After earning an MBA, a student begins working on an $80,000 per year job on 9/1/18. She expects to receive a 5 percent raise each year until she retires on 9/1/48. If the cost of capital (i.e. interest rate she uses to discount future earnings to current dollars) is 8% per year and she is paid monthly, determine the total present value of her before tax earnings. Assume she is paid at the end of each month and each annual raise takes effect on Sept 1 each year. (answer is $1,521,144,67) In Excel functions

This is all the instruction you need for this assignment. For LP04.2 paper, you will be demonstrating competence in your MBA in accounting field of study.

You must complete the assignment for your emphasis area in order to earn points for this assignment. Your paper must be at least 3 pages and include an introduction, the body of the paper, a conclusion and a reference page. In the body of your paper, you should

Discuss the effectiveness of delivering strategy in your field of accounting study and what was that strategy

Explore the results of each accounting decision round that strategy

How’s your accounting study go by a framework to implement new and innovative systems or practices?

A Company sells two types of lawn mower – the fly-mo and the standard. The selling price of the Fly-mo is $188 and variable costs of $152.80. The Standard sells for $180 with the same variable cost.

Fixed costs are $255,840. The company sells the lawn mowers in equal proportions (i.e. in the same ratio).

1. What is break-even point in units (number of lawn mowers)?

2. What is break-even point in sales (in US$)?

3. Create a contribution income statement for break-even point.

Looking at the various ways to protect assets in a business, choose which policy/procedure is the most important for your work and tell us why.

2. Have you ever been a customer and observed a situation where the company was not protecting it's assets? or an employee and your company overlooks asset protection? For example, inventory is not protected because there is no alarm for big ticket items at the main doors. Be specific on what needs to be done to correct the situation and why you find it a violation of asset protection.

1.) Company Zeta bought new office furniture in the year 2000. The purchase cost was 62426 dollars and in addition it had to spend 14941 dollars for installation. The furniture has been in use since April 21st, 2000. Zeta forecasted that in 2015 the office furniture would have a net salvage value of $1000. Using the US Accelerated Depreciation Schedule, estimate the value of depreciation recorded in the accounting books in the year 2004 if the company decided to sell the furniture on June 5th (of 2004). (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)

ANSWER: 3454.44

2.) Company Omega bought new petroleum refining equipment in the year 2000. The purchase cost was 174324 dollars and in addition it had to spend 14582 dollars for installation. The refining equipment has been in use since February 1st, 2000. Omega forecasted that in 2030 the equipment would have a net salvage value of $10,000. Using the US Straight Line Depreciation Schedule, estimate the value of depreciation recorded in the accounting books in the year 2004 if the company decided to sell the equipment on August 5th (of 2004). (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)

ANSWER: 9445.3

On July 1, 2019, the first day of its 2020 fiscal year, the Town of Bear Creek issued at par $4,200,000 of 8 percent term bonds to renovate a historic wing of its main administrative building. The bonds mature in five years on July 1, 2024. Interest is payable semiannually on January 1 and July 1.

As illustrated in the table below, a sinking fund is to be established with equal semiannual additions made on June 30 and December 31. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly before the due dates. Investment earnings are added to the investment principal.

Required

1.      a-1. Prepare journal entries in the debt service fund for the following: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

On July 1, 2019, record the budget for the fiscal year ended June 30, 2020. Include all inter-fund transfers to be received from the General Fund during the year. An appropriation should be provided only for the interest payment due on January 1, 2020.

A, Term Bond Debt Service Fund:

On December 28. 2019, the General Fund transferred $517,882 to the debt service fund. The addition to the sinking fund was immediately invested in 8 percent certificates of deposit.

B1. Tern Bond Debt Service Fund: Record the transfer fro the general fund to the debt service fund

B2. Record the investment in the certificates of deposit.

On December 28, 2019, the city issued checks to bondholders for the interest payment due on January 1, 2020.

C. Term Bond Debt Service Fund:

On June 27, 2020, the General Fund transferred $517, 822 to the debt service fund. The addition for the sinking fund was invested immediately in 8 percent certificates of deposit.

D1. Term Bond Service Fund: Record the transfer from the general fund to the debt service fund.

D2. Record the investment in the certificates of deposit

Actual interest earned on sinking fund investments at year end (june 30, 2020) was the same as the amount budgeted in the table. This interest adds to the sinking fund balance.

E. Term Bond Service Fund

Need a solution on three topics below. 

1. If you were evaluating an investment opportunity, which technique would you use and why?

2. When evaluating investments, you can get data from engineering, marketing and sometimes accounting. Do you think any of these organizations have internal biases? If so, as a member of the finance department, how would you deal with them?

3. You have just discovered that your boss favors payback in evaluating investments. Should you try to talk him out of it or should you go along with his/her desires?

4. You are comptroller for your company. The CEO is a savvy individual with great instincts for the business. She strongly favors an investment that is only marginally acceptable at best. She has asked you to put together justification for it. What will you do?

5. Last year your company financed its investments by selling shares of common stock. This year the plan is to use debt. The after tax cost of debt is 5%, the cost of equity is 12% and the weighted average cost of capital is 9.5%. The first investment for this year is an expansion project. What cost of capital will you use and why?

6. The weighted average cost of capital can consist of debt, preferred stock and equity. Which of these sources is the most expensive and the least expensive and why?

7. Young companies usually finance their assets with equity. Why?

8. Equity financing can come from external or internal sources. Which of these is the least expensive and why?

You are the appointed Supply Chain Manager for a company that manufactures and sells its products to retailers and to end consumers. The company uses its own trucks to deliver to retailers and UPS for its online orders to deliver to end consumers.

Apply your understanding of the 5 components of Supply Chain by explaining to me as your CEO how are you going to successfully plan, source material & equipment, manufacture, deliver and handle returned items. Give examples and elaborate as necessary.

Remember the 5 basic components are:

1. Planning

2. Sourcing

3. Making

4. Delivering

5. Returning

Note to students: the exercise is meant to be individual and unique to every student. That is why the assignment is not limited to a specific brand or product.

Grading Criteria - Rubric

This assignment will be graded out of 15 marks as follows:

Presentation 3 marks

Cover page, organization, neatness

Word processed, spelling, grammar, medium, quality of in class presentation, clarity, interest, understanding.

Note: Proper citation of references is required (MLA or APA format)

It is your responsibility to familiarize yourself with the proper procedure for maintaining academic honesty. You can also seek assistance from Student Services in understanding the policy and procedures for Academic Honesty.

Content 6 marks

Demonstrated understanding of the subject matter (i.e.. not simply cutting and pasting content from websites)

Analysis 6 marks

Logic, methodology, originality, creativity

Crane Company has had 4 years of record earnings. Due to this success, the market price of its 385,000 shares of $2 par value common stock has increased from $13 per share to $53. During this period, paid-in capital remained the same at $2,310,000. Retained earnings increased from $1,732,500 to $11,550,000. CEO Don Ames is considering either (1) a 15% stock dividend or (2) a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders’ equity, and (c) par value per share.

(a)

(b)

(c)