Suppose there are two countries – Home and Foreign – that produce only coffee and sugar. It takes home workers three hours to produce a bag of coffee; and four hours to produce a bag of sugar. Foreign country is less productive – their workers spend seven hours to make a bag of coffee and a half of a day (twelve hours!) to eventually produce a bag of sugar.
1. Which country has an absolute advantage in coffee? Sugar? Explain intuition in 1-2 brief sentences
2. Which country has a comparative advantage in coffee? Sugar? Explain intuition in 1-2 brief sentences
3. Suppose Foreign country made a technical innovation which improved productivity there by one-third. In other words, foreign workers now spend one-third less time producing a bag of sugar than previously. How does your answer for part b) change?
4. Inspired by sugar producers, Foreign country created packaging technology that allowed them to decrease time to produce a bag of coffee by an hour. How does you answer to part b) change after both improvements?
5. The flow of history was exceptionally unsuccessful for Home country – it was colonized, and home worker morale decreased. As a result, Home country lost most of the mechanical innovations and their productivity become three times slower (i.e. both production times were tripled). Likewise, Foreign country kept all improvements discussed in the previous parts. How do your answers for both parts a) and b) change?
In: Economics
Does bread lose its vitamins when stored? Small loaves of bread were prepared with flour that was fortified with fixed amounts of vitamins A (beta-carotene) and E. After baking, the vitamin A and vitamin E contents of two loaves were measured. Another four loaves were baked at the same time. Two of them were stored for three days, and two of them for seven days, before taking measurements. The measurements of the amounts of vitamins A and E in each loaf are given below (in milligrams of vitamin per hundred grams of flour). We assume that they come from normal distributions having the same standard deviations.
Condition Vitamin A Vitamin E
Immediately after baking 3.36 3.34 94.6 96.0
Three days after baking 3.26 3.16 97.4 94.3
Seven days after baking 3.01 2.92 92.3 95.1
Conduct one-way ANOVA, at = 0.05 using SPSS with Takey’s option, for the vitamin E data [Note: the test is about vitamin E]. Follow the six steps of the P-value method adopted for SPSS. Then include additional conclusions based on Tukey’s test.
In: Statistics and Probability
What is your after-tax dollar accumulation at the end of the 10
year holding period?
What is your annualized after tax rate of return?
What is your after-tax dollar accumulation at the end of the 10 year holding period?
What is your annualized after tax rate of return?
In: Accounting
Analyzing, Forecasting, and Interpreting Both Income Statement
and Balance Sheet
Following are the income statements and balance sheets of General
Mills, Inc.
| Income Statement, Fiscal Years Ended ($ millions) |
May 29, 2011 | May 30, 2010 |
|---|---|---|
| Net Sales | $ 14,880.2 | $ 14,635.6 |
| Cost of sales | 8,926.7 | 8,835.4 |
| Selling, general and administrative expenses | 3,192.0 | 3,162.7 |
| Divestitures (gain), net | (17.4) | -- |
| Restructuring, impairment, and other exit costs | 4.4 | 31.4 |
| Operating income | 2,774.5 | 2,606.1 |
| Interest, net | 346.3 | 401.6 |
| Earnings before income tax expense and equity in income of affiliates | 2,428.2 | 2,204.5 |
| Income tax expense | 721.1 | 771.2 |
| After-tax earnings from joint ventures | 96.4 | 101.7 |
| Net earnings including noncontrolling interests | 1,803.5 | 1,535.0 |
| Net earnings attributable to noncontrolling interests | 5.2 | 4.5 |
| Net earnings attributable to General Mills | $ 1,798.3 | $ 1,530.5 |
| Balance Sheet ($ millions) |
May 29, 2011 | May 30, 2010 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $ 619.6 | $ 673.2 |
| Receivables | 1,162.3 | 1,041.6 |
| Inventories | 1,609.3 | 1,344.0 |
| Deferred income taxes | 27.3 | 42.7 |
| Prepaid expenses and other current assets | 483.5 | 378.5 |
| Total current assets | 3,902.0 | 3,480.0 |
| Land, buildings and equipment | 3,345.9 | 3,127.7 |
| Goodwill | 6,750.8 | 6,592.8 |
| Other intangible assets | 3,813.3 | 3,715.0 |
| Other assets | 862.5 | 763.4 |
| Total assets | $ 18,674.5 | $ 17,678.9 |
| Liabilities and Equity | ||
| Accounts payable | $ 995.1 | $ 849.5 |
| Current portion of long-term debt | 1,031.3 | 107.3 |
| Notes payable | 311.3 | 1,050.1 |
| Other current liabilities | 1,321.5 | 1,762.2 |
| Total current liabilities | 3,659.2 | 3,769.1 |
| Long-term debt | 5,542.5 | 5,268.5 |
| Deferred income taxes | 1,127.4 | 874.6 |
| Other liabilities | 1,733.2 | 2,118.7 |
| Total liabilities | 12,062.3 | 12,030.9 |
| Stockholders' equity | ||
| Common stock, 754.6 shares issued, $0.10 par value | 75.5 | 75.5 |
| Additional paid-in capital | 1,319.8 | 1,307.1 |
| Retained earnings | 9,191.3 | 8,122.4 |
| Common stock in treasury, at cost, shares of 109.8 and 98.1 | (3,210.3) | (2,615.2) |
| Accumulated other comprehensive loss | (1,010.8) | (1,486.9) |
| Total shareholders' equity | 6,365.5 | 5,402.9 |
| Noncontrolling interests | 246.7 | 245.1 |
| Total equity | 6,612.2 | 5,648.0 |
| Total Liabilities and Equity | $ 18,674.5 | $ 17,678.9 |
Forecast General Mill's fiscal 2012 income statement using the
following relations (assume "no change" for accounts not
listed).
| Net sales growth | 6.0% |
| Cost of sales/Net sales | 60.0% |
| Selling, general and administrative expenses/Net sales | 21.5% |
| Divestitures (gain), net | $-- |
| Restructuring, impairment, and other exit costs | $-- |
| Interest, net | $346.3 |
| Income tax expense/Pretax income | 29.7% |
| After-tax earnings from joint ventures | $96.4 |
| Net earnings attributable to noncontrolling interests/Net earnings before attribution | 0.5% |
Round all answers to one decimal place.
Do not use negative signs with your answers.
| Income Statement, Fiscal Years Ended ($ millions) | 2012 Estimated |
|---|---|
| Net sales | Answer |
| Cost of goods sold | Answer |
| Selling, general and administrative expenses | Answer |
| Divestitures (gain), net | Answer |
| Restructuring, impairment, and other exit costs | Answer |
| Operating income | Answer |
| Interest expense | Answer |
| Earnings before income tax expense and equity in income of affiliates | Answer |
| Income tax expense | Answer |
| Equity in income of affiliates | Answer |
| Net earnings including noncontrolling interests | Answer |
| Net earnings attributable to noncontrolling interests | Answer |
| Net earnings attributable to General Mills | Answer |
Forecast General Mill's fiscal 2012 balance sheet using the
following relations (assume"no change" for accounts not listed).
Assume that all capital expenditures are purchases of land,
building and equipment, net. ($ millions).
| Receivables/Net sales | 7.8% |
| Inventories/Net sales | 10.8% |
| Deferred income tax/Net sales | 0.2% |
| Prepaid expenses and other current assets/Net sales | 3.2% |
| Other intangible assets | $0 amortization |
| Other Assets/Net sales | 5.8% |
| Accounts payable/Net sales | 6.7% |
| Other current liabilities/Net sales | 8.9% |
| Current portion of long-term debt | $733.6 |
| Deferred income taxes/Net sales | 7.6% |
| Other liabilities/Net sales | 11.6% |
| Noncontrolling interests | * |
| Capital expenditures/Net sales | 4.4% |
| Depreciation/Prior year net PPE | 20.7% |
| Dividends/Net income | 40.6% |
| Current maturities of long-term debt in fiscal 2013 | $733.6 |
| *increase by net income attributable to noncontrolling interests and assume no dividends |
Round answers to one decimal place.
Do not negative signs with your answers.
| Balance Sheet ($ millions) |
2012 Estimated |
|---|---|
| Assets | |
| Cash and cash equivalents | Answer |
| Receivables | Answer |
| Inventories | Answer |
| Deferred income taxes | Answer |
| Prepaid expenses and other | Answer |
| Total current assets | Answer |
| Land, buildings, and equipment | Answer |
| Goodwill | Answer |
| Other intangible assets | Answer |
| Other assets | Answer |
| Total assets | Answer |
| Liabilities and equity | |
| Accounts payable | Answer |
| Current portion of long-term debt | Answer |
| Notes payable | Answer |
| Other current liabilities | Answer |
| Total current liabilities | Answer |
| Total long-term debt | Answer |
| Deferred income taxes | Answer |
| Other liabilities | Answer |
| Total liabilities | Answer |
| Stockholders equity | |
| Common stock | Answer |
| Additional paid-in capital | Answer |
| Retained earnings | Answer |
| Common stock in treasury | Answer |
| Accumulated other comprehensive loss | Answer |
| Total shareholders' equity | Answer |
| Noncontrolling interests | Answer |
| Total equity | Answer |
| Total liabilities and Equity | Answer |
PreviousSave AnswersNext
In: Accounting
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows: Common stock—$5 par value, 150,000 shares authorized, 55,000 shares issued and outstanding $ 275,000 Paid-in capital in excess of par value, common stock 525,000 Retained earnings 675,000 Total stockholders’ equity $ 1,475,000 On February 5, the directors declare a 12% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $45 per share on February 5 before the stock dividend. The stock’s market value is $40 per share on February 28.
1. Prepare entries to record both the dividend
declaration and its distribution.
2. One stockholder owned 650 shares on February 5
before the dividend. Compute the book value per share and total
book value of this stockholder’s shares immediately before and
after the stock dividend of February 5. (Round your "Book
value per share" answers to 3 decimal places.)
3. Compute the total market value of the
investor’s shares in part 2 as of February 5 and February
28.
In: Accounting
A horizontal spring with a spring constant of 190 N/cm is compressed 6.3 cm. A wooden block with a mass of 1.5 kg is placed in front of and in contact with the spring. When the spring is released it pushes the block, which slides on a frictionless horizontal surface for some distance. The block then slides up a frictionless incline of 27 above the horizontal and comes to a momentary stop before sliding back down. The system is the spring, the block, the incline, and the Earth. Ignore air resistance. A) Sketch the situation and label all variables for: i. the spring and block before the spring is released ii. the block sliding on the horizontal surface iii. the block sliding up the incline B) List all known quantities. C) Draw the free body diagram for the block sliding up the incline. D) What is the potential energy of the spring before it is released? E) What is the kinetic energy and the speed of the block as it slides on the horizontal surface after the spring has pushed it? F) At what height does the block stop on the incline? G) If the incline were rough, how would the stopping height of the block compare to the stopping height when the incline is frictionless? Explain using energy.
In: Physics
A horizontal spring with a spring constant of 190 N/cm is compressed 6.3 cm. A wooden block with a mass of 1.5 kg is placed in front of and in contact with the spring. When the spring is released it pushes the block, which slides on a frictionless horizontal surface for some distance. The block then slides up a frictionless incline of 27 above the horizontal and comes to a momentary stop before sliding back down. The system is the spring, the block, the incline, and the Earth. Ignore air resistance.
A) Sketch the situation and label all variables for: i. the spring and block before the spring is released ii. the block sliding on the horizontal surface iii. the block sliding up the incline
B) List all known quantities.
C) Draw the free body diagram for the block sliding up the incline.
D) What is the potential energy of the spring before it is released?
E) What is the kinetic energy and the speed of the block as it slides on the horizontal surface after the spring has pushed it?
F) At what height does the block stop on the incline?
G) If the incline were rough, how would the stopping height of the block compare to the stopping height when the incline is frictionless? Explain using energy.
In: Physics
1. As a stockholder in Randolph Corporation, you receive its annual report. In the financial statements, Randolph has reported that the after-tax (net) income is $300 million. With 150 million shares of common stock outstanding, Randolph announced to distribute $100 million of dividends to its shareholders. The stock is now sold for $20 per share.
a. Assume that Randolph Corporation does not have any outstanding debt. The current share price reflects the fair value of the Corporation.
i. Find the market value of Randolph Corporation before the ex-dividend date,
ii. Find the market value of Randolph Corporation after the ex-dividend date,
iii. Find the price per share of Randolph Corporation after the ex-dividend date,
iv. Calculate the value of investor’s wealth who holds 4,000 shares of Randolph Corporation before the ex-dividend date,
v. Calculate the dividend income of an investor who holds 4,000 shares of Randolph Corporation until the ex-dividend date,
vi. Calculate the value of shareholding on the ex-dividend date of an investor who holds 4,000 shares of Randolph Corporation.
b. Based on your answers in part C to answer the following
question.
Does it matter for the investor to sell his shares before the
ex-dividend date or to hold his shares until the ex-dividend date
which enables him to receive dividend? Assume the dividend is paid
on the ex-dividend date.
2. You are considering the purchase of a stock that is currently
selling at $64 per share. You expect the stock to pay $4.5 in
dividends next year.
a. If dividends are expected to grow at a constant rate of 3
percent per year, what is your expected rate of return on this
stock?
b. If dividends are expected to grow at a constant rate of 5
percent per year, what is your expected rate of return on this
stock?
c. What do your answers to part (a) and part (b) indicate about the
impact of dividend growth rates on expected rate of returns on
stocks?
vvv3. You are considering the purchase of a stock that is currently
selling at $64 per share. You expect the stock to pay $4.5 in
dividends next year.
a. If dividends are expected to grow at a constant rate of 3
percent per year, what is your expected rate of return on this
stock?
b. If dividends are expected to grow at a constant rate of 5
percent per year, what is your expected rate of return on this
stock?
c. What do your answers to part (a) and part (b) indicate about the
impact of dividend growth rates on expected rate of returns on
stocks?
3. How do corporate stocks differ from bonds? Explain.
4. Icy Candy announces a 1 for 8 bonus issues. Icing Candy
shares are trading at $9.00 before the bonus issue.
a. Calculate the theoretical price of Icing Candy’s shares
immediately after the bonus issue.
b. Casper has 1,000 shares in Icy Candy before Icing Candy
announced the 1 for 8 bonus issue.
i. How many bonus shares will Casper entitle to?
ii. Find the value of Casper’s stockholding in Icy Candy before and
after the bonus issue.
5. Eason plans to open a do-it-yourself dog bathing center in
Petland. The bathing equipment will cost $50,000.
Eason expects the after-tax cash inflows to be $15,000 annually for
8 years, after which he plans to scrap the equipment.
a. Find the project’s payback period.
b. What is the project’s discounted payback period if the required
rate of return is 10%?
c. What is the project’s net present value (NPV) if the required
rate of return is 10%?
d. What is the project’s Profitability Index (PI) if the required
rate of return is 20%? Should the project be accepted according to
the rule of PI?
6. Your firm is considering the launch of a new product, the
KPOP11. The upfront development cost is $1,000,000., and you expect
to earn a cash flow of $300,000. per year for the next five
years.
a. Draw the Net Present Value (NPV) profile for the new project
KPOP11 for discount rates ranging from 0%, 5%. 10%, 15% to
20%.
b. Determine the range of discount rates showing that the project
is acceptable. (N.B. NPV values at vertical axis whilst the
discount rates at horizontal axis)
7. Consider the following two bonds:
| Bond A | Bond B | |
| Maturity | 15 years | 20 years |
| Coupon Rate(paid semiannually) | 10% | 6% |
| Par Value | $1,000 | $1,000 |
a. If both bonds had a required return of 8%, what would the bonds’
prices be (Bond A and Bond B respectively)?
b. With reference to your answers in (a), are these two bonds (Bond
A and Bond B respectively) selling at a discount, premium, or
par?
c. If the required return on the two bonds (Bond A and Bond B
respectively) rose to 10%, what would the bonds’ prices be?
d. What do your answers in part (a) and part (c) indicate about the
relation between the required rates of return and prices (present
values) of bonds?
In: Finance
1. Brandon asks you what he should eat right after his morning strengthening workout. What would you tell him? What would be some general tips that you would tell him? Also, provide him with a sample breakfast and determine how many grams of carbohydrates, protein, and fat it would consist of.
2. Brandon is now in season and needs some help with pre- and post-game meals. His games are usually around 7 p.m. What would be your recommendation in terms of meals? Provide an example of a pre-game meal (about 3 to 4 hours before game time) and a post-game meal (about 1 hour after game time). How many grams of carbohydrates, protein, and fat would each consist of?
In: Nursing
Consider the dissociation of aqueous HCN at 25°C:
HCN(aq) --> H+(aq) + CN–(aq) K =
6.2×10–10 .
a) Compute ΔG° at 25°C.
b) If 0.120 mol of HCN is dissolved to make 200. mL of solution, then what are the equilibrium concentrations of all of the species?
c) Suppose 0.040 mol of HCN is dissolved in the same solution without appreciably increasing the volume. Compute the derivative dG/dξ for the system before it has a chance to re-establish equilibrium. Use this result to predict the spontaneous direction of reaction. (Justify the answer.)
d) Based on Le Chatelier's principle, which is the spontaneous direction of reaction after addition of the HCN? Explain qualitatively.
e) What are the new concentrations of all species after equilibrium is re-established?
In: Chemistry