for $150,000. It was the only building in Class 1 at the time of its sale. A new building was purchased (non used) in April 2020 for $750,000. Also, in February 2020 a lot adjacent to the new building, was purchased for $100,000 for use as a parking lot by employees and visitors. This lot was paved at a cost of $25,000. A fence was erected around an outside storage area near the new building at a cost of $40,000.

B New office furniture was purchased for $20,000. This purchase replaced old assets which were sold for $5,000. None of the old assets was sold for more than capital cost.

C Three small trucks purchased in 2015 for $12,000 each were traded in for three new trucks. Each new truck was priced at $15,000, but this was reduced by a trade-in credit of $2,500 for each old truck.

D. Some small tools were sold for a total of $7,000. All of these tools were sold at a price less than their capital cost.

E. Leasehold improvements had been made to a leased warehouse at a cost of $225,000 in October 2018. The remaining length of the lease in that year was six years with two successive renewal options of three years each. Further leasehold improvements were made to this warehouse in 2020 at a cost of $21,000.

F.During 2020, an unlimited life franchise was purchased for $48,000.

G.Accounting gains and losses on the above asset sales netted to nil.

Required:

Based on the foregoing information, Compute the income from business for tax purposes for Eldridge Asset Sales Inc. for its 2020 fiscal year.

  1. Your answer should incude the following six column

Item #

Description

Amount

Action(Add back/Deduct/No adjustment

Amount for adjustment

Reason for Adjustment

ITA Reference

  1. Follow the sequence of information given above 1 to 20.
  2. Show all calculations whether or not they seem relevant to the final answer.
  3. Provde CCA calculation

State your assumptions if any information is not adequate for your calculation

In: Accounting

Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1....

Presidio, Inc., produces one model of mountain bike. Partial information for the company follows:

Required:
1. Complete Presidio’s cost data table.
2. Calculate Presidio’s contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $620.
3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $620.

Complete Presidio’s cost data table. (Round your Cost per Unit answers to 2 decimal places.)

Bikes Produced and Sold 740 Units 890 Units 1,348 Units
Total costs
Variable costs $192,400 $231,400 $350,480
Fixed costs per year
Total costs $192,400 $231,400 $350,480
Cost per unit
Variable cost per unit $260.00 $260.00 $260.00
Fixed cost per unit 284.00
Total cost per unit $260.00 $544.00 $260.00

Calculate Presidio’s contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $620. (Round your Contribution Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.))

740 Units 890 Units 1,348 Units
Total Contribution Margin
Contribution Margin Ratio % % %

Calculate net operating income (loss) at each of the sales levels assuming a sales price of $620. (Round your answers to the nearest whole dollar amount.)

740 Units 890 Units 1,348 Units
Net Operating Income

In: Accounting

1. An important application of regression analysis in accounting is in the estimation of cost. By...

1. An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation.

Production Volume (units) Total Cost ($)
400 5,000
450 6,000
550 6,400
600 6,900
700 7,400
750 8,000
  1. Compute b1 and b0 (to 1 decimal).
    b1
    b0

    Complete the estimated regression equation (to 1 decimal).
    =  +  x
  2. What is the variable cost per unit produced (to 1 decimal)?
    $
  3. Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1.
    r2 =

    What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)?
    %
  4. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?
    $

2.

Consider the following data for a dependent variable y and two independent variables, x1and x2; for these data SST = 15,029.6, and SSR = 13,917.

x 1 x 2 y
30 12   95
46 10 109
24 18 112
50 17 179
40   5   95
52 19 175
74   7 171
37 13 118
59 14 143
77 16 211

Round your answers to three decimal places.

a. Compute R2.

b. Compute Ra2.

In: Statistics and Probability

PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2] Hermosa, Inc., produces one...

PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2]

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:

    
Number of bikes produced and sold 520 820 1,000
Total costs
Variable costs $ 123,240 $ ? $ ?
Fixed costs per year ? ? ?
Total costs ? ? ?
Cost per unit
Variable cost per unit ? ? ?
Fixed cost per unit ? ? ?
Total cost per unit ? $ 524.75 ?

Required:
1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.)

Number of bikes produced and sold 520 Units 820 units 1000 units
total costs
Variable Costs $123,240 $194,496 $237,190
Fixed Costs per year
total costs $400,039 $471,295 $513,989
Cost per unit
Variable cost per unit
Fixed cost per unit
total cost per unit $796.50 $524.75 $513.99

  
2. Calculate Hermosa’s contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $800. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.))

520 Units 820 Units 1000 units
Contribution margin ratio % % %
total contribution margin


4. Calculate Hermosa’s break-even point in units and sales revenue. (Round your answers to the nearest whole number.)

Break-even units Bokes
Break-even sales revenue

In: Accounting

The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying...

The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed.

Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation:

Let Dj = annual demand for item j
Cj = unit cost of item j
Sj = cost per order placed for item j
i = inventory carrying charge as a percentage of the cost per unit
W = the maximum amount of space available for all goods
wj = space required for item j

The decision variables are Qj, the amount of item j to order. The model is:

In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (Dj/Qj is the number of orders), and the last term is the annual inventory holding cost (Qj/2 is the average amount of inventory).

Set up a spreadsheet model for the following data:

Item 1 Item 2 Item 3
Annual Demand 2,000 2,000 1,500
Item Cost ($) 100 50 80
Order Cost ($) 150 135 125
Space Required (sq. feet) 50 25 40

W = 5,000

i = 0.2

Solve the problem using Excel Solver. Hint: You will need to start with decision variable values that are greater than 0 for Solver to find a solution.

If required, round your answers to two decimal places.

Optimal Solution:

Q1 = _______

Q2 = _______

Q3 = _______

If required, round your answer to the nearest dollar. Do not round intermediate calculations.

Total cost = $________

In: Economics

The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying...

The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed.

Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation:

Let Dj = annual demand for item j
Cj = unit cost of item j
Sj = cost per order placed for item j
i = inventory carrying charge as a percentage of the cost per unit
W = the maximum amount of space available for all goods
wj = space required for item j

The decision variables are Qj, the amount of item j to order. The model is:

In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (Dj/Qj is the number of orders), and the last term is the annual inventory holding cost (Qj/2 is the average amount of inventory).

Set up a spreadsheet model for the following data:

Item 1 Item 2 Item 3
Annual Demand 2,500 2,500 1,500
Item Cost ($) 100 50 80
Order Cost ($) 165 145 125
Space Required (sq. feet) 50 25 40

W = $21,000

i = 0.3

Solve the problem using Excel Solver. Hint: You will need to start with decision variable values that are greater than 0 for Solver to find a solution.

If required, round your answers to two decimal places.

Optimal Solution:

Q1 =  

Q2 =  

Q3 =  

If required, round your answer to the nearest dollar. Do not round intermediate calculations.

Total cost = $

In: Operations Management

The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying...

The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed.

Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation:

Let Dj = annual demand for item j
Cj = unit cost of item j
Sj = cost per order placed for item j
i = inventory carrying charge as a percentage of the cost per unit
W = the maximum amount of space available for all goods
wj = space required for item j

The decision variables are Qj, the amount of item j to order. The model is:

In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (Dj/Qj is the number of orders), and the last term is the annual inventory holding cost (Qj/2 is the average amount of inventory).

Set up a spreadsheet model for the following data:

Item 1 Item 2 Item 3
Annual Demand 2,500 2,500 1,500
Item Cost ($) 100 50 80
Order Cost ($) 165 145 125
Space Required (sq. feet) 50 25 40

W = $21,000

i = 0.3

Solve the problem using Excel Solver. Hint: You will need to start with decision variable values that are greater than 0 for Solver to find a solution.

If required, round your answers to two decimal places.

Optimal Solution:

Q1 =  

Q2 =  

Q3 =  

If required, round your answer to the nearest dollar. Do not round intermediate calculations.

Total cost = $

In: Operations Management

#1-Physical Units Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene,...

#1-Physical Units Method

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

Direct materials $73,968
Direct labor 36,296
Overhead 22,612

At the split-off point, a batch yields 1,135 barlon, 2,993 selene, 2,580 plicene, and 3,612 corsol. All products are sold at the split-off point: barlon sells for $12 per unit, selene sells for $19 per unit, plicene sells for $27 per unit, and corsol sells for $37 per unit.

Required:

1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Note: The total of the allocated cost does not equal to the one provided in the question data due to rounding error.

Allocated Joint Cost
Barlon $______
Selene _______
Plicene _______
Corsol ________
Total $132,876

2. Suppose that the products are weighted as shown below:

Barlon 1.4
Selene 2.2
Plicene 1.5
Corsol 2.6

Allocate the joint costs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.

Allocated Joint Cost
Barlon $______
Selene _______
Plicene _______
Corsol _______
Total $132,876

__________________________________________________________________________________________________________________________

#2-Sales-Value-at-Split-off Method

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

Direct materials $69,000
Direct labor 34,000
Overhead 27,000

At the split-off point, a batch yields 1,700 barlon, 2,300 selene, 2,200 plicene, and 3,300 corsol. All products are sold at the split-off point: barlon sells for $18 per unit, selene sells for $22 per unit, plicene sells for $29 per unit, and corsol sells for $36 per unit.

Required:

Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.

Allocated Joint Cost
Barlon $_______________
Selene ______________
Plicene _____________
Corsol ____________
Total $______________

(Note: The total of the allocated cost may not equal actual total costs to due to rounding.)

In: Accounting