Gross Profit Percentage
The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per share.)

Calculate the company's gross profit percentage for 2016.

Round answer to one decimal place. (Ex.: 0.2345 = 23.5%)

Answer%

Compare the result to the industry average.

Hi-Tech Instruments' ratio is higher than the industry average.

Hi-Tech Instruments' ratio is lower than the industry average.

Mercedes, Co. has the following quarterly financial information. 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Sales Revenue $ 925,800 $ 935,300 $ 933,600 $ 941,400 Cost of Goods Sold 305,700 318,300 317,900 323,100 Operating Expenses 248,900 260,300 258,500 262,600 Interest Expense 4,200 4,200 4,200 4,100 Income Tax Expense 85,500 88,400 88,400 90,900 Average Number of Common Shares Outstanding 799,030 794,064 795,670 809,000 Stock price when Q4 EPS released $ 24 Required: Calculate the gross profit percentage for each quarter. Calculate the net profit margin for each quarter. Calculate the EPS for each quarter. Calculate the Price/Earnings ratio at the end of the year.

• Required A
• Required B
• Required C
• Required D

Calculate the gross profit percentage for each quarter. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

• Required A
• Required B
• Required C
• Required D

Calculate the net profit margin for each quarter. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

• Required A
• Required B
• Required C
• Required D

Calculate the EPS for each quarter. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

• Required A
• Required B
• Required C
• Required D

Calculate the Price/Earnings ratio at the end of the year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

If your answer does not match the answers given below, check with the instructor. There is always the chance, albeit small, that your answer is correct and there is a typo below.)

1.         Bank A offers to lend you money at 10 percent compounded monthly, Bank B at 11 percent compounded quarterly, and Bank C at 12 percent compounded annually. Calculate the effective rates and state which bank offers the lowest cost of borrowed capital.

2.         What are the interest payments on a $200 loan if the contractual rate is 12%, the loan will be paid back in four uniform interest and principal payments at the end of the next four years, and the remaining balance method of calculating interest will be used (fully amortized)? What is the actuarial, annual percentage, and the effective interest rate? (AIR, APR, i_e =12%)

3.         What are the interest payments on a $1,000 loan if the contractual rate is 12%, the loan will be paid back in four uniform principal payments at the end of the next four years, and the remaining balance method of calculating interest will be used? What is the actuarial, annual percentage, and the effective interest rate? (AIR, APR, i_e =12%)

4.         A farmer needs to borrow $1,000. The local PCA will make a 2‑year loan fully amortized at 10% (annual rate) with quarterly payments. A $10 loan fee and stock purchase is required. The borrower stock requirement is the lesser of $1,000 or 2% of loan principal. Assume that sufficient money is borrowed to cover the $1,000, the fee and the stock requirement. Also assume that the stock requirement is returned to borrower when the loan is paid off and the last debt payment can be reduced by the stock amount. How much money needs to be borrowed? What is the dollar amount of the stock requirement? What is the quarterly loan payment? What is the actuarial, annual percentage, and the effective interest rate? (AIR =2.83%, APR = 11.32%, i_e = 11.81%)

Do an internet search on public funding of stadiums/sports facilities (i.e., the use of taxpayer monies to pay for the construction of stadiums/sports facilities for professional teams) Pay particular attention to research presented by mainstream business news organizations such as: MSNBC and CNBC, as well as any economic think tanks such as the American Enterprise Institute, Brookings Institution, Cato Institute, or the Center for Economic and Policy Research. Links to several economic think tanks can be found at Economics Think Tanks.

Conduct an objective marginal analysis as covered by the text; objectively weigh marginal benefits and marginal costs of the use of taxpayer monies to pay for the construction of stadiums/sports facilities for professional teams. Determine whether or not the if the marginal benefits outweigh the marginal costs.

Please format your response as per below:

1. Identified marginal benefits.

2. Identified marginal costs – what opportunity costs are generated by the decision?

3. Do the marginal benefits outweigh the costs? Why or why not?

Note that this is a societal level marginal analysis so your costs and benefits must be societal level. Also, marginal costs are the opportunity costs which you need to identify.

John John a 6-year-old child is fond of playing outside their house during weekends. One day he tried to construct a makeshift house for their “bahay-bahayan” with his younger sister. During the construction, he hit his thumb holding the nail while using the hammer but with no reaction. There are also some scratches in his leg and arm which he got from the bushes around their house looking for materials he can use in the construction of his makeshift house. As he continued pounding the nail, he suddenly shouted and cried with the last strike of his hammer, and released all what he was holding

1. What system is affected?

2. Trace the sequence of events from the time he hit his thumb to the time he shouted and cried based on your knowledge about Nervous System.

3. When he hit his thumb, his hammer fell almost simultaneously with his removal of his hand from his hold of the nail he was holding. What is the reason behind

4. Explain the function of the Calcium in this situation.  

King Ltd enters into a fixed price contract for $18 000 000 to build a train station for Hunter Ltd. It will take 3 years to build the station. The project is expected to be completed by the end of 2020. King Ltd’s estimate of contract costs is $16 000 000 at the commencement of construction. However, the expected costs to complete a construction project can change throughout the project. The following data relates to the project: 2018 2019 2020 Progress billing to date 4 000 000 12 000 000 18 000 000 Cash collection to date 3 500 000 11 500 000 18 000 000 Costs for the year 4 000 000 8 500 000 4 000 000 Costs incurred to date 4 000 000 12 500 000 16 500 000 Estimated costs to complete 12 000 000 4 000 000 — What is the gross profit to be recognised by King Ltd at the end of 2019? a. 500 000 b. 636 363 c. 1 136 363 d. 1 015 152

interest During Construction

Zimmer Company is constructing a production complex that qualifies for interest capitalization. The following information is available:

Capitalization period: January 1, 2016, to June 30, 2017

Expenditures on project:

Amounts borrowed and outstanding:
   $1.5 million borrowed at 10%, specifically for the project
   $7 million borrowed on July 1, 2015, at 12%
   $17 million borrowed on January 1, 2011, at 6%

Required:

Note: Round all final numeric answers to the nearest dollar.

Compute the amount of interest costs capitalized each year.

If it is assumed that the production complex has an estimated life of 25 years and a residual value of $0, compute the straight-line depreciation in 2017.

$

Since GAAP requires accrual accounting, if a company capitalizes interest during the construction period it will report income than if it had not capitalized interest. In future periods, the same company will report income than if it had not capitalized interest.

On December 31, 2016, Flint Inc. borrowed $3,540,000 at 13% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: March 1, $424,800; June 1, $708,000; July 1, $1,770,000; December 1, $1,770,000. The building was completed in February 2018. Additional information is provided as follows.

Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building.

Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

December 31, 2017   

Buildings

Interest Expense

Cash

17. When considering a loan, what is the lender looking for as it relates to the sponsorship?

1. Experience in ownership/management of commercial properties
2. Conservative levels of DSCR and LTV throughout the existing portfolio of properties owned by the borrower
3. Good quality credit profile
4. All of the above

18. Once the term sheet is signed and the process leading up to the closing of the loan begins, which third party report takes the longest to prepare and therefore ordered first by the lender?

1. Environmental and Engineering
2. Appraisal
3. Zoning
4. None of the above

19. A developer purchases a piece of land on which (s)he plans to build a 30-unit multifamily building with 4 retail spaces on the ground floor. What type of loan is (s)he most likely to get for the construction period?

1. Short term construction (bridge) floating rate loan
2. 10-year fixed rate loan with a 30-year amortization schedule
3. 5-year fixed rate first mortgage
4. None of the above

20. What are the main points to look for in the term sheet?

1. Loan amount and maximum LTV
2. Interest rate, loan term and prepayment penalty
3. Borrower’s experience qualification requirements
4. a and b
5. All of the above

Can you please solve this problem. The correct answer that should be found is below. Thank You

Early in 2015, Logan Corporation engaged Reese, Inc. to design and construct a complete modernization of Logan's manufacturing facility. Construction was begun on January 1, 2015 and was completed on December 31, 2015. Logan made the following payments to Reese, Inc. during 2015:

In order to help finance the construction, Logan issued $2,000,000 of 10-year, 9% bonds payable, issued at par on January 2, 2015, with interest payable annually on December 31.

In addition to the 9% bonds payable, the only debt outstanding during 2015 was a $500,000, 12% note payable dated January 1, 2010 and due January 1, 2020, with interest payable annually on January 1 and a $1,000,000, 10% bond payable dated July 1, 2011 due June 30, 2021 with interest paid annually.

Compute the interest to be capitalized in 2015. Logan uses the specific interest method. Show computations. The correct answer should be $244,200